Penny Auctions

Is this worth the price.

This will be a very short blog.  As I haven’t bid on anything.  Nor do I know anyone who has.  You see the advertisements.  I won such and such for only $5.

I may be wrong.  So check it out yourself,  Let me know if you see this the same way I do.

This is how I understand it works.

1) Items you bid on will only go up 1 penny from bid to bid.

2) You have to pay for the right to place a bid.  I think it amounts to something like 50 cents a bid

3) If you win an item you remit that amount.  You will receive your won item in X days.

To put this on a local level we are more familiar with.  Say you go to your local auction house.  When you sign in and get your bid card, you will be asked how many times do you want to bid tonight?   I don’t know.  It depends on the item.  Then you are told it will cost you 50 cents every time your bid is accepted.  And we will proceed in 1 penny increments.  So you buy 20 bids for $10.  Now let’s say you open the bid for 1 penny.  The auction house has just made 50 cents on an item. The item is probably worth, say $30. If it is like most local auction houses there will be at least (for demonstration purposes) 5 bidders.  Yippee You Won it for only $20 dollars, but you used all your 20 bids. Guess what you just paid $30 for it.  But in penny increments,  I think (Mind you I’m no Mathematician, so I could have my figures wrong),  about 2000 bids.   It appears the to me the auction made about $1000.oo on that $20 dollar item.

One Item I looked was a $100.oo gift card.  The item was paused.  For reasons unknown to me.  But $4.66 for $100.oo gift card is a great deal.  However the Auction company has made $233.00.  So even if the Auction house paid $100.oo for this gift card they have still made $133.oo gross profit.

I don’t know how they secure the items, they sell.  But I imagine they sell thousands of items a day, and the winner probably does get a good deal, just like the advertisements say.  Provided they are wise enough to figure the timers, and when to bid.  Oh yes they have timers.  Usually set for 3 minutes.  (Anyway that is what I gathered from the site I visited to write this.  If no one bids during that 3 minute period the high bidder wins             I didn’t understand the PAUSE function though.

Any how as long as you understand how it works, go for it.  You might get a good deal.

That Is How I See It.

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