Sunday, March 20, 2011

Quibids Can Make a Loss Too!

Quibids usually makes huge profits on big auctions. This is because they are coveted and attract many bidders who are willing to spend a lot of bids. In addition, very few would actually opt for the Buy-It-Now feature in these auctions. So here is an exception to this rule:

The Quibids Featured Auction of the Week was a trip to NCAA semifinals and champions game for 2. The package was priced at $3500.

For simplicity sake, let us assume that no one actually used the Buy It Now feature on this auction. I wouldn't suspect this to be far from the truth, but if someone did, then the profit for Quibids would be lower (loss would be higher).

For Quibids to break even on this auction, the number of bids required to be placed is 3500/0.60 = 5834. Thus the final price required for Quibids to break even on this auction was $58.34. However, the item was sold out for $30.67. This resulted in a loss for Quibids of $1660.

Quibids does make a lot of money in the long run, but it always runs the risk of one auction ending at a lower price than the break-even value.

About the auction itself, congratulations to the winner, mlouhux. The auction end seemed like a typical case of Volunteer's Dilemma (those who read my article on Quibids Strategy Volunteer's Dilemma will immediately recognize this scenario). The bidder Samsworld72 was caught in the volunteer's dilemma with wazzuuppp, who was using the Bid-O-Matic. Trying to save a bid in the process cost him the auction, as the Bid-O-Matic ran out of bids!

This also tells you that unlike other penny auction sites like BidRivals, at Quibids everyone has a fair winning chance, whether you use the automatic bidding tool (Bidomatic at Quibids) or not. The winner in this case was bidding singly instead of using a Bidomatic.

If you want to win auctions on Quibids, don't forget to read my Quibids strategies on this blog!

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