How Penny Auctions Can Save Consumers Money
In today’s tough economy we all understand that saving money is at the forefront of everyone’s agenda. Penny Auctions are a great way to do just that. Penny Auctions are platforms that allow consumers and bidders to be able to participate in online auctions and get discounts up to 99% off retail prices.
There are many popular Penny Auction websites currently on the market such as Quibids.com, FrogeeBidz.com, Beezid.com, and a variety of others. This types of websites offer consumers a little bit of everything from Gift Cards, Electronics, Home Goods, or even automobiles, and they are all selling for over 80% off retail prices.
How do Penny Auction Websites Work?
Well, they work just like any other auction or auction platform, you bid on an item, the price of the item goes up, and the last bidder of the auction when it closes wins the auction. Now the thing that is different about Penny Auction websites is that instead of the price going up by say $10, $15, or $20 per bid, the price of the item is only going up by one PENNY, that’s right only one cent.
For example, let’s say you have five bidders and each of them are taking turns bidding on the auction and each of them bid 5 times, then you the price of the auction will only be at $0.25 when all the bidders are complete, and if you are the last person in that bid war, then you will only pay $0.25 for the item.
How do the actual auctions work?
There are several different types of Penny Auction sites on the market today, some are timer auctions, and some are reserve auctions, and some are a hybrid of both reserve and timers. Let me explain a little bit more about how each type of auctions work:
Timer Auctions – These type of auctions start at a set time that is determined by the website, and they count down until they reach zero, once they reach zero then the auction is over and the last bidder wins the auction. Now, understand that every time a bid is placed on these sites, the timer gets some time added back to the clock, normally around 10 seconds.
Reserve Auctions – Now, reserve auctions work a bit differently, they have no timers going, they list a range for the item such as $0.01 – $1.00 and the winning reserve price will be set somewhere in that range, if you are the bidder who hits that reserve then you automatically win the item.
Hybrid Auction – These work in conjunction with one another, these auctions normally have a reserve price and then once the reserve price is hit, some sort of timer begins counting down.
No matter which type of site you are bidding or playing on, with the right type of strategy then you will be able to save HUGE amounts of money on a variety of different products.
Special thanks go out to FrogeeBidz.com for providing us with all the research and understanding on exactly how Penny Auction websites work and operate.