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#326555 - 10/25/10 02:06 PM Re: Axiom Auctions [Re: grunt]
Ken.C Offline
shareholder in the making

Registered: 05/03/03
Posts: 17766
Loc: NoVA
I can see that. Maybe if they lowered it to two weeks instead.
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#326559 - 10/25/10 02:09 PM Re: Axiom Auctions [Re: casey01]
grunt Offline
connoisseur

Registered: 12/04/06
Posts: 3569
Loc: Nirvana
Originally Posted By: casey01
I guess it gets back to that old adage "there is a price to pay for everything". I, myself, preferred the "factory outlet" set-up because I knew, even if I had to wait, I would be able to buy pretty well anything in the entire product line that I wanted at the 10% discount. With the auction, only a handful of product is available at any given time and there is no guarantee that my bid will secure the product even if it is one I am looking for. Quite frankly, even the owner's club volume of available product and the option of making an offer on them, to me anyway, is just as or even more attractive than the auction.

Alas, I guess that is why cars come in many different colors.



I agree that the “factory outlet” method was better for the customer however it had to be expensive for Axiom. As you point out the volume of product available for auction is low. This indicates to me that Axiom had to fill most FO orders with A-stock and only shipped B-stock if it was actually available. As we can see from the auction site there’s not nearly enough B-stock to fulfill the FO orders Axiom must have been receiving, something I always suspected.
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#326560 - 10/25/10 02:11 PM Re: Axiom Auctions [Re: Ken.C]
Da_Gimp_Pimp Offline
connoisseur

Registered: 06/23/07
Posts: 4018
Loc: Sitting down somewhere
Can't the timeframe be chosen by the individual selling the item?
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#326564 - 10/25/10 02:16 PM Re: Axiom Auctions [Re: Da_Gimp_Pimp]
Ken.C Offline
shareholder in the making

Registered: 05/03/03
Posts: 17766
Loc: NoVA
Absolutely. But in this case, Axiom is choosing 4 weeks as the time frame.
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#326566 - 10/25/10 02:23 PM Re: Axiom Auctions [Re: Ken.C]
Da_Gimp_Pimp Offline
connoisseur

Registered: 06/23/07
Posts: 4018
Loc: Sitting down somewhere
Four weeks? I knew they were long, but that's too long of a time frame (appreciate the correction, Ken smile ) IMO.
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#326567 - 10/25/10 02:27 PM Re: Axiom Auctions [Re: grunt]
casey01 Offline
aficionado

Registered: 07/03/08
Posts: 768
Loc: Toronto
Originally Posted By: grunt
I can’t speak for others but for me the issue isn’t competition it’s the waiting period once the bidding starts. It’s still first come first serve if you get the item before anyone has placed a bid so that’s not completely gone. However, to me the issue is the wait. Might not be as bad if the waiting wasn’t so long. It was one thing to buy from the factory outlet with a 4 week wait knowing you would get your product by then or sooner. Now you have to always wait a month and still may not get what you want, meaning placing an order and waiting again.

I just think Axiom will move their B-stock faster if they go to straight discount pricing instead of dragging out an auction. I’m not sure what the auction results have been so far or there is even enough data to look at but I imagine not to many people have paid over the 10% markdown while bidding and probably less.

I don’t begrudge Axiom trying something new but if auctioning B-stock was a good business idea I imagine other audio companies would also be doing it. I imagine most companies try to keep their on hand inventory as low as they can and still fill orders in a timely manner. Having an asset sitting around almost guaranteed for 30 days seems like a waste to Axiom and a hassle to most buyers.


In conjunction with what I mentioned above, I would fully concur with what you have said. I may be wrong, but the only reason I can think that Axiom replaced the "factory outlet" set-up with the auction was as "B-stock" items became available perhaps it was a way of disposing them quicker and at a little higher price otherwise, I must admit and perhaps I am missing something here, BUT I really don't see any other reason for the change in approach.

Here again, the only problem with this process is you better hope what you have available is what your customers want otherwise I don't think anyone is going to be too keen on paying more than 90% of the NEW price otherwise one might as well buy it NEW and be guaranteed getting it quicker without the wait and hassle.

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#326568 - 10/25/10 02:41 PM Re: Axiom Auctions [Re: grunt]
BlueJays1 Offline
connoisseur

Registered: 09/19/08
Posts: 4078
Loc: Porch,enjoying Bombay Sapphire
Originally Posted By: grunt
Originally Posted By: casey01
I guess it gets back to that old adage "there is a price to pay for everything". I, myself, preferred the "factory outlet" set-up because I knew, even if I had to wait, I would be able to buy pretty well anything in the entire product line that I wanted at the 10% discount. With the auction, only a handful of product is available at any given time and there is no guarantee that my bid will secure the product even if it is one I am looking for. Quite frankly, even the owner's club volume of available product and the option of making an offer on them, to me anyway, is just as or even more attractive than the auction.

Alas, I guess that is why cars come in many different colors.



I agree that the “factory outlet” method was better for the customer however it had to be expensive for Axiom. As you point out the volume of product available for auction is low. This indicates to me that Axiom had to fill most FO orders with A-stock and only shipped B-stock if it was actually available. As we can see from the auction site there’s not nearly enough B-stock to fulfill the FO orders Axiom must have been receiving, something I always suspected.


The Just In Time Inventory (JIT) strategy employed with the Factory Outlet must have some benefits as well even with some A-stock inventory thrown in with the B-Stock. But I think you nailed it again Grunt. With the popularity of the FO and the amount of product volume that shows up in the auction site they must have been fulfilling FO orders with some A-Stock which in turn would be hurting margins. I agree with the others that the auction serves no benefit to the consumer over the outlet. In fact the FO being superior because you can order a full matching home theatre system at discounted pricing anytime but the cost cutting measures seems reasonable.
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#326569 - 10/25/10 02:42 PM Re: Axiom Auctions [Re: Ken.C]
snazzed Offline
local

Registered: 09/07/09
Posts: 201
Originally Posted By: kcarlile
Customer service is not quite the same as changing the behavior of the Buy Now button... in fact, I would wager that that behavior is not customizable, and Axiom's using off the shelf auction software.


I'm pretty sure they can fix it. I'll let their developer know.

Also, I can speculate why they would put the Factory Outlet stuff in the Auction Site and have long auction durations. Traffic.

Speculation:
Initially the Auction site was for customers to sell used gear. However I imagine PreOwned listings would be few and far between. Just have a look now. How many Used items are in there? As of right now, zero. Its all B-Stock.

Also having longer durations means the listings stay there for longer and can accumulate.

If the Auction Site was PreOwned only, or included B-Stock with short (1 week?) durations the inventory levels would be low enough that I think most of us would stop checking it... "Hey, lets check the Deals site again! Oh. Still empty."

This way they keep good inventory levels and we keep coming back to look.

/speculation

snazzed
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#326570 - 10/25/10 02:45 PM Re: Axiom Auctions [Re: BlueJays1]
CV Offline
Founder, Axiom Upgrade Club
shareholder in the making

Registered: 07/20/06
Posts: 11187
Loc: Richland, WA, USA
Originally Posted By: Dr.House
I agree with the others that the auction serves no benefit to the consumer over the outlet


Again, I appreciated being able to use the Buy Now option at the 10% off price and not have to wait multiple weeks before having my order filled, as I would have under the old Factory Outlet.

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#326571 - 10/25/10 02:47 PM Re: Axiom Auctions [Re: casey01]
Da_Gimp_Pimp Offline
connoisseur

Registered: 06/23/07
Posts: 4018
Loc: Sitting down somewhere
Just a thought, but do B-stock items get used as floor models in stores? It most certainly wouldn't surprise me.
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