Starting Out On Your First Penny Auction

By Author: Vikram Kumar
Total Articles: 9478
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If you have just discovered the existence of penny auctions and are looking to get your feet wet with your first penny auction bid, you have joined a large and growing community of people who enjoy the competition and bargains that penny auctions offer bidders and customers. It might seem daunting at first, especially if you have never even bid in regular online auctions before, but rest assured that learning to place penny bids is not a difficult process and you will soon be bidding and, hopefully, winning.

Some people start out with the question, why bid on penny auctions? The answer is quite simple. With penny auctions, you can get items at a mere fraction of their normal price if you bid smart. It is not uncommon for bidders to win items that cost a few thousand dollars for a few hundred dollars, and there are stories about frequent winners who have stocked entire homes with items won solely from penny auction sites.

Many sites have a portion of auctions that are reserved especially for beginners. These auctions are only open to those users who have never won an auction before, and allows you to dip your feet ...
... in the pool without having to jump straight into the deep end. Beginner auctions wills allow you to test the strategies that you might have read about and also to develop your own. The items in these auctions are generally items of lower value, thus ensuring that more experienced bidders will not find some way to participate in these auctions as well.

You also need to develop a firm understanding of the bidding tools and features of the site that you are using. Some sites offer auto-bidding tools, which will place bids for you automatically within certain parameters that you can set. For example, you can set the tool to place a maximum of 30 bids towards the ending of an auction. This is particularly useful if the ending time of a particular auction does not coincide with your regular waking hours or conflicts with your working hours.

You also need to realize how your eventual cost should be calculated. Too many people are simply fixated on the final price of the item, and fail to include the cost of the bids. With penny auctions, each bid costs money, and at the end of the auction, you have not actually own the item itself, but merely the right to purchase the item. So when you are considering whether to bid on an item, remember that you have to calculate both the eventual cost of the item and the cost of your bids.

The concept of the penny auction really has revolutionized the online auction industry, and many regular auction sites are scrambling to keep up with penny auction sites. Due to the low-cost nature of penny bids, customers are happy to place many bids on a single auction, in the hopes of winning an item at a price far below retail, and the competition generated by this style of bidding also generates a great deal of excitement, making for a very enjoyable process even if you do not win.

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Getting started on your first Penny auction can be daunting, but once you have placed your first few Penny bids , you will see for yourself just how fun it is, and there is no better place that offers better bargains when it comes to food auctions than dineoutforpennies.com!