The online market plays the role of an intermediary in the auto auction business, bringing dealers and customers on a common platform that features many advantages. The internet allows car auctioneers to extend their services beyond geopolitical borders. Expansion of the service area multiplies the number of potential customers and thereby increases the revenue and profit. Information technology (IT) along with the world wide web opened the world market to sellers and buyers.
The growth of salvage car auctions is not solely dependent on the advances made in the field of technology. This blog gives an insight into the value created through co-creation in second-hand car auctions, such as the Long Island car auction.
Understanding the Concept of Value Co-creation
To develop this theoretical model for value co-creation in salvage car auctions, it is imperative to know that value co-creation is at the heart of service science (SS). Service, here, refers to one entity using knowledge and skills of a person for the benefit of the other while SS implies the study of service systems and that of the co-creation of value within complex arrangements of unified resources. If we talk about service-dominant logic (SDL), the value is always created jointly and mutually, when interactions happen among providers and recipients through the unification of resources and utilization of competencies.
Salvage Car Business in the US: A Glance at Past Trends
The state of the economy directly affects salvage vehicles’ sales. When the recession hit the US economy in 2008, a downturn in sales occurred from 2007-2008. Car sales plummeted by more than 17 percent and another million again in 2009 before the industry recovered in the same year. This, however, didn’t shake the market’s confidence and interest in salvage cars. This fact was evident from 2009 to 2012 wherein sales of salvage cars soared by more than 14 percent. Many people chose to buy these cars due to many reasons such as low cost, better deals and and wider choice that appeals to a variety of needs.
Value Creation in Salvage Car Auctions
At the time of salvage car auctions, when interactions happen between auction websites and buyers, various kinds of values are co-created. These values are both economic and noneconomic in nature.
If we talk about economic values, auction of salvage cars is risky as these cars don’t come with a warranty. This no-warranty attribute of a salvage car auction finally gives more economic value to these auctions. Consignment fees, contract completion fees and successful bid fees are few of these economic values.
Networking is one of the key non-economic value that gets co-created at the time of a second-hand car auction at Long Island. Networks get built through sharing, cooperation, and partnership with other auctions of salvage cars. Justice is another essential non-economic value that involves trust, confidence, quality and respect. As far as the value of justice is concerned, we can say that salvage car auctions primarily target the end users, and this is the reason these auctions constantly set standard market price for salvage vehicles. This standard market price helps to win over the trust of customers. Regional development and environmental protection are other non-economic values co-created during auctions.
Power, speed, and loyalty are among the other values that are created through interactions between buyers and resellers during salvage vehicle auctions. Resellers conduct live auctions of these vehicles to support global distribution of salvage vehicles. Online vehicle auctions harness the power of the internet and enable you to wrap-up deals hassle-free. Talking about the value of loyalty that also gets co-created at the auction time, satisfied buyers are expected to buy a higher number of salvage vehicles from this auction that ultimately proves their loyalty towards those kinds of vehicles.
With the manifold growth in internet use, salvage car auction business is flourishing with every passing day. Sale of salvage cars is witnessing tremendous growth, not only due to IT revolution but also, because of the values co-created in salvage vehicle auctions. These economic and noneconomic values are created when interactions happen between auction websites, sellers and buyers.