IFAB has deployed ‘Dutch auction’ system in which the Digital Auction Clock runs in the decreasing order and the price per stem reduces from maximum to minimum. The minimum/ base price is fixed by the grower / supplier while the maximum price is fixed by IFAB, considering the demand for flowers. Only the registered sellers and buyers are allowed to participate in the auction. The auction starts at 8.30 AM everyday and runs till the stock is cleared. One special feature of IFAB is that the auction is done on all 365 days in a year, in order to help sellers and buyers in maintaining continuity in their business.
A very wide and deep assortment of flowers is available though the IFAB auction clocks on a daily basis. Approximately, 1,000 auction transactions are observed every day.
IFAB is planning to deploy following types of advanced auction systems to attract more new buyers located at far away places.
In order to take advantage of new market demand, economic developments and technological possibilities, IFAB invests a great deal in the system of sale through the clock. For example, IFAB offers dealers sophisticated facilities for online buying: Remote Buying. With the help of such services as Remote Buying, IFAB is able to attract an increasing number of (international) buyers to the auction. And the stronger the ‘purchasing power’, the more attractive it is for growers to trade their products through IFAB.
In the case of image auctioning, flowers no longer appear in front of the clock but photographs of the products are displayed in the auction rooms. The main advantage is that flowers and plants can be taken out of the cold stores to the customer immediately after they are sold.