Transaction Platform Reverse Auction Pre-Negotiation
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Solution Overview
Problem
The process of purchasing a vehicle is often stressful for individuals due to the lack of objective information and the disadvantageous position they are in during negotiations with sales personnel, who aim to maximize profits, leading to uncertainty about obtaining the best deal.
Innovation Solution
An integrated transaction platform that provides a pre-negotiated purchase price through a reverse auction process, integrating information from various data services to offer cost recommendations and facilitate a frictionless transaction by selecting the lowest bid from multiple sellers, thereby reducing the need for haggling and ensuring optimal financial terms.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional negotiation process is used with sales personnel, then seller can maximize sale price, but purchaser experiences stress and lacks confidence in getting best deal
Solution Approach 1:
The patent introduces an online platform as an intermediary between purchasers and sellers. This platform automates the negotiation process through bid requests and counter-offers, eliminating direct human negotiation stress while maintaining transaction reliability through structured communication protocols and transparent pricing information.
Solution Approach 2:
The patent replaces the mechanical human negotiation process with an automated electronic system. The platform uses computer algorithms to generate bid requests, process counter-offers, and finalize transactions, substituting human emotional stress with systematic automated interactions that provide purchasers with confidence through transparency and consistency.
2Loss of information
If purchaser negotiates directly with seller, then transaction can be completed, but purchaser is at disadvantage without objective information
Solution Approach 1:
The patent implements feedback mechanisms where the platform provides purchasers with objective information about market prices, comparable transactions, and seller responses. This feedback loop enables purchasers to make informed decisions by comparing multiple data points and understanding the fairness of offered prices, eliminating information asymmetry.
Solution Approach 2:
The platform serves multiple functions: it acts as an information repository, negotiation intermediary, price comparison tool, and transaction facilitator. By consolidating these functions, the platform provides purchasers with comprehensive objective information needed for informed decision-making while simplifying the overall purchase process.
3Measurement precision
If multiple sellers are contacted individually, then best price can be found, but process becomes time-consuming and complex
Solution Approach 1:
The patent merges multiple seller interactions into a single platform interface. Instead of contacting each seller separately, purchasers submit requests through the platform which automatically distributes them to multiple sellers and consolidates responses. This combining approach maintains price comparison accuracy while dramatically reducing the time and effort required.
Solution Approach 2:
The platform performs preliminary actions by pre-screening sellers, pre-negotiating terms, and pre-comparing prices before presenting options to the purchaser. This preliminary processing eliminates the need for purchasers to manually contact and evaluate multiple sellers, reducing time loss while maintaining precise price comparison through automated evaluation criteria.
Data Source
AI summary
An integrated transaction platform facilitates a transaction, such as a purchase of a vehicle or other item. The platform provides a pre-negotiated purchase price for the item to facilitate a transaction to purchase the item from a seller, the transaction being substantially frictionless from the buyer's perspective. The pre-negotiation can involve a reverse auction process in which sellers bid to sell the item to a buyer. After the buyer has identified a particular item for purchase, sellers that have the item available are notified to provide a bid indicating a price at which the seller is willing to sell the item. The lowest bid is selected, and a purchase agreement is finalized based on the lowest bid. After the agreement is finalized, the buyer can accept delivery of the item without further negotiation with the seller, and thus with substantially reduced friction compared to traditional purchase scenarios.