If you are looking for items on the Hurify Digital Markets Hardware Marketplace, you will notice some recent changes and even more changes coming in the following weeks. We have recently revised our pricing model to incorporate dynamic pricing. Our long-term vision for the Hardware Marketplace, and the entire Hurify Digital Markets ecosystem, is to enable a decentralized environment that will be open to more vendors offering their goods. More vendors mean more choices and buying options.
The first change that we recently introduced is dynamic pricing. Vendors offering their items need to have confidence that their prices will reflect their current offering prices and that of the HUR tokens that they can receive in exchange for their goods. Also, it’s important for the pricing on the platform to represent the actual cost of goods sold and the costs of getting those goods delivered to any customer anywhere in the world.
During the first months of operation since going live, our pricing remained largely unchanged. However, a dynamic pricing system is the best way to build and maintain an attractive and sustainable Hardware Marketplace that can support more vendors and buyers. Going forward, we will do our best to assure buyers and sellers have a reliable and seamless venue for the exchange of goods for value.
Below we will discuss how repricing frequency and the factors that may influence pricing will combine to create adjustments that you may see on the Hardware Marketplace.
More frequent repricing: We plan to reprice some items or the entire catalog upon periodic review. This could result in changes daily or if other factors remain the same, at least once per week. Vendors on sites such as Amazon.com have the ability to update prices in real time. We expect to give our vendors control over their pricing as well. But unless they are changing prices due to short term supply conditions beyond their control, we are going to try to encourage vendors to hold prices stable and predictable.
Factors that influence pricing: As of now, two main factors will determine our pricing on the Hardware Marketplace. The first of these is the vendor input price. When we purchase goods now, we have to take whatever price the vendor offers us. This is a centralized model we want to get away from. However, we are making every effort to get the best prices so that our business model is sustainable. As we move to a more decentralized model, we will use active pricing from input received dynamically from vendors to drive the price.
Some vendors adjust prices to reflect their changing costs or to reflect shortfalls or surplus of supply. Vendors also will in some cases offer volume discounts, either directly through the marketplace offering, or by negotiation on a case by case basis. It is our hope that as the Hurify community increases their purchase volumes, vendors will see the value of offering favorable pricing to Hurify community members and we are doing what we can to raise the visibility of our community in the eyes of vendors to earn specific discounts and incentives directly from the vendor.
The second part of the dynamic pricing model is an effort to more closely match the current value of the HUR token as reflected in 3rd party exchange transactions. A healthy ecosystem must have consistent price signaling throughout, and like any economic system of incentives, should seek to achieve a relatively stable balance of inflows and outflows.
Our assumption is that anyone who can acquire tokens from a third party should have an incentive to use them immediately on the marketplace. We also want to show vendors that accepting tokens is not a decision that they have to make entirely disconnected from the current market value. At the moment, we have built into our conversion factor a strong incentive to buy tokens and use them right away to purchase hardware items.
More Earning, More Spending: In a few weeks, we will activate some very exciting and easy Earn opportunities that our community can take advantage of to help us build the platform. When our community is getting tokens for contributions to create a bigger and better ecosystem, this will, in turn, make the Hardware Marketplace more valuable.
Our job, as curators of the combined Hurify Digital Markets, is to make sure that the overall vitality and sustainability of the ecosystem is supported by the combination of incentives that participants have available to them. When we achieve that, the true utility of the token will begin to be reflected in the price. The Hardware Marketplace will be an important and vital part of the IoT development ecosystem. Dynamic pricing is the first step to opening up the Hardware Marketplace for future growth.
We can appreciate that the changes we are making may be a surprise to some. We think, though, that if you’re really paying attention, you’ll realize we are at the beginning of a very exciting journey to build a truly decentralized IoT ecosystem that will have far reaching benefits to all our participating community members. There is more to come, and it is very exciting!