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Date: 06/27/2005
After nearly a century still a great system.

Not only is the system unique, its name is also unique: 'Dutch auction' is a recognized term all over the world. Every day the Aalsmeer auction sells flowers valued at nearly 4.7 million Dollar and plants valued at 2.9 million Dollar, to no less than 84 different countries. More than 70% of sales are still effected by the auction clock, an instrument that has proven its worth every day for nearly a century and still continues to do so.

 

As Director, Dirk Hogervorst is responsible total sales (annual total sales: 2004 1.9 billion Dollar) at the Aalsmeer auction. He has worked at the auction for more than 13 years. Having studied both horticulture and economics, he finds this combination ideal in his current line of work. His enthusiasm for the system has only grown through the years. "It is still mind-blowing. It is a supermarket stocking more than 10,000 items, with new, fresh products every single day. You can purchase any amount that you want here and the price is determined in the most honest way possible, i.e. on the basis of supply and demand. Where else could you find this?"

 

More relevant than ever

Selling by Dutch auction - some may think the clock it to be old-fashioned. The clock, that is, is where the price keeps dropping until a buyer pushes a button to signify an acceptable price. The truth however is that it is more relevant now than ever before. Dirk: "it is an extremely efficient instrument. If you have to carry out 50 transactions here, it will take no more than one and a half hours to complete them and everything is shown on one single invoice. Under other circumstances you might need to make 50 phone calls to 30 different companies before you could manage to put together a purchase of this size."

 

In addition you also have the security of a well organized before and after sales system. Dozens of auction-employed quality controllers spend their days visiting growers who sell their products through the auction. Dirk: "Customers are becoming increasingly critical. Variety, color, length, quality; all these details are expected to be accurate. Strict regulations also apply when it comes to exports. In some countries, just a few grains of sand still attached to a stem can be reason enough for a shipment to be declined at the border. We aim to protect our clients from scenarios like this as much as possible." 

 

Internet

The reason the system (which started in a pub where growers and traders used to meet) has been so enduring is because the auction has always been able to advance with the times. Huge plasma screens in the auction hall provide plenty of information about each of the lots for sale. Internet is also playing an increasingly important part in the auction. Traders and exporters are in close contact with their customers through their laptops and mobile phones. The computer is also used to buy from abroad via the clock. 

 

Purchasing via the Internet is not an option yet because the response time on the web cannot be fully guaranteed at the moment. However, Dirk is quite sure it is only a matter of time before this technical problem is solved. Despite all kinds of technical innovation exporters and traders will continue to be present in person in Aalsmeer. Pushing the button is by no means the end of the business. Packaging, paperwork, transport – there are still a lot of things to do before the flowers arrive at the facilities of the wholesalers or florists. 

 

Trial purchases

All kinds of specialists and businesses involved in transport and logistics can be found at the auction. It is not without reason that it is the world’s largest trade building, covering an area of more than a 10 million square feet. Dirk: "It is quite literally a huge business. Despite this however, there is nothing to stop buyers from buying small volumes. This is attractive for the American market.  Despite the expensive Euro, the American market is still one of our top ten most important customers. 

 

American florists are mainly interested in flowers from bulbs, particularly high quality varieties and novelties. These are not flowers that are bought in great volumes. Sometimes they only want a few bunches to test the reactions of their customers to the products. The system is still ideal for this purpose, as it was in the early years – almost a century ago. In those days traders left here with their purchases on their delivery bicycles or took the train home, carrying a couple of baskets of fine fresh flowers." 





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