Penny auction is one of the most cunning selling ideas I have seen. It exploits the greed of buyers in finding exceptional deals and their willingness to take risks in exchange of the deals. The way penny auction works is basically letting many auction losers pay for the triumph of the winner. I think some might find the action enjoyable even though they do not end up winning. It is ok if you can somewhat keep your drive of contention in check.
The business model makes extravagant deals attainable, especially for very hot products such as Apple iPad, Apple MacBook Pro, MacBook Air, Samsung Galaxy, as well as some other expensive items such as large-screen LCD TV. In order for penny auction sites to be more rewarding, they want as many bidders as possible. Popular items help to attract bidders. High-priced items also denote more potential in money saving and supposedly are more beneficial to penny auction participants. Apple iPad and Appl MacBook are obviously no-brainers when it comes to recognition. This can be easily seen in Google keyword tools search volume.
So how good are the deals? Clearly, each final bid is different depending on contest of the bidders. Every now and then there are more bidders. Other times, bidders are more aggressive. Some auction lasts more than a day. So penny auctions can be both emotionally and physically exhausting. According to summaries from pennyauction007.com, Apple iPads are regularly sold around $30-$50. How is that for a deal, comparing to retail price in the ball park of $500 or more? Apple MacBook Pros are many a time sold from $50 to $100, comparing to the retail price in the range of $1500 or more. Of course, you have to have good understanding of the penny auction game before you participate. The total you pay, as the winner, is not just the final bid. Every bid you have placed costs you money. It could be a hazardous game if you do not play carefully.
Depending on penny auction sites, some of them offer so-called buy-it-now which let you get credit from your losing bids. Commonly speaking, the idea is that you do not walk away empty-handed. In lieu you get to buy it for the retail, or often a pre-set price which can be higher than retail. I guess you can consider that a penalty for taking risks.
No matter how you participate in penny auctions (with different strategies), studying bidding histories can be helpful. At least you have some ideas about how long the auctions can last, and how much money you are willing to risk. You certainly have to study the special rules of the penny auction sites that you are going to register on. Penny auction is a concept, but details of rules can differ. For example, each site can have different cost per bid. Cost per bid can also penalty depending on the size of the bidpacks you buy. Obviously larger bidpacks give you some kind of “wholesale pricing.” Penny auction sites definitely want you to buy and use more bids. So they lower the cost per bid by selling large bidpacks. Detailed comparisons can be found on Penny Auction Sites.
Penny Auction Sites