Tuesday, May 17, 2011

Penny Auctions: When to Buy Bulk Bids

Many penny auctions provide bids in bulk. The most famous example is at Beezid where bids are priced differentially. This is contrast to penny auctions like Quibids where there is a simple flat rate for every bid. For example, at Quibids, every bid costs $0.60 irrespective how many you buy. This keeps accounting straight both for the bidders and the penny auction.

However, there are many sites that like to use differential pricing of bids. The way it works is that as you buy bigger bid packs, you get bids at a cheaper rate. This is used to promote their site, but should you, as a bidder, buy bulk bids at penny auctions?

There are some caveats that you should look out for. The first thing you should do is to look for the products at the penny auction. Are they interesting? Can you bid on these products and win many of them without getting into the "buying for the sake of buying" mode. One good way to look out for is to see gift cards at the site. If there are gift cards, you can win these to buy anything that you want.

Then, you should see if the penny auction is trusted. Very new penny auctions give great deals but you should be sure that they are legit. If they are not and they decide to close their doors soon after, it is really pointless to buy bids and lose money in the process.

However, once these issues are satisfied, you can go ahead and buy bulk bids, which will be a great strategy to reduce your overall costs and improve your overall profit from the penny auction.

Let me give you one example of a penny auction which has differential priced bids and where you should buy bids in the bulk. HappyBidDay is a penny auction that is much less competitive than Quibids and gives you great offers. They have ample number of gift cards like Amazon which you can win to purchase anything at Amazon. If you buy their smallest bid pack of 80 bids, the bids cost you $0.60/bid, as much as Quibids. However, if you buy the bigger bid pack of 225 bids, you get the bids only for $0.51/bid, which is a 15% saving right off the bat.

2 comments:

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