Penny Auctions Start A New Craze

By Author: Vikram Kumar
Total Articles: 9595
Comment this article

Almost everyone is familiar with the ubiquitous eBay and its online auction model of business, and the online auction giant’s success has spawned many imitator sites. The sheer variety of items available on online auction websites as well as the suspense and excitement involved in trying to outbid others for an item while paying the minimum possible makes shopping even more fun than usual for many people. Penny auctions represent a whole new style of online auction, however, one that promises even better deals and even greater excitement for bidders. What makes it so interesting is that when you bid on a penny auction, you are not actually putting up an exact price, but a claim to the item instead.

On regular online auction sites like eBay, bidders attempt to outdo each other by offering the highest price among all bidders, while still getting a bargain by keeping the price below the retail price of the item. The problem with this approach, however, is that since most people know the actual retail cost of the item, the winning bidder usually pays something that very closely approaches the actual price of the item.

Penny ...
... auction sites were developed as a means to change that, and offer bidders real bargains instead. Whereas bidders on regular auction sites bid the real price that they are willing to pay, penny auction sites make use of a bid purchase system. This system charges bidders a small amount for each bid, and allows bidders to purchase as many bids as they like. Each of these bids placed on an item raises the final price of that item by a single penny. This way, the final price of the item goes up slowly, such that the ending price of the auction is usually far below the actual retail price of the item, thus almost guaranteeing bidders an excellent bargain.

If that were the full extent of the bidding system, then it would be untenable. Bidders would simply wait until the last second before the ending time was reached and place their bids then. The twist, however, is that each bid extends the ending time of the auction by 10, 20 or even 30 seconds. This makes winning an auction a matter not only of timing but also of strategy. Each bid that you place gives other bidders added time to place new bids, themselves giving you added time to place new bids of your own, and so on until one bidder perseveres and wins.

So if you are tired of bidding on items and eventually purchasing them for close to retail price, or are simply looking to join in the fun and excitement that are penny auctions, then why wait? There are many penny auction sites that invite people to join and bid on auctions several times for free, as a form of trial. This way, you get to experience firsthand what all the fuss is about without even spending any money and you might also find yourself with a new hobby that doubles as a great way to bring home fantastic bargains and excellent buys.

Resource Box:

Penny auctions have taken the world by storm, with hundreds of thousands of people lining up to bid on the various auctions, and you will find only the best dining-related penny auctions on the dineoutforpennies.com site! For daily updates of penny auctions at DineOutForPennies.com check out their blog at blog.bidwineat.com