Just as there are many types of poker players, penny auctions also bring forth different styles of play. Some players are aggressive and will pursue the win until the bitter end, spending just as much as the product is actually worth. Other players will only put in a token effort and back away once competition becomes rough. Learning how to identify these different types of bidders will help you to adjust your own penny auction strategy and save even more in the process. The following list compiles the most prevalent types of penny auction regulars. Be on the lookout for these traits.
The power bidder will win an auction, even if it means spending more than the item is actually worth. Why would power bidding ever be a good idea? Well, in most cases, it isn’t a good idea. But if you plan on being a regular customer at a single site, such as BidRivals or BidCactus, power bidding can help you to establish a solid reputation as someone unwilling to back down. If you employ this strategy, you are hoping that it will scare away bidders at future auctions. Power bidding can be dangerous for inexperienced or arrogant bidders as things can quickly become an ego match where the bidding is more about winning at any cost than about getting a good deal.
Last Minute Shopping/Conservative Bidding
The conservative bidder wins auctions by spending as few bids as possible. This type of strategy will often see a losing result, but when this type of bidder does win, they win with huge savings, thus justifying all of the losses. The strategy behind this type of bidding is to wait until the bidding is down to only a few bidders before entering, and then only bidding a few times at the last second. In other words, you are letting other bidders use up all of their allotted bids before you even enter the bidding. This is a sound strategy for many different bidders, but you need to beware of others employing the same strategy. If they have more patience than you, you will probably not win the auction as they will wait until you have used the bids you allot for this item.
Full On Assault
This type of bidder makes their intentions known early on in the bidding. They are not afraid to use their bids early and often. This strategy can have a similar effect as power bidding, only not as lasting over the long term. The assault style of bidding lets other bidders know that you are serious about a specific item and will spend the bids to win it. The idea here is to make sure people know you want to win, and then don’t relent. This strategy is good over a single auction but does not have the lasting effect of power bidding. Be careful that you do not use too many bids as this is just a waste of money since you are not creating a lasting impression. While usually effective, this strategy can backfire if you are not careful.
The auto-bidder works just like a robot would bid. In fact, some sites even have built in software that you can use to do your bidding for you in the event that you are away from your computer for an auction. This method has a set number of bids and a maximum target price. Once one of these thresholds is surpassed, you simply quit bidding. This is the most basic way to plan out your bidding and will give you consistent results at a moderate price.