Saturday, April 14, 2012

Limboauction Review: An Exciting New Penny Auction

This Limboauction review covers the basic working and concept of the site and what I think about this penny auction which has quite a new and innovative model.

Limboauction is not a typical penny auction (like Quibids) and in fact belongs to a class of penny auctions that are becoming popular by the day - timerless penny auctions. These penny auctions do away with the timer completely. However, Limboauction isn't even a regular timerless penny auction (which is usually a reserve price auction, i.e. a price is set and hidden for each item) which makes it all the more exciting.

How Does Limboauction Work?
The Limboauction works is that in any given auction, the price keeps dropping from a high value, which is near the retail price of the item. At any given point in the auction, any bidder can place a bid and immediately in the item. That's it. It is simple and elegant. Let us take a deeper look.

Consider the auction shown below. The retail price of the product is $50. The auction starts at $45, which is already a discount of $5, which is great. However, this isn't all. When the auction begins, the cost of the item keeps dropping. This means from $45, it goes to $43 and then to $40, then to $35 and so on.




The bidders are all watching this, and they can jump in at any time they want. Once they bid on a product, they win it at the price that is currently being shown.

More about how Limboauction Works
Here are some more characteristics which are interesting and good to know to the bidders -

  • There is a limit on how many bidders can participate in an auction. This is good for the bidders because as the site grows in popularity, you don't want hundreds of bidders on a single auction. For example, at Quibids, a typical auction typical attracts several hundreds of bidders over the life of the auction. Here, you are limited to a given number. Currently, it appears that there are 6 bidders at most for an auction. For obvious reasons, a minimum of two bidders are required for any auction. 
  • You pay for every auction you enter. The losers 'subsidize' the winner's earnings, but you can use clever strategies and outsmart your competition. 
  • The auction time isn't ridiculous. If you look at traditional penny auctions, some auctions can go on for over 24 hours! Here, every auction will end in a few minutes, and this keeps the excitement level high - the whole purpose of penny auctions in the first place. 
  • Being an early adopter on this site seems to be highly beneficial, before bidders can come up with competitive strategies that will eat into the overall profit that bidders derive from the auctions. 
My thoughts on Limboauction
I personally like the concept of Limboauction and see a good potential for growth. From a bidders point of view, I think joining in early is a good idea before the site becomes more popular with different bidders. 

Devise your Limboauction strategies with care. Obviously you want to win the auction but you also want to make sure you get a good discount on the product. Don't swing to either extreme, which is another way of saying don't be too greedy. 

As with any penny auction, I would advise you to bid only on items that you really need. If you live in a small town in Idaho where the nearest Starbucks is 5 miles away where you have never been and don't understand what the hype is all about, ask yourself if you really want to bid on a Starbucks gift voucher. Perhaps, you should wait for a Lowe's gift card which might make more sense. Think of what auctions are worth the money you invest in the initial fees to 'join' the auction. 

Check out Limboauction today and don't forget to share your thoughts about it. 

1 comment:

  1. Stop ewe sing spell chick. You're pair a graph copied bee low has an incorrect word witch leads two a nonsensical sentence.
    How Does Limboauction Work?
    The Limboauction works is that in any given auction, the price keeps dropping from a high value, which is near the retail price of the item. At any given point in the auction, any bidder can place a bid and immediately in the item. That's it. It is simple and elegant. Let us take a deeper look.
    Should read: any bidder can place a bid and immediately WIN the item.
    You're well come.
    Ron

    ReplyDelete