Welcome To Penny Auctions Reviews
You can save a lot of money using penny auctions and get brand new, high quality products. With a growing number of websites there is a need for penny auctions reviews so that people know which are the best and why.
Everyday people are saving hundreds and thousands of dollars on items that are as great as cash certificates, super bowl tickets, new cars and much more. It is certainly a good idea to become familiar with them since you could buy a $3,000 MacBook Pro for about $200 or a $40,000 2011 Ford Mustang for as little as $5,000.
What? How do they make the prices so cheap? Do they buy large lots of merchandise and get a deep discount or what?
The company doesn’t get a discount that cheap. It all has to do with the way the Penny Auction operates. That is the information that we will cover now.
- A penny auction will start with the price at one penny for example.
- Then the timer starts to count down
- Once the timer gets to 15-20 seconds on the clock (they vary from auction to auction) the time will start to flash red.
- Many times you will see the timer get down to 5 seconds and then jump back up to 20 seconds
- What has happened is that someone has placed a bid in the last 5 seconds, which puts the timer back at 20 seconds. As long as someone is there waiting to bid it will keep going back to 20 seconds.
- To win the auction you need to be the last bidder when the auction ends. Then you get the item for the cost you see, which is typically substantially lower than the actual cost of the item.
- A good question is how does a company make money selling stuff so cheap.
- It all has to do with the cost of the bids that people are using to bid on items
- Bids can cost anywhere from 60 cents to one dollar.
- Remember when you see the cost of something on a penny auction, say $12.75, that means that there have been 1,275 bids on the item.
- If you do the math you will see that the company sold 1,275 bids at 60 cents meaning that the company has made $765 selling bids.
- So if the item up for auction was a sleeping bad worth $150 you would be happy to win the auction for even $40 or $50 but the company has still done well.
- The penny auction is a model in which people can save a lot of money and the company can afford to sell great things at ridiculously low prices
You will find information on this blog about the most popular penny auctions that are on the Internet. You can find a page with charts that show you which penny auctions get the most traffic on a monthly basis, see the chart here.
We will report about the different companies and when we are made aware of some good or bad things happening with any of them we will report it on our site. Some of you may be interested to know that some of these penny auctions offer you the opportunity to advertise for them and make some extra money. The best one for this is the Zeekler penny auction, run by Zeek Rewards, you can learn more about them at this link and watch a video about the company.