Penny Auctions

Online Penny auctions are quickly increasing in popularity. Since they first rose to popularity in 2010, penny auctions have become one of the hottest trends on the internet. And because they allow customers to get the goods they want at incredibly cheap prices, penny auctions are not going away anytime soon. Although they are a relatively new phenomenon, penny auctions give bidders an opportunity to maximize their savings on products that they need. Rather than paying full price for a new plasma screen television or a high tech digital camera, lucky bidders can now get huge discounts. In these times, getting the most for your money is a necessity. Penny auctions allow you to save big in this respect—if you know what you are doing.

Best Penny Auctions 2013

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How Penny Auctions Work

The way they work is quite simple: you pay a small fee per bid, and you are given the number of bids you paid for by the auction site. You can then use the bids on any listed products you wish. Each bid increases the price of the product being bid upon by one penny. Once the time limit expires, the bidding ends and the highest bidder is awarded the product at the extremely low price. Because bids only increase the product’s price by one cent, you can sometimes get expensive items for 95 percent off or more in some cases.

Penny Auction Scams

You need to be aware of the few sites that are out to scam you. While these sites are few and far between, they do exist. The thing to remember is that in online penny auctions, the final price is only a fraction of what you actually pay. Because you are paying for each bid you use, this price goes into the payment for the item by the auction site. The final price that is paid is much higher than the final price you pay. Each bidder is paying a fee for each time they bid—if this seems too good to be true, this fact accounts for that. Sometimes, the profit that the auction site makes is much higher than the actual price of the product you are buying. You do need to look out for real penny auction scams, but at the same time realize that penny auctions are not too good to be true since the sites usually make far more per auction than the price of the item up for bid. Penny auctions are competitive. You will lose more often than you win. This is part of the nature of the game.

Basic Online Penny Auction Strategy

Penny auctions necessitate a lot of strategy. Because you are not going to be the only one bidding upon these items, you need to make sure that you use your limited bids very wisely. Penny auction strategy is psychological in nature; you want to outsmart your competitors by bidding at a price that they will not go over, yet you want to keep the final price of the item as low as possible since you will be paying for each bid plus the final cost of the product. Since you are paying a per bid fee for each time you bid upon something, the simple truth is that you can lose money. If you don’t know what you are doing, this is almost guaranteed. This is why you need to know exactly what you are doing before you enter an auction. Having a winning strategy will help you to save money in the long term.

Many people have likened penny auctions to playing poker. You won’t win each time, but if you have solid fundamentals, you can be a long term winner. Like poker, the online penny auction game is largely psychological. Knowing what your competitors are thinking will help you. Penny auctions are a competitive game, and the better prepared you are for them, the better you will do. Instead of wasting money on losing bids, you want to be as prepared as possible for placing that winning bid.

With that said, there are several things you can do to make the few auctions that you will win more beneficial to you. One of the more effective long term methods is to enhance your reputation by bidding more on an item than it is worth. Why is this a good idea? You earn a Penny Auction reputation as someone who will not back down on future auctions. Rather than having someone fruitlessly bidding against you to the bitter end, future competitors will be more likely to throw in the towel earlier in the auction if they see that you have bid high in the past. Going a bit higher than you want for one auction can lead to lower prices on future auctions. If you plan to use this type of strategy make sure you use Beezid Promo Codes to give your account a little boost. This will help reduce your long-term risk.

Another strategy is to “cherry pick.” With this strategy, you wait until the auction reaches a high price and wait until the last second to submit your bid. This method preserves your bids, thus keeping your bid fees down as much as possible. The fewer bids you utilize, the better in this scenario. The bids are where the site makes their money; you want to let the other people in the auction do the work for you paying for all their bids while you pay as little as possible.

Discover the best penny auction sites 2013 and how you can get more bang for your bid.

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