For example, a few weeks ago, Quibids had a promotion offer selling a car. That's right, it is a big deal! Quibids put its market value at $20,000. The car was Honda Civic Coupe LX. This is the auction page screenshot after the winner was declared.
As you can see, the item sold for $1740.78, which is a significant saving for the winner. Unfortunately, there is only one winner and everyone else loses. In any auction, there are only two winners - the auction winner and Quibids!
Lets us calculate how Quibids rakes in the money through these auctions by doing a simple calculation from our side.
The auction is a 2 cent auction, and the total value the car sold at is $1740.78.
Thus the total number of bids placed by all Quibidders is 174078/2 = 87,039.
Total revenue for Quibids from this auction = 87,039 X $0.60 = $52,223.4
Total profit for Quibids from this auction = $52223.4 - $20,000 = $32223.4
From a single auction, Quibids has made over $30,000 in pure profits! Quibids claims a small revenue, but really, I am sure they rake in the moolah. The company wants to be open but is surprisingly closed like most other penny auction sites. Quibids is not an outright scam but if a company makes so much money at the expense of its customers, it is something to pause and ponder about.
Now, let us see how much all the Quibidders except the winner, merkmerk, have lost.
Total number of bids placed = 87,039
Bids by the winner = 2,044
Total bids lost = 87,039 - 2,044 = 84,995
Total value of lost bids = 84,995 X $0.6 = $50,997
Thus, in this single auction, all Quibidders combined lost over $50,000! Unbelievable, but true. Quibids and other penny auctions seem to be worse than gambling, where even compulsive gamblers will have a limit to their losses.
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