Seller Valuation

The seller valuation sets the quantity of bandwidth available in the marketplace and the minimum price at which it will be sold. In an auction, your agent uses this valuation information to determine what quantity can be sold and the floor price.

Select the “Current Valuation” radio button label at the top of the window. The valuation must be active for the Seller valuation to take effect. The green arrow in the menu indicates the valuation that is currently active.

Two configurable parameters determine the auction parameters.

• “Qty” sets the current quantity for sale in the marketplace. Your agent offers all this bandwidth to the buyers.
• “Value” sets the minimum amount of money you are willing to accept for the entire “Qty” of bandwidth—the floor price.

Changes to either one of these values take effect immediately.

Floor Price

The floor price is usually refered to as a price per unit of bandwidth. The per-unit floor price is the “Value” divided by the total “Qty.” In the illustration, the floor price is 45 Mbps/$4,500 per month, or $100 per Mbps per month.

Under certain conditions you may not sell all the bandwidth you are offering. These conditions include the following:

• You have bought back bandwidth because of insufficient demand at the floor price using your own buy-back agent.
• All buyers have specified a maximum amount of bandwidth that they wish to buy, independent of the price, and the total amount is less that the amount you are offering.

If the first condition occurs, you should consider whether your floor price is too high. If the second condition occurs you need to find more buyers. If demand on the Reservation market is high and the second condition occurs, you might consider having your Merkato administrator transfer bandwidth from the spot market to the Reservation market.