Today, more than half of the world’s cut flowers are bought and sold at the auction in Aalsmeer, half-hour southwest of Amsterdam. This has been the hub of the global flower trade since the early 20th century. Let's start by taking a look back historically at the origin of the Dutch Auction.
The name itself refers to how flower auctions were run in the Netherlands. It was in the early 1600's the traders from the Ottoman Empire introduced the tulip bulb. The flower was unique at the time in Europe and this caused a rage in the demand for the tulip. But the tulip takes about 7-12 years to grow, which created a supply deficit.
The Dutch Auction was the solution as in this system allows the price to be reduced until a buyer is found. It is also called a ‘reverse auction’ because the auctioneer begins with a high asking price, and lowers it until some participant accepts the price, or it reaches a predetermined reserve price. With Bidsonline’s auction software we create the digitalised platform for you to conduct this type of auction through live simulcasts and online auctions.
So there you have it, a brief history of Dutch Auction. You can share this fun little story or just smile to yourself, think of tulips and be happy that you can buy them anytime, anywhere and relatively cheap!