I wanted to make a detailed article about a Penny Auction and really describe how it works.
After all the biggest question I get asked is: “Hey James How Does That Penny Auction Work?”
Penny Auctions basically work by the company listing an item, such as an Ipad at 0.00$, each bidder then places a ‘bid’ for the item increasing the price by 1 cent. Depending on the amount of bidders participating in the auction, the price continually increases until the last bidder wins. The amazing part is that an Ipad retails for approximately $499 but an Ipad listed in a penny auction may sell for only $43.26 or until the last bidder wins the auction.
This $43.26 represents a total of 4,326 bids placed towards the bidding of the item. Each Bids That Give bid costs.65 cents. If we say 4,326 x.65 we have a total of $2,811.90 that went towards the winning of the penny auction item.
We can easily see how this is a win-win-win for the company and also the customer (bidder) who wins the item for anywhere from 80-95% off of retail prices. The company repeats this process for countless items each day and this is how a company really has a profitable auction on their hands. The great thing is that it is amazingly fun, exciting, and what a great bargain for the winner of the auction!
Bids That Give is different from most any other company out there because of one very crucial element: They Give Back To Children All Over The World. Part of the company’s profits go towards several children’s charities around the world to assist other countries in providing meals, shelters, and orphanages so these can children can have what we take for granted each and everyday.
Another big difference is that Bids That Give bids only cost.65 cents while most other penny auction sites cost a $1. You can really save by purchasing bids through Bids That Give vs. a lot of the competitors, and knowing that your purchase is going to a great cause is just icing on the cake in my opinion.
How Does Someone Win A Penny Auction? What’s The Secret?
I get asked a lot on strategies at winning the auctions, but the real secret is to watch it. The company offers each bidder the ability to place a ‘single bid’ or use the ‘bid buddy’, which can be loaded with a set amount of bids to bid on an item when the timer is at 14 seconds and lower. The ‘bid buddy’ is beneficial for those that don’t necessarily have the time to watch the entire time for an auction item, but I will say that the advantage definitely goes to the bidder who is patient and uses a combination of both ‘single bids’ and the ‘bid buddy’.
The real key and secret is to just simply have the patience to watch the auction item and jump in and strike when you have the advantage. This makes the auctions a lot of fun and you will definitely start to develop your own secrets and strategies the more you bid.