Inventing a concept

This forum focuses on how the principles of business processes within the market place were conceived.

Inventing a concept

Postby dustremover » Mon Dec 09, 2013 10:29 pm

The intention of the proprietors and operators of the market place hodegos.com and hodegos on other domains was: To provide artists and promoters and everyone who acts in the middle between them a facility which enables them to strike deals with each other. As such to respond to an obvious demand out there. The processes and functions of which to be same or similar to online stores and auction websites.

Soon after the creation of the market place, it became clear that 2 fundamental aspects would have to be done in a different way.

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[Here comes a theoretical explanation.]

1. Auction principle cannot apply

The winner of an auction is normally a person who poses the highest bid. An auction is normally a decision process in which the only dimension measured is an amount of money. While this principle might work fine for a lot of auctions in which the commodity to be traded is a tangible good and in which other matters than the amount of money which the person with the highest bid is ready to pay for it are rather irrelevant, in the area of the performance of art may be different. For the live performance of art, other aspects might matter, aspects which are objective (time, location etc.) and aspects which are subjective (the identity of the potential contract partner, his reputation, past experience etc.).

Yet, the market place is supposed to bear an element of contest or competition which ascertains that every contract is made at conditions adequate and fair for both sides.

The solution: A process which is in principle

ORIGINAL OFFER: An artist or a promoter takes initiative in that he poses an offer.
COUNTER OFFER: People who are interested in the original offer state their terms.
DECISION AND CONTRACT: The original offerer chooses among counter offers received and makes a contract.

2. No obligation for original offerer to fulfill when counter offerer has submitted

Following the thoughts already mentioned above, i.e. the fact that there may prevail objective and subjective reasons why an original offerer can or will not accept the terms of a counter offer, the conclusion is: The original offerer is not bound to his original offer, no matter if the counter offerer meets the original terms or not.

However: The counter offerer is bound. Once the original offerer has agreed to a counter offer, a contract has been made and both parties are bound.

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[Here comes a practical explanation.]

Imagine that there is a famous rock’n roll star by the name of Elvis and that Elvis poses an offer on hodegos. On offer is the performance of a concert at a compensation in the amount of 100,000 $. Imagine you are planning a special event for your birthday party, you want to have Elvis play for you and your friends, you raise the 100,000$, and you pose a counter offer, hoping you book Elvis. Well, despite the 100,000 $ and despite the fun performing for you, Elvis might pass on this counter offer. Whatever his reasons: He might not perform at people’s homes, he might want to have some other features provided or he might not have any reason at all, but he declines. This is the first principle of the market place. He can decline. However, he might accept. He makes a contract with you. If he does, then there is no escape for you. You are bound by your firm counter offer. Elvis has to perform, and you have to pay him 100,000 $. This is the second principle of the market place.
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