Does bidding on a penny auction site scare you? A lot of people have been asking us about the risks associated with penny auctions. Here are a few issues we found when dealing with penny auction sites.
The Risks of Betting … and bidding.
The house gets rich. Of course in the end the house must always win – whether it’s in total number of bids, or the number of products sold. You should keep this in mind when bidding. Don’t overbid for a product you can get for cheaper elsewhere. Maintain your strategy.
Power bidders will cost you more. Most bidders will bid aggressively, ultimately driving up the price of the item and pushing the other bidders to improve their price. This usually results in two victors – the winning bidder and the house.
They promise you the world, times two. If you’ve ever seen an ad on TV for a penny auction site, you were probably stunned by their promise of 95% off retail prices. Although this is possible, it’s very unlikely. Be media-literate and understand that their goal is to pull you in, just like any other ad for any other service.
Overall, make sure you always bid smart, start small, and only bid in “buy it” auctions. Penny auction websites can be dangerous in terms of the amount of money you mindlessly invest. As long as you’re smart about it, and only use reputable penny auction websites – you should be okay. Happy bidding!