What’s a penny auction? Well, which means that you can bid on items by 1 cent increments that will be obviously within anyone’s budget. No wonder that Quibids, Beezid, and the likes, have gathered record amounts of customers in a short timeframe. The main reason for this uprising might be that if you win with your penny bid, you will end up saving about 90% on new retail items such as for instance Apple iPads for $20 (retail is $500 and up), Samsung LED 55″ flatscreen 3D TVs for $60 (retail is $2,000), etc…
Although it seems too good to be true, it’s very real. The bidding sites actually bring in much more money than what they spend on the brand new items. This is because customers have to buy the proper to bid, on Quibids, an offer of 100 bids is worth $60, that’s 60 cents per bid. So if you placed one bid and won the iPad at $20, you’ll actually spend $20.60 on the item.
No big deal right? Let’s crunch the numbers. First, let’s note that unlike eBay, these sites do not have an absolute end time on auctions, each time a product is bid on, time is added to the clock. The auction ends when nobody posted a bid for say, 10 seconds. That basically ensures that everybody has exactly the same odds to win the item. On that note, let’s take the example of the iPad that went for $20. Starting the auction at $0, it took an overall total of 2,000 1 cent bids to have there. If you bid once, the probability to win this auction is actually 1 in 2,000. Obviously, แทงหวยออนไลน์888 you are able to boost your odds by bidding several times, 100 bids gets you to 1 chance out of 20 however you will then have spent $60 + $20 with a 5% chance to have the item. Meanwhile, the web site will receive 2,000 times 60 cents for the item no real matter what, that’s $1,200! Since the item costs them only $500 and the auction winner will still have to pay the ultimate $20 bid about it, the web site could make a staggering 144% profit! This is true on every item, everyday, with the minimal infrastructure that comes with an online business.
It is truly a mystery why such methods are legal because in the event that you sum it up, all they’re, are online lotteries. Bids are bets and your odds depend on the cash you spend. It’s very important to the “customers” to appreciate that the dollar value of a product that’s bet on doesn’t represent anything, it’s just a trick to attract more folks and lead them to believe they will receive a good deal. In fact, you are able to neglect the status of the “auction” and just consider it as a lottery for which each ticket is worth 60 cents. By the end of the afternoon, you are able to either get lucky, leave, or get caught in the loop and keep playing the odds. Very much like at casinos, you will find yourself losing a lot more than what you are winning. My advice: test it a few times, then head to your retail store and pay face value…