Prior to bidding on an auction, the bidder must obtain and pay for a package of bid vouchers. Each bid costs bidders $.60 and as they bid, their bid account decreases accordingly; however, the auction increases in bid increments of $.02. As a result, the final auction bid is usually much lower than manufacturer’s suggested retail (MSR).
As an example, let’s use an auction for a $100 gift card which has a retail value of $100. The auction begins at $0.00, and each bid raises the final auction price by $.02. As each bid is made, the auction clock has a specified amount of time added back to the auction clock. Bidding continues until the auction clock runs out, and the final bidder wins the item upon paying the final auction price plus any shipping charges, if applicable.
The final bidder, therefore, has two cost components: the cost of auction bids made and the final auction + shipping price. These two items, deducted from the retail value of the item, determine what type of discount the winner was able to win. If the winner paid $20.40 in bids (34 bids @ $.60 per bid = $20.40) and a final auction price of $20, the winner has won the $100 gift card for a cost of $40.40 or at a 59.6% discount.
An immediate reaction by a large number of people is that penny auctions have to be a scam; they can’t stay in business selling $100 for $40. That reaction fails to understand the fact that other bidders have paid for their auction bids. The auction company makes or loses money based upon the costs for the bids made minus the cost of the item auctioned.
BID BANDIT AUCTIONS
BID BANDIT AUCTIONS changes this paradigm with the introduction of the "Double Play" and "Triple Play" options, which allow two or three winners in designated auctions. This change is significant in that it gets away from the one auction / one winner mentality of standard penny auctions. Rather than playing "chicken" with all other bidders, on some auctions, BID BANDIT AUCTIONS establishes certain price levels; if the Double Play level is reached, the last two bidders will win the item, and if the Triple Play level is reached, there will be three winners.
BID BANDIT AUCTIONS also differs from other sites in that BID BANDIT AUCTIONS focuses on a broad range of products, mundane through luxury. Most other sites stress the luxury items only. At BID BANDIT AUCTIONS, we believe that a substantial discount on the day to day items we all use would be valuable to the consumer. Of course, we would all like to win a flat screen HDTV at 60% off retail pricing, but couldn’t you use the same type discount on car repairs, home repairs, or even medicine you need? It is a rhetorical question because we would all like to receive, earn, or win a substantial discount on items we need.
BID BANDIT AUCTIONS has set up auctions in such a way that items and services can be obtained depending on your own circumstance. For example, BID BANDIT AUCTIONS has set up many auctions for Visa debit / gift cards that can be used for anything your Visa credit card could be used -- pay rent, pay insurance, buy gas, pay for your prescription, buy groceries, buy clothing, buy Christmas gifts. You decide what it is you need.
BID BANDIT AUCTIONS also has many auctions for the items you want, including luxury items. You can receive the items listed for auction or you can select to receive a debit / gift card instead.
A unique feature to BID BANDIT AUCTIONS is the option for the winning bidder on most auctions to receive an emailed gift card, within 48 hours of the auctions being paid for, allowing the winner to order the auction item, or an alternate item, directly from the product provider. In this fashion, the winner receives the item much faster.
Another unique feature allows those winners who have a PayPal account to have the value of their win less 15% transferred as cash back into their PayPal account. This would allow a winner who, for instance, needs vehicle repairs to receive winnings in a very rapid fashion so that the winner can have the necessary work performed on their vehicle much more quickly. In most cases, the winning value can be transferred to the winner’s PayPal account within 24 hours of the auction’s closing.
TACTICS FOR IMPROVING YOUR CHANCE OF WINNING
1. You need to focus when participating in these auctions. Distractions will cause you to miss great opportunities.
2. Focus on one item at a time. Dividing your attention could cause you to miss a great deal.
3. Perform a cost benefit analysis of each auction you enter. Set a budget of what you will be willing to pay for an item, keeping in mind the two components of cost: bid costs and final auction price.
BID COST AVERAGING
Bid Cost Averaging, "BCA", is a tactic similar to Dollar Cost Averaging used in investing. The goal is to drive down the cost of your pool of bids. Hypothetically, when you open your Bid Bandit account, you purchase a pool of 100 bids for $60, each bid being worth $.60. You then bid and win a 300 bid voucher package for $117, having placed 12 bids valued at $7.20 and a final purchase price of $109.80. You now have a pool of 388 bids, 88 bids costing $.60 each and 300 bids costing $.39 each (117 divided by 300 equals .39). You now have a pool of 388 bids at an average cost of $.43 each rather than $.60.
You then bid and win a 50 bid voucher package for $5.16, placing 5 bids valued at $3.00 and a final purchase price of $2.16. You now have a pool of 433 bids, 383 bids at a BCA value of $.43 and 50 bids costing $.10 each. Your 433 bids now bid cost average at $.40 each rather than $.60.
As a result of this strategy, your bids cost you 1/3 less than bidders who have not bid cost averaged. (Note that these figures are for illustration purposes.)
Now, let’s spend those bids to win an auction and see how the numbers work out. Hypothetically, you and another bidder win different auctions for $100 gift cards. Both bidders used 30 bids to win the auction with a final purchase price of $5.00. The other bidder spent $18.00 in bids while you won the same item using BCA for $12.00 in bids for a difference of $6.00 in your favor.
TWO ACTUAL CASES
We recently had a winner who had bid cost averaged down and used the bids to win a $1000 debit / gift card. The card was then used to purchase gasoline for their hot shot trucking service. As a result the winner was reportedly able to purchase $1000 worth of gasoline for an average of $.40 per gallon.
The other case I wanted to pass along involved a winner who obtained a $1000 debit / gift card at a 90% discount. The winner then used an in store discount and was able to purchase a refrigerator for 80% off the retail value.
These are two best case examples, and you should not participate in these auctions unless you can afford to lose the money risked.
The information presented herein represents the view of the author as of the date of publication. Because of the rate with which conditions change, the author reserves the right to alter and update his opinion based on the new conditions.
The report is for informational purposes only. While every attempt has been made to verify the information provided in this report, neither the author nor his affiliates/partners assumes any responsibility for errors, inaccuracies, or omissions.
The logos and images contained herein are the property of the various companies identified.
Any misrepresentations of people or organizations are unintentional. If advice concerning legal or related matters is needed, the services of a fully qualified professional should be sought. This report is not intended for use as a source of legal or accounting advice.
You should be aware of any laws which govern business transactions or other business practices in your country.
Bid Bandit Auctions hopes you have a happy auction experience.
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