Higher volumes per transaction

Auctioning slightly higher volumes per transaction will enable us to reduce the number of transactions during the peak period. This minor intervention in the auctioning process will help us achieve better end times for flowers and to deliver plants no later than 2pm on most days. The introduction of higher volumes per transaction at all export locations will allow us to respond flexibly to peaks and to shortages of staff. On a daily basis, the auctioneer considers the extent to which we need to deploy these measures. This therefore enables us to respond to the development of the peak.

Auctioneer ensures optimal pricing

The auctioneer’s role is crucial, as they monitor pricing. We know that small transactions are important for this and these will remain possible. We are just going to increase the prices a little quicker. The auctioneer determines the development of the purchase size, taking not only the volume but also the product group into account, and whether a bulk or a niche product is involved, etc.

Adjusted maximum percentage of Auction Presales

Since this will mean buying at auction will become a little less precise, there may be a shift to Auction Presales. We are therefore reducing the cap from 50% to 45%. If necessary, we will reduce it further in 5% increments until the desired effect is achieved. To avoid confusion, we will implement this measure across the board, making no distinction between days, locations, product groups and flowers/plants. Auction groups with B1-quality, A2-quality plants and the relocated/reauctioned auction groups will no longer be available for Auction Presales. These adjustments will apply throughout the entire peak period (April to June).

What will higher volumes per transaction mean in practice? Won’t we start off with minimum auction unit 1?

In principle, we will start off with the same minimum auction unit (’Keur’) as normal. Small transactions will remain possible, so small-scale buyers are still able to buy on the clock, which also contributes to correct pricing. But we will then raise the minimum auction unit faster. For example, instead of 10, we will carry out 9 transactions per lot. The auctioneer will decide for each product group how, and to what extent, higher volumes per transaction will be applied. Bulk products lend themselves better to this than niche products, for example. We will implement higher volumes per transaction on very busy days in particular. On quiet days, we will auction only slightly higher volumes per transaction or as usual. The auctioneer will keep a close eye on pricing and will remain in charge of the process.

Do higher volumes per transaction affect pricing?

We want to implement the higher volumes per transaction measure in a way that does not have a significant impact on pricing. To achieve this, we are going to start with a smaller minimum auction unit, so smaller buyers still have the opportunity to buy. The minimum auction unit will then increase in larger increments than usual. In this process, the auctioneer will keep a close eye on pricing. However, pricing of course also depends on other factors.

What does this mean for Auction Presales?

Since auction buying will become a little less precise for buyers, a shift towards Auction Presales may occur. We are therefore lowering the cap from the usual 50%. We will lower the cap as much as necessary, starting with 45%. If necessary, we will reduce it further in 5% increments until the desired effect is achieved. The lower Auction Presales percentage applies for the entire peak period. Auction groups with B1-quality, A2-quality plants and the relocated/reauctioned auction groups will no longer be available for Auction Presales.

For the sake of clarity, we will implement this measure across the board, making no distinction between days, locations, product groups and flowers/plants. We considered making an exception for plants, but that’s not a desirable option. Making an exception for Auction Presales of plants would result in even later end times for plants.

Can't the current 50% cap for Auction Presales just be increased?

It may seem like a good idea to increase the Auction Presales percentage to ensure that these products can be delivered earlier. However, this only applies to products that are order picked (flowers at Naaldwijk and flowers/plants at Rijnsburg); products that are still distributed cannot be delivered early. To maintain a level playing field across all locations, the decision was made to keep the Auction Presales % the same for all products and locations.