1.
These websites buy the items from warehouse closeouts
and overstocks.
2.
Consumers buy bids for $.50 to $1.00 each.
Usually websites have deals like 100 bids for $60.
3.
Consumers bid on an item and this usually
increases the item’s price by $.01. When a bid is placed, the consumer is
penalized by a time delay, usually 10 seconds before they can bid again.
4.
At the end of the auction, the person with the
last bid wins the item.
Do you think what you have what it takes to win a penny
bid?
Many people have strategies in which they believe helps them
win penny auctions.
1.
Some bidders place a large bid at the beginning of
the auction to deter other bidders and show they are serious about the auction.
2.
Other bidders place a large bid at the end of an
auction, usually when other bidders are out of money.
3.
You can also watch the timer closely to time
your bidding and have auto bid work for you.
Whatever method you chose, know the risks associated with
penny auctions. If you don’t win the item, you do lose money. This is different
from traditional auctions and eBay. So weigh in, would you be willing to lose
money for the chance to win a fabulous prize at a highly discounted rate?
By: Tracy Harper
Penny Auction Websites:
Sources:
I think this is far to close to gambling to be a way to frequently purchase items. The fact that the items might come from second hand sources does not inspire confidence in the quality of what you are buying. Then there are the risks of the biding processes it self. This article sums it up nicely.
ReplyDeletehttp://usatoday30.usatoday.com/tech/columnist/kimkomando/2011-05-13-komando-penny-auctions_n.htm
I agree there are great risks associated with penny auctions, and they are successful, thanks to people with gambling addictions who get a rush from the quick bids.
DeleteI don't think that I would bid on a penny auction unless I knew I had a high chance of winning the item in the end, but I am sure that it takes practice and a developed strategy to know when you have found something worth bidding on. In my opinion, I would rather try ebay where I know if I don't get the item, at least I still have my money.
ReplyDeleteI believe that is why eBay is more of an attractive option as opposed to penny auctions, but there are people out there who like gambling and are willing to take the risk simply for the thrill involved.
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ReplyDeleteI would probably look at other items and see the average price they are selling at, and then not bid until they reach that price. Especially if there are many similar products. You have to keep in mind that the other person is spending a LOT of money to keep bidding, so I am more willing to keep bidding if I wait until the very end to place a bid.
ReplyDeleteThat would be my strategy as well!
DeleteI would not participate in this sort of selling. It seems too "schemey" for me. I feel that even if you got a good deal on an item, the other items you didn't win would quickly offset the bargain value you just obtained. There is a reason these sites are in business, they are not doing charity work. I can see them sitting at their desks with big grins on their faces.
ReplyDeleteI'm with Alex on this one. I don't trust these sites because it does seem like a scam to me. The way you bid on an item and don't get that bid back, and thus both you and another bidder are just giving away your money to the company in hopes that you might win one of their products. If I wanted to gamble I would go to a casino.
ReplyDelete