6 Question Interview: RedBread Auctions

AuctionCUT interviews Jane Taylor-Morris of RedBread Auctions, a recently launched alternative auction site.

1) How did RedBread Auctions start and what inspired it?

I stumbled across a well known German penny auction website and found the business model to be extraordinary. I know that us British are always on the lookout for shopping bargains and we are a gambling nation so putting these two together with the knowledge that the UK penny auction market was relatively unexposed I immediately commissioned a programmer to design a website for us. With a long and successful customer services background I believed from day one that there was an opportunity to have a slice of the UK ‘cake’ so RedBread was born in May 2008 with a six figure self-funded capital injection. From late in 2008 until April 2009 we were actively marketing and beta-testing the Redbread website and we finally went live on 1st May 2009.

2) Can you tell us about the RedBread Auction Format?

We use a variation of auction formats to offer our members variety. Our 100% Discounted Auctions allow members to pick up an auction and pay for just postage and of course the cost of the bids that enabled them to win the auction. Our Nailbiter auctions allow members to participate in auctions without the worry of competing against huge Bid Builders that some members place to try and ensure an auction win. With our bid packages costing a maximum of 25p per bid our members outlay in winning an auction is significantly less than that of our competitors.

3) What kind of team run RedBread Auctions?

We have a relatively small but growing proactive team at Redbread consisting of customer services staff who are only too happy to handle members calls and emails. Our policy is to reply to all enquiries within one working day of the enquiry being received. We also have marketing and IT specialists who provide important and continual operational support. Our marketing and IT staff all have many years experience within their own fields working alongside famous global brands. In addition we are also contracted to a number of specialist agencies working on our behalf.

4) What’s the best tactic for bidding on RedBread?

It is hard to establish what is the best tactic for bidding on RedBread as our auctions do kick up some strange results. Take for example one of our recent lucky Scottish winners who, with only 3 bids (75p) managed to win himself a 10 night all inclusive holiday for two in Barbados worth over £4000. There are other members who place Bid Builders that seem to run all day yet still get pipped by an eagle eyed member who is just waiting for that Bid Builder to finish. On the other hand there are many members who are successful with Bid Builders. Having said that there as many people if not more, who win auctions with single bids. There is no ideal time to start bidding on auctions as we have auctions that literally end after just a few bids whilst there are also auctions that seem to run and run. One tip I would give is to keep an eye on the volume of bidders on any particular auction. Once the volume of bidders starts to dilute then perhaps this is the time to get involved but DO NOT wait until the last second to bid or indeed rely on another member to bid at the last second as they may not bid and the auction will end with neither you or your co-conspirator not winning at all.

5) How could the auction format be made better & would you ever allow members to auction their own items on RedBread?

We are happy with our current auction format. We believe that we offer terrific value with our bid packages, we offer a fantastic range of products for auction on a daily basis and most importantly our members enjoy playing on a level playing field. Our auctions are tangible and within reach of everyone. As you can see from our website we are currently developing a sister website called Bluebread that will allow visitors to auction off their own goods for a minimal one-off fee. Although I cannot give you a definitive figure just yet, you can assume that this fee will be a standard charge of between 25p and 35p per item listed. There will definitely be no commission payment on items sold. I believe people are getting a little cheesed off with the extortionate fee’s that some websites charge their members to sell their goods and in recession fuelled times there is an opportunity for an alternative channel that will offer good exposure of the items being sold for a no-brainer fee.

6) What other developments does RedBread have planned for the future?

We do have expansion plans that involve the US market but we are still relatively young and want to concentrate on our own territory initially. We will be advertising for potential partners in the USA in due course so please watch this space.

AuctionCUT thanks Jane Taylor-Morris of RedBread Auctions for the interview and you can see a review of RedBread Auctions published on Thursday. You can visit RedBread by clicking here.