By Sue Finley
The new digital ad platform BidXSell is scheduled to launch its initial sale August 28, when it will offer the winner of last year's Pegasus Stakes, Salute the Stars (Candy Ride {Arg}). We sat down with Saeed Almaddah, the President and CEO of Silk Road LLC, which operates the platform to discuss how it is different from other digital sales companies.
TDN: The digital sales arena is becoming increasingly crowded, with bricks-and-mortar sales companies getting into the game and digital-only sales companies joining the fray as well. Why did you decide to launch this now, and how will BidXSell distinguish itself from the others?
SA: The idea for BidXSell was conceived when we observed that the rise of digital sales was disrupting the traditional horse industry economy, straining long-held relationships and creating challenges. Development took about a year, during which we gathered input from major industry players to ensure the platform would meet the needs of the market. What sets BidXSell apart is that we place the auction tool directly into the hands of the stakeholders. Unlike traditional bricks-and-mortar sales, which involve facility, staff, advertising, and concierge services at a standard commission rate, BidXSell focuses on providing the digital infrastructure to stakeholders who already have the other of the pieces of the physical sale puzzle in place. We offer the digital auction machinery and contact list, empowering users to manage and complete sales on their own terms. By avoiding monopolization and allowing owners to maximize their investments, we believe BidXSell will enhance the global digital auction economy.
Additionally, with our strong industry connections, we will attract buyers from across the continents to one platform. Our main office located in Saudi Arabia further extends our reach, opening up the market and purchasing power on a global scale.
TDN: It seems as if a unique feature of yours is that sellers are launching their own mini-sale, so to speak, using your platform. Is that oversimplifying it?
SA: No, that description is accurate and aligns perfectly with the platform's design. Given the high cost of digital investment, not everyone can independently create their own digital auctions. Recognizing the growth and evolution of the digital market, we built BidXSell as a tech company with deep industry knowledge to provide a scalable platform for all stakeholders. Our goal is to support the industry's digital expansion by allowing sellers to launch their own mini-sales within a robust and adaptable framework. This platform will adapt to the needs of all industry stakeholders including agents and trainers.
TDN: Can traditional consignors also establish their own sale, for several different owner-breeders? An RNA sale, for example?
SA: Absolutely. Consignors were central to our development process. We aimed to provide them with the tools necessary to continue serving their clients while adapting to the digital landscape. BidXSell enables consignors to host sales for multiple owner-breeders and manage RNA sales. Our platform supports hybrid events, where digital sales complement live events, allowing consignors to maintain their relationships and expand their services with digital capabilities.
TDN: How can you provide all of these services for a $500 flat fee, with no percentage to the platform?
SA: The flat-fee structure is designed to be efficient and straightforward. We provide the auction platform and digital services while leveraging the fact that many stakeholders already have the necessary infrastructure for private sales. The flat fee covers access to the auction technology, while the bulk of the operational work remains with the consignors and owners. For those needing additional services, we offer a higher fee option that includes full consignment services from entry to money transfer.
TDN: If a horse RNAs, there is no fee?
SA: Correct. We charge a listing fee for the horse, but there are no additional fees if the horse RNAs (Reserve Not Attained). Our goal is to support users throughout the auction process with minimal additional costs.
TDN: How many horses a year will you need to sell to make this platform work?
SA: The success of BidXSell isn't determined by a fixed number of horses sold annually but by the overall effectiveness and user satisfaction of the platform. We designed BidXSell to scale and adapt, focusing on fostering a vibrant and active marketplace where quality and user experience drive growth.
TDN: Is there anything I haven't asked you that you'd like to say?
SA: One of the greatest features of the platform is the ability to host a private sale. No other digital auction or market has such a feature. BidXSell allows the owner of a particularly high end asset to essentially keep it off the public market, while capitalizing on the auction market structure. Owners of exceptional young racehorses are often bombarded with offers to purchase the horse or a part of the horse after an impressive debut. BidXSell puts the unique and powerful capability of a private auction into the hands of these owners. The same feature is perfect for the highest end seasons and shares as well which are often restricted from public auction sales.
I'd like to underscore that BidXSell is dedicated to revolutionizing the online horse auction experience. Our platform was built with the industry's needs in mind, offering innovative features and a user-centric approach. With our connections in the industry, we're positioned to bring buyers from across the globe to one platform. Additionally, our main office in Saudi Arabia allows us to expand market reach and purchasing power worldwide. We're excited about the potential of BidXSell to enhance the digital auction landscape and are committed to evolving alongside the industry's needs.
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