For bidding on penny auctions, we added a very specific auction strategy. First, we only will bid on items with good resale numbers. This includes precious metals and some of the higher end technology items. Next, you need to research what prices these items actually sell for. Averaging all of them together to find an average sale price is helpful, but it is even better to look at what time they sell at and factor this into your bidding. There are different people who bid at different times of the day. This means that some times of the day will see more bidding than others. Ideally, you want to bid during the hours where the product will sell for less. This might seem obvious, but many people overlook this or don’t do the research to actually know.
Next, you want to wait and find the product that you have in mind. This is where the waiting comes into play. You never want to bid on an item below that average price for the given time. This will ultimately lead to you not placing a bid on about half of the items—but don’t worry. If you don’t bid, you don’t lose money, only the opportunity. And in the penny auction game there are plenty of opportunities to seize. Money, on the other hand, is limited. Once the price gets to about 5 to 10 percent over the average price, you will begin bidding. If there are still many bidders, you will obviously want to wait to the higher end of that range. Then you want to start bidding. By this point in the auction, many people will have dropped out. And that’s good for you, especially if people notice that you are just starting to bid. This gives you a huge advantage over the current leader, but you do need to ensure that the current leader has fought to get where he is. If they are just entering the bidding, you will want to pass until they have invested a good deal into it. This makes watching and monitoring the bidding history very important.
While it’s true that you will pay a bit more for these items that you win, over the long run, you will make money because the idea is to spend as few bids as possible. This drastically outweighs the low prices that you might have been able to get, but would spend more on bids for.
Key Factor – You must do this with non BIN auctions. This is for auctions that don’t carry a credit or buy it now feature.
The next step is important if you want to make money. You need to find a reputable place to sell back your winnings. If you are bidding on silver and gold, have a good jewelry shop or gold buying firm in mind and make sure that you are getting top dollar. Again, this requires research on your end. If you are reselling tech items, try auction formats on eBay or similar sites where you can name a starting price to ensure that you don’t lose money on the resale.
The beauty of this method is that you can use it over and over again. If you put in the time you can make a good deal of money this way. Remember, patience is everything. Don’t bid on items too soon, even if this means you don’t place a single bid. You want to wait until you are almost guaranteed the win.