What’s a penny auction? Well, which means as possible bid on items by 1 cent increments which will be obviously within anyone’s budget. No surprise that Quibids, Beezid, and the likes, have gathered record amounts of customers in a brief timeframe. The main reason with this uprising is probably that if you win together with your penny bid, you will end up saving about 90% on new retail items such as for example Apple iPads for $20 (retail is $500 and up), Samsung LED 55″ flatscreen 3D TVs for $60 (retail is $2,000), etc…
Though it seems too good to be true, it’s very real. The bidding sites actually make far more money than what they spend on the new items. This is because customers have to get the proper to bid, on Quibids, an offer of 100 bids is worth $60, that’s 60 cents per bid. So if you placed one bid and won the iPad at $20, you’ll actually spend $20.60 on the item.
No big deal right? Let’s crunch the numbers. First, let’s observe that unlike eBay, these sites do not need a definite end time on auctions, everytime something is bid on, time is included with the clock. The auction ends when nobody posted a bid for say, 10 seconds. That basically implies that everybody has the same odds to win the item. On that note, let’s take the example of the iPad that went for $20. Starting the auction at $0, it took a complete of 2,000 1 cent bids to get there. In the event that you bid once, the probability to win this auction is simply 1 in 2,000. Of course, แทงหวยออนไลน์888 you can increase your odds by bidding repeatedly, 100 bids gets one to 1 chance out of 20 however you will then have spent $60 + $20 with a 5% chance to get the item. Meanwhile, the website will receive 2,000 times 60 cents for that no real matter what, that’s $1,200! Since that costs them only $500 and the auction winner will still have to pay the final $20 bid onto it, the website will make a staggering 144% profit! This is true on every item, every day, with the minimal infrastructure that comes with a online business.
It is really a mystery why such methods are legal because if you sum it up, all they’re, are online lotteries. Bids are bets and your odds rely on the money you spend. It is essential for the “customers” to appreciate that the dollar value of something that’s bet on doesn’t represent anything, it’s only a trick to attract more people and lead them to genuinely believe that they will receive a good deal. In reality, you can overlook the status of the “auction” and just think of it as a lottery which is why each ticket is worth 60 cents. By the end of the day, you can either get lucky, leave, or get caught in the loop and keep playing the odds. Like at casinos, you will end up losing a whole lot more than everything you are winning. My advice: check it out once or twice, then head to your store and pay face value…
