Quibids loves selling Macbooks, HDTVs, iPads, etc. Ever wonder why that is the case? Quibids is the largest penny auction site online and makes tens of thousands of dollars each day. It does have a number of small ticket items like gift cards. However, you can see of late that there are increasingly more and more big-ticket items. Did you ever wonder why?
Well, the simple reason is they bring in more profit even when they sell for a huge discount. The main reason for this anomaly is the Buy It Now feature of Quibids. Quibids provides this option so theoretically no one loses money bidding on the auction as they can use the money spent towards bids in a lost auction in purchasing the item at its full retail price.
This is easy for a $10 gift card - if you spent $6 in bids and didn't win, it makes sense to invest $4 more and get the card. However, if you are bidding on a $1400 macbook and lose bids worth $120, I am sure you won't jump and buy it at its full retail. This is the case with most bidders.
Consider the recent Apple Bundle worth $4000 being auctioned on Quibids. The auction will attract hundreds of bidders. Not even a handful (I doubt if anyone will) will ever buy the whole bundle by paying $4000. This way, all the profits made by Quibids go into its pocket and it doesn't have to worry about cuts in profit through the Buy it Now route.
This is an excellent strategy being employed by Quibids. It can afford to do this because they are really big and they will always get customers bidding on these big-ticket items. Unfortunately not all penny auctions can replicate this model because they are not so big. Simply put, Quibids will only grow bigger and bigger each day.
If you are interested in bidding on the big-ticket items, check out my post on Quibids strategies for winning big ticket items. This will be immensely beneficial to maximize your winning chances. Also, don't forget to subscribe to the blog so you can get regular updates.