The Network CrowdBuy® is Crowdz’s revolutionary dynamic-pricing engine that enables sellers at any point in the supply chain—from raw materials to retail—to automatically optimize prices and maximize sales throughout a distributed network of selling points.
How it works. With its Network CrowdBuy, Crowdz sits at the pinnacle of group-based dynamic pricing:
- In the tipping-point (Groupon-type) model, buyers submit purchase requests, which are consummated at a single, preset price only when purchase volume reaches a predetermined amount. Otherwise, if this purchase volume is not attained, the sale is canceled.
- In the traditional GPO model, the price of a given product is reduced in preset, stepwise fashion as more purchasers agree to buy the product from a single selling point. The sale is consummated only after all interested purchasers have joined the buying pool.
- The standard Crowdz CrowdBuy® eliminates the “buying pool” concept. Prices still decline in a preset, stepwise fashion as more people purchase the product from a single selling point. But each sale is consummated as it is made, with no fulfillment delays, and with early buyers receiving an automatic rebate as the price drops. As a result, all purchasers pay the same effective price for purchases made over the term of the CrowdBuy, no matter when the purchase is made.
- Crowdz’s patent-pending Network CrowdBuy introduces the concept of distributed selling. Sales of a product from any selling point (a company website, printed catalogs, brick-and-mortar stores, in-house and third-party sales reps, web marketplaces, online affiliates, etc.) are included in the sales volume for that product during the term of a particular CrowdBuy. The price declines on a continuous basis as more purchases are made from any of these selling points, with rebates for early buyers automatically generated as the price declines.
Network innovations. The Crowdz Network CrowdBuy incorporates a number of other patent-pending innovations that streamline both the selling and buying process:
- The Crowdz Network CrowdBuy can be easily implemented by any seller in the supply chain—from raw-materials providers through retailers—via a similar API/SaaS interface.
- Dynamic price optimization. Crowdz’s dynamic-pricing engine automatically optimizes the price for each CrowdBuy product throughout the distributed selling network according to the seller’s preset criteria.
- Network-enhanced demand forecasting. The ultimately billions of data points generated throughout the universe of Crowdz’s CrowdBuy Networks dramatically enhances demand forecasting for any supply chain. Sellers have real-time data access and analysis not only for their own transactions, but for highly structured aggregate data for all transactions throughout the Crowdz universe.
- Network-based referral fees. The Network CrowdBuy includes an automated, built-in network referral-fee system, allowing third parties to automatically receive a seller-determined commission not only for their own sales, but for buyers they refer to a given Network CrowdBuy.
Benefits. The Crowdz Network CrowdBuy application fundamentally transforms the traditional transactions landscape, introducing dramatic new efficiencies and unprecedented incentives for sellers and buyers alike.
- Sellers can dramatically accelerate sales of a product (including liquidations and inventory close-outs) through a network of highly-incented buyers and third-party selling points while ensuring that the sales price never declines below a preset amount.
- Buyers are always assured of receiving the lowest effective product price within the CrowdBuy network as prices dynamically decline, which falls further as they and other buyers increase their referral activity.