2. Mission Statement
Barter Deck will enable shoppers and retailers to
negotiate prices of products. Our goal is to give
retailers unrivaled price discimination power, and
consumers the ability to buy products at prices
they can afford.
3. Problem
In pre-industrial societies, negotiation was the standard in market places. Today,
it is not feasible for large retailers to negotiate every transaction, making it difficult
to price discriminate.
Then Now
Individual store owners negotiated Individual store managers post
with their customers. prices that apply to all shoppers.
Merchants knew their customers, and Price discrimination is difficult,
would price discriminate each sale. inaccurate, and costly.
Through negotiation, merchants discover Stores only have data on purchases,
what customers are willing to pay. and not what customers would
like to pay.
4. Retail Pricing Technique
Without Price Discrimination With Perfect Price Discrimination
Value to Value to
Customer Customer
All possible profits are
realized.
Missed Profit
Selling below
customer value. Selling
Price
Selling
Price
Missed Profit
Transactions Cost
Cost do not occur. per
per unit
unit
Make Purchase No Purchase Consumers All Consumers Above Consumers
Cost/unit Make a Purchase
Our goal is to give retailers close to perfect price discrimination
5. Solution 1 of 2
Barter Deck will enable shoppers and retailers to negotiate prices. A shopper can
negotiate with a brick and mortar retailer as follows:
Shopper scans a
product with our app
and enters their offer.
Shopper receives Yes Store accepts No Barter Deck alerts
confirmation. Choses offer? all other registered
to purchase, or not. retailers of offer.
No retailer accepts Original retailer Shopper’s offer is
offer. Shopper can accepts offer at a accepted by other
remake offer, or later date. retailer.
wait for price
reduction.
6. Solution 2 of 2
We will initially launch a web widget that enables web retailers to negotiate with their
online customers.
Canon EOS Rebel T3
$499.99
Your offer Qty.
Shopper clicks our
Shopper finds
button, located next
an item on retailer’s Your email
to the retail price.
website. Wants it for
or Sign-in
a lower price. Make an Offer
Submit
$100
$
Barter Deck Download the app
If the retailer denies the offer, we open the offer to all registered retailers.
7. Execution
Creating a market place takes a large promotional effort. Instead, we will start by
providing retailers with a service, then leveraging it’s usage to form a marketplace in
3 steps:
1. Sign-up Retailers to Use Our Widget
* Free service for negotiating with customers Make an Offer
* Only participating retailers receive open offers
*Generates supply side of market
2. Interface with Consumers
* Broadcast rejected offers to all retailers in our network
* Launch consumer apps, and promote through the widget
*Generates demand side of market
3. Launch Consumer Tools
* Browser extensions, web app, mobile
* Make offers from anywhere--in store, online, on
social networks
8. Market Landscape
Name-Your-Own-Price Retailers
Name Your Own Price
-Use negotiation alredy
-Barter Deck can give them smarter $ .00
negotiation ability, and access to more offers
Shopping Apps
-Barcode Scanners, price comparison, etc.
-Not in direct competition
-They can add our widget in their apps
Discount Sites
-Middle men
-Do not acheive accurate price discrimination
50%
9. Monetization
Premium Services
For Retailers For Consumers
Setting variable price threshholds, based Setting variable price threshholds, based
on the user’s buying history on the user’s buying history
Data reports on customer pricing behavior. Targeted discounting based on pricing
demographics
Targeted discounting based on pricing
demographics
Transaction Fees
For Retailers For Consumers
Nominal transaction fee on each purchase Nominal transaction fee on each purchase
