questionsare penny auctions really a deal ?

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I assume you mean those items on Ebay that start at 1 cent. I'm gonna say not a deal, since their prices change constantly. In addition, when posted here, I assume they will immediately skyrocket due to everyone bidding.

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Nope not those. If you google penny auctions you will see it. As I understand it you buy bids for .60 cents a piece. Then every time you bid the price of an item goes up by 1 penny. An average item has 5000 plus bids so the company more than pays for their cost and lets sy you used 100 bids you still only spent 60 bucks plus the 4 or 5 dollar bid cost to get something that was worth lots more. However they seem really difficult to win. SO therefore more often than not I spent 60 bucks and get nothing. At least thats what I understood.

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@abramokids: I don't think he means the ebay auctions. There are other auctions that start at a penny and each bid goes up by a penny. You pay up to $.60/bid so that if you bid $.01 more, it actually costs you $.61. And if you bid $.10 more, it may actually cost you $1.83 more (three penny bids and $.60 to make the proxy bids). Some of them also will extend the length of time of the bidding by between 10 secs to 2 minutes each time a new bid arrives in the last 10 seconds. So be aware.

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You sound like you're describing beezid, etcetcetc (there are others)

They are a good deal for exactly two people - the company running the "auction", and the person who wins the item. For everybody else (probably including you) they are absolutely NOT a good deal.

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Long answer: Back when they were first getting popular (before they had ads on facebook and elsewhere) I bought an ipod nano for 15$ and a ps3 (slim) for 65$ thats with bids and shipping calculated into it.

So you can get some money but it's hard and even more so now with postings everywhere.

Oh! and like winderful said the timer thing is a killer. At the time I won above items quibids didn't have a time increase so yeah =/ find one with out one lol so much easier to sniper bid it then.

Short answer: NO! unless you find one without a time increase and if you do let me know >.>

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@dosquatch: I totally agree with you on these auctions.

When I first heard of them, I thought "Wow, this could be great". Then I started looking into them and found out you had to pay to bid. The penny pincher in me just could not spend money on an item that I may not get.

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Wait so if it gets close to the end and people are bidding they just keep making it longer ?

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Not only do you pay for bids regardless of whether you win, some penny auction websites were recently investigated by several states and the UK for using programs to outbid people to drive up the price. Given the chances of you paying money to get nothing (I believe Florida was considering categorizing these as gambling for this reason), it's almost certainly better to just buy it.

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@djbowman: "Wait so if it gets close to the end and people are bidding they just keep making it longer?"

Yes. This, exactly, the auction extends indefinitely as long as there is activity.

Looking at Beezid, a pack of 100 bids retails for $70. There is, for instance, a 46" Samsung 3D 1080p television that "retails for $1699". At $.70/bid, incrementing the "winning bid" at $.01/bid, they break even at a winning price of about $24.00. Anything beyond that is gravy to them.

I saw a banner recently for a site that sold a brand new Camero "for only $1200!!!" If you run the math, the site nets about $60,000 after the price of the car. Outstanding deal for them, outstanding deal for the winner. So sad for everyone else who chipped in towards that $60k payday for the site. (more)

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This, if every bid placed is purchased at retail. They auction off bid packs as well. Right now, there's a 100 pack ("retails for $70") that's bid up to $22. If it sells, right now (and it won't, that price will climb), the site sells off that $70 bid pack and collects over $1500 for it.

So when people start using those, the site is collecting $15 per bid, and who knows what their profit margin ends up being on that Camero.

Is it a scam? It's hard to say that when they're open about their model. It is obscene? Yeah, kinda. Is it a bad deal? Oh, hellz yes it is.

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Really, it just makes me mad that I didn't think of it first....

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Ok so in answer to the question. There are better odds in vegas.

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I wonder, sometimes, with so many people willing to throw money at stuff like this, if I should toss my ethical qualms aside and build one of these sites. It would be nice to not have to worry about money... ever.

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Penny auctions are fun and if you win you can get great deals....but the worst part is that: for every winner there are potentially hundreds, if not thousands of losers. The alternative to penny auctions is getintoo where no bids are wasted and if your bids don't win you can use them again. bidding is closed based on volume and the lowest single unique bid wins.

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@getintoo: Your site intrigues me.. Not sure I understand the way your site works compared to the others but interesting.

Anyone else have opinions about this getintoo site? Seems to me you could just buy one small pack of bids and play it all year long or till you win. Kinda like a scratch ticket that keeps replenishing. If your into that sort of thing anyway.

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I was pretty skeptical when I first heard about penny auctions back in 2009. One site offered free bids for signing up, so I figured I would give it a try and I won a $25 gift card using free bids. With a bit of strategy and research I've now won over $10,000 in items. I've only invested about $3000 in purchasing bids.

Previous comments have summed up penny auctions pretty well, but the key is learning what items to bid on, at what time. It's also important to avoid certain bidders (known as "powerbidders") and sites that use fraudulent methods to drive up prices (known as "shill bidding"). http://pennyauctionlist.com hosts a list of safe penny auctions, as well as promo codes, tips, and strategies.

Penny auctions involve money, strategy, and chance so those who are interested in playing should understand that there's a risk unless you use a site with a bid to buy option.

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@iamjwal: I would look for the same thing that you mentioned before I would ever buy bids. Free enough to maybe win something small. This would allow me to test the legitmacy of the site.

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The Answer is: Yes

You can save money, it does take time to learn ho to win a penny auction.

I recommend PennyGrab.com Penny Auctions, it does not require you to have a lot of bids to win, because they do not use timers, you can just click fast and win.

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My sister just told me she just got some great stuff from the best penny auction sites. I have never tried one before but I'm curious as to what it's like. I think sometimes you get great merchandise by chance but it wouldn't hurt to try it out. http://www.pennywizard.com/