Penny Auction Sites...use common cents!

So while killing time one evening I stumbled upon this ad for a penny auction site called Quibids.com.  So I registered and jumped in with both feet.  The concept is simple, every time you bid on an item it raises the potential winning price by $0.01.  You can win or buy bids.  Purchased bids will cost you $0.60 each.  So I bought a starter pack of bids and the site placed 45 bids in my account for $27.00  The hook is the site auctions off some pretty enticing wants, among them name brand electronics like big screen LED TVs, iPADS, laptops, wine storage refrigerators, blenders, watches, cameras, etc.

The model is the same for all the penny auction sites.  They dangle sexy items and advertises they were recently won for some nominal amount, say a 55" LED TV for $18.67.  Now a 55" LED TV has a retail price of around $2,500.  So the enticement is a strong one.  I had some early success.  I won a new 5" Garmin GPS with lifetime maps and traffic alerts for $2.82.  The cost of shipping was more than my winning bid.

I also won a paper shredder, and a weight scale.  All products won were received within a week.  At this point I thinking this ain't to bad.  However, be forewarned these penny auction sites have a gambler's appeal to them.  If you're going to bid on one of the sexier items, you'll need to be discipline enough to know when to bail out.  It's quite easy to get caught up in having your name appear on the screen as having the winning bid (if only for 10 seconds) only to have someone top your bid.  Some auctions can go on for 12 hours or more, so also bring your patience.

Of course the big winner in this is the operator of the penny auction site.  Consider for a moment that when a big screen TV sells for a winning bid $118.02, that translates into 11,802 bids at $0.60 each, or, $7,081.20.  So do the math, the penny auction site isn't giving anything away.  In fact, their profit margin is considerable.  So like drinking, be responsible when you bid.  Stay thristy my friends!