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The idea of Pricefalls was first imagined in 2008 by Elliot Moskow, an economics major from Bates College, located in Lewiston, Maine. Out of a need to earn extra cash that summer, Elliot obtained confiscated jewelry from police auctions in order to sell them on the popular shopping site eBay. He started with a few rings, some of which sold to buyers with Nigerian shipping addresses. Elliot had received a fraudulent PayPal receipt from a fraudulent user, and additionally had paid fees to list his items, losing money. As a result, Elliot permanently discontinued his activity on eBay and began to think of alternative ways to sell online.
Upon his return to Bates after the summer, it was a friend that revealed an idea born centuries ago: the Dutch Auction. In a Dutch Auction, the auctioneer begins with a high asking price which is lowered until some participant is willing to accept the auctioneer's price, or a predetermined reserve price (the seller's minimum acceptable price) is reached. The winning participant pays the last announced price. This is also known as a "clock auction" or an open-outcry descending-price auction. This type of auction is convenient when it is important to auction goods quickly, since a sale never requires more than one bid. Theoretically, the bidding strategy and results of this auction are equivalent to those in a sealed first-price auction.
The Dutch auction (named for its use in the Dutch Tulip Craze) had both an appealing name and concept. After class, the idea for a better online marketplace that removes the user frustrations of bidding wars, sniping, and scams, was born. Elliot proceeded to seek out other students capable of technically executing a reverse auction website and developing a recognizable brand.
His search led him to a partnership with Bates alumni Peter Schaefer and Chad Casey, the founders of a web media company called Lautus Design. Elliot Moskow, Peter Schaefer and Chad Casey established Pricefalls in June 2008, laying the groundwork of what was soon to follow. It would be a site that emphasized a model that could help businesses and individuals alike, especially during the down economy. It would also be a system where online shoppers could set their own prices in a descending auction — a process that has since become known as 'gravity shopping.'
Since its inception, Pricefalls platform has been built in-house from the ground up. The team has faced a number of challenges throughout the initial development of the Pricefalls platform; however, through hard work and determination, Pricefalls has managed to rise above each challenge along the way.
Pricefalls.com has grown consistently since announcing its public beta in September 2009, after successfully raising seed funding from private investors. Although the name "Pricefalls" refers to the descending price as the basis for the business model, recently they have expanded the platform to allow for fixed price listings as well. Meanwhile the executive team has expanded through annual internship programs held on-site in Las Vegas. Through these programs, we have brought on Ryan Rollo (Director of Customer Relations), Joshua Weaver (Director of Communications), and Matthew Twitchell (Director of Inventory Management and Distribution). If you are interested in applying for a position at Pricefalls, please see our Positions Available section.
