Penny auction sites they are popping up all over and making money doing it. The question is can you really win a IPad for like $19 or a big screen TV for $23? Well, were going to find out here and now so get a drink and why not a snack as well, if your going in the kitchen anyway.
All of a sudden you see ads on TV for these penny auction sites where you can win all kinds of great prizes for next to nothing. It makes you really want to say WOW! that’s great let’s do it.
But, let’s find out if a penny is really just a penny.
Is A Penny Really A Penny?
In the real world yes a penny is still worth one cent, but in the world of online penny auctions a penny can be worth anywhere from fifty cents to a dollar. This is how it works, you go on the site then you buy a package of bids.
For example on Deal Dash you can buy anywhere from 60 bids up to 1000 bids for 60 cents a bid. Now they usually have a Begginer Bid Pack for people that never bought or used Deal Dash and you can get 155 bids for $20.
So what have we learned so far that in most cases a penny actually equals 60 cents. Tell me you wouldn’t want to have that big old jar of pennies that was stuffed in the back of Grampa’s closet now!!!
What Do You Do With The Pennies Worth Sixty Cents
You find a product you want to bid on, once you do the bidding starts at zero. Once the bidding starts the clock is set for 10 seconds, as soon as someone bids higher (Only a penny a bid) the clock resets back to 10 seconds and so on.
Remember, the bid only goes up a penny at a time. So the bidding continues until the 10-second clock runs out, once the 10-second clock runs out. The person with the highest bid wins the item, and has to pay whatever the final price is to receive that item.
So, here is an example: You’re bidding on a big screen TV the bidding ends and the price on the board when the 10-second clock runs out is $32.57. You pay, in this example Deal Dash $32.57 and they ship you the TV via FedEx or UPS most sites don’t charge for shipping.
Let’s look at this example a little closer up. The item sold for $32.57 that’s 3,257 bids at 60 cents a bid so in reality that TV just sold for $1,954.20 plus what the winning bidder has to pay $32.57 for a Grand Total of $1,986.77.
So let’s just say the winning bidder had to bid 120 times to win, they would pay 120 times 60 cents that’s $72.00 plus the final cost of $32.57 for a Grand Total of $104.57 now that’s not bad for a Big Screen TV. But what happens to everyone that bid and didn’t win.
Well, you are given an opportunity to buy the same item for what they say is the actual retail price. Actual retail price but that price is set by the bidding company so you can imagine what that’s going to be. But they are nice enough to give you your bids back if you buy the item for their actual price. Well that’s big of them.
Penny For My Thoughts
Let’s just say you are lucky enough to win one of these deals, how many did you bid on before you actually won? This is nothing more than gambling, hay it can be fun the thrill of the chase and all of that. Just remember one little thing when you’re gambling…
THE HOUSE ALWAYS WINS!!!
Things To Watch – Keep Your Peepers Open
- Check out the site see if they are reputable – Do a search for the companies site see if there are any complaints, check the BBB see what they have to say. Never bid on a site if you can’t find any contact information, at least a phone number and address so if you have a problem you know who to contact.
- Make sure you know all the terms and conditions – Read the fine print we are all too much in a hurry but, to spend your hard earned money without reading the fine print is not a good idea. Find out if there is shipping and handling. On a big screen TV it can be huge. Watch an auction to see how things go before you jump in.
- Like I said it’s gambling – Make sure you are prepared to lose!
- You need to commit time – On most popular items the auction takes a long time, sometimes hours or even days. Once you start and auction you have to commit to it.
- Know the price of the item – Make sure you do your research know the price of the item on amazon or at your local retail store, Especially when doing “buy it now”.
- Have a limit set – Set yourself a limit, don’t just keep bidding and bidding. When you get to your limit stop and shut the computer off or at least close the window.
- If you have a problem, report them – Don’t be afraid to turn them in for unfair business practices. You can get a hold of The Federal Trade Commission or Attorney General.
Final Thoughts – Sometimes Winning Isn’t A Win
Like anything else you have to use your head. There are plenty of these sites you should just walk away from. Pay attention and make sure you are reading all the fine print. Make sure when your read the product description you know if its the newest model or last years model.
Make sure you know the real price of the item you are bidding on. If, you go to high by bidding too much you could spend more than if you just went out and bought it.
My advice to you is to save your money don’t buy bids just wait and save your pennies (no pun) and go buy the item yourself. Amazon has great prices and your going to be better off in the long run.
Check out the price of this TV, just click the on the TV it will redirect you to amazon so you can see.
Please leave your thoughts below, I love to here from my readers,
All the best,