Theorem Revolutionizes E-Commerce with Dynamic Price Negotiation

Bringing Back the Art of the Deal to Digital Shopping

While many assume haggling belongs to ancient marketplaces or street bazaars, modern consumers mentally negotiate every day. We instinctively evaluate online prices, thinking “That’s fair” or “Too expensive”—often waiting for discounts before purchasing. Theorem, an innovative e-commerce startup, is transforming this internal monologue into an open, interactive pricing conversation.

How Theorem’s Negotiation Platform Works

Launched in 2014, Theorem developed a groundbreaking system that:

• Enables merchants to negotiate prices directly with consumers
• Focuses initially on locally-made apparel and accessories
• Allows buyers to name their price for products
• Aggregates consumer pricing data for merchant dashboards
• Helps small brands determine optimal pricing without complex market research

“Many exceptional small-batch brands struggle with pricing strategy,” explains co-founder Ryan Jackson. “Our platform facilitates that crucial conversation about value between makers and buyers.”

The Theorem Difference: Beyond Traditional Auctions

Unlike conventional auction models, Theorem’s system:

• Doesn’t automatically favor the highest bidder
• Avoids race-to-the-bottom pricing
• Incorporates elements of sophisticated negotiation models like:
  • The Goethe Auction
  • Becker-DeGroot-Marschak method
• Creates mutually beneficial outcomes for both parties

Technical Innovation Behind the Platform

Developed entirely by co-founders Ryan Jackson and Adam Roberts (both Y Combinator alumni) with a small intern team, Theorem represents:

• A bootstrapped technical achievement
• A novel approach to e-commerce infrastructure
• Proof that dedicated founders can build complex systems

The Future of Ethical, Sustainable Commerce

Theorem addresses critical industry challenges:

• Reduces waste from mass production and excess inventory
• Supports higher-quality, locally-made products
• Helps consumers understand true product value
• Potentially shifts e-commerce toward more sustainable practices

As the retail world grapples with overproduction and disposable goods, Theorem offers an intelligent alternative that benefits both merchants and conscious consumers.

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