Auctions have always been popular, and the advent of the internet has done little to change this: they are more successful than ever before. Of course, as with most things, they do evolve. The latest in the evolution of auctions are the penny auction sites. These sites are extremely popular. This is because they offer everybody the opportunity to purchase premium products at knock-down prices.
Unlike the traditional auctions, each time a person places a bid the item price does not increase substantially, rather, each bid increases the cost of the item by a single penny. As you can imagine, this keeps prices very low. Even if there are a great deal of bids, for example, 10000, the final cost of the item is still very low - £100 in this example. The items are always premium products, such as iPads and Laptops, and for £100 they are a bargain. Incidentally, £100 is extremely expensive at the penny auctions; the usual final price of an iPad is between £2 and £10.
To participate at the penny auctions, you simply pay for a bidding package – these vary in price – and then place the bids from the package on any item desired. The bids are worth 1p each, although the cost of purchase for the bids is more than this and ranges from between £0.20 and £0.50 per bid.
Are the Penny Auctions worth the Risk?
Some people do not like the format of the live auction sites; these people prefer the more traditional formats because they feel that the penny auctions are exploitative. They are not, however, because they allow everybody to be in with a chance of winning – regardless of how much money they have. In the past, the person with the most money would always win the war; here, it is the person with the best strategy, coupled with a little bit of luck.
In order to win, therefore, it is important that you develop and implement a good strategy; you need to assess how other people play them game, and either emulate, or develop a counter strategy. You have to be fairly intelligent, then to win at the penny auctions.
Here are a few tips to help you on your way:
Take advantage of all promotional offers. Promotional offers give you the chance to get free bids. This means that the bidding wars cost you no financial risks. People can, and do, win by using promotional bids, and so they are well worth pursuing.
Play during off peak times. This is because there is less competition when there are fewer people on the site. The lower the competition, the less hard you have to try in order to win, and the higher your statistical chances of winning.
Bid for items that are less popular. Again, because fewer people will enter into these bidding wars, you are much more likely to win.