Analysis of Priceline
...sed by Priceline.com that enables consumers to use the Internet to save money on a wide range of products and services while enabling sellers to generate incremental revenue. Using the consumer proposition--"Name Your Own Price," they collect consumer demand for a particular product or service at a price set by the customer and communicate that demand directly to participating sellers or to their private databases. Consumers agree to hold their offers open for a specified period of time to enable priceline.com to fulfill their offers from inventory provided by participating sellers. Once fulfilled, offers cannot be canceled. By requiring consumers to be flexible with respect to brands, sellers and/or product features, Priceline.com enable sellers to generate incremental revenue without disrupting their existing distribution channels or retail pricing structures. It's a simple concept, but by "shielding the brand" from you until your price is accepted, Priceline.com¡¯s partners can now offer you prices not available to the general public. The brand-name partners will accept your price based on their availability at the time you Name Your Own Price. Of course, this requires some flexibility on your part, but this is what allows you to save up to 40% on brand-name products every day. For each of our products, you tell us exactly what you're looking for and how much you want to pay, and then agree to b...