For a number of years people have been looking online to find their shopping bargains. Without a doubt many of the online retailers offer some great prices on their products and services. However some people are still just not quite happy with that, they want better products at better prices. This is due to our culture here in the UK, we are a shopping culture that demands a lot for as little price as possible. Although we are one of the first to complain when we see people working in poor condition, it is slightly hypocricital to say the least.
So to combat this, companies are costantly coming up with new ideas to get products for customers as cheaply as possible without impacting on quality or the company's profits. This is where penny auction sites stepped in. A penny auction site basically allows a shopper to sign up to there site and bid on a range of expensive luxury goods, this can range from televisions to cars. The idea is that for each bid the price of the product will increase by just one pence, and a timer will count down, anything from 20 seconds to a minute, if no other people bid in that time then the item is sold for its current price which allows shoppers to get the products for up to 98% off of their RRP.
This has allowed many people to get fantastic products are insanely cheap prices, for example one person won a brand new Mini One for just ?6. the number of items that are available on the penny auction site entirely depends on how popular the site is. The market leading penny auction site Madbid has roughly 20 to 30 auctions going at any one time.
So you may be thinking...what is the catch? Well that is simple, the catch is that to place the bid, you have to pay for your bids. So although the price of the auction only increases by one penny per bid, the cost to the customer is on average 20 pence per bid. This is where the companies make their huge profits, in the purchase of bid packages, these bid packages can range from as little as five pounds right up to 300 pounds. The problem with these penny auction sites is that they are incredibly addictive, and once you have placed a bid on an item people are very hesitant to let it go without winning. This creates a great deal of competition and therefore leads to bidding wars. People will sit there for hours, paying 20p per bid or more, placing bids every few seconds because they are determined to win the item. This is how the companies make their huge profits, because the total amount spent on bids will almost certainly always be greater than the value of the product itself.
The best idea is to come up with a strategy, be calm and collected, and only bid when you really feel that the auction may end.
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For more information about penny auction sites, check out the Madbid scam website.
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