Anybody try penny auctions?

Discussion in 'Chit Chat' started by ChkitOut, Mar 12, 2011.

  1. Sites like and a bunch of others.

    Seems like the big ticket items are a losing strategy over the long term because for say a 1000 dollar tv, you have no idea if the item is going to go for 30, 50, 80, or 100 or whatever and so its hard to know when to start bidding.

    At 60 cents a bid, you can see how it could quickly become a bad bet.

    The lower end gift cards to me make sense, I see a lot of them going for 1,2 or 3 cents and so you have a good shot at winning a 10 - 20 dollar gift card.

    The big stuff is like winning a scratch off lottery ticket, thats kind of what it seems like.

    From the sites owners perspective though it must be fun making like 4800 bucks for a 1000 dollar item when it goes for 80 dollars. But they say they lose money on a lot of items also so their profit margins are about 5-10% which is still good.

    I'm watching an Ipad right now and its at 10.25, at .60 a bid, the website already made 615.00 for a 500.00 item because they go in penny increments. Who knows how long the auction is going to go on for, could end soon, or could go to 20.00, you just have no way of knowing.