Ah, penny auctions. Do they provide deals? In some instances, yes they do. In others, no they don’t. Recently the penny auction industry has started to call themselves “Entertainment Bidding”.
Now, why would they do that? That’s mostly to protect themselves from individuals that think penny auctions are a guaranteed savings. They’re not. They’re on the same level as gambling, however if you like gambling, then penny auctions are a good legal way to gamble online.
So yes they can be fun and addicting. Yes they are “in the same league” as gambling. If you go in expecting anything else, you’re going to be disappointed.
Here’s how the process works.
1. You buy bids.
This depends on the site how much a bid costs and how much a bid is going to raise the price of an item. Sometimes the bid raises the price by 1 cent, other times it raises it by 10 cents. Each bid can cost $1 or $5, again this depends on the penny auction provider.
2. You bid on items on the website.
This is pretty much just a constant war with other bidders. If you’re the last one to bid you win, but each bid will extend the auction time. Everyone has to give up when you bid for you to be able to buy the item at that price.
3. You win or lose
If you lose sometimes, depending on the site, you can put what you bid towards buying the item. Some sites still don’t offer this option but most do now.
The “luck” factor.
If you get lucky and just happen to be the right bidder at the right time yes you can get the item for a discount.
The Competitive Factor
These bidding sites have gotten more and more competitive. There’s “Sharks” out there just like you’d find sharks at a casino. They want it to be known if you see their name they’re going to win no matter what. They’re willing to bid and bid and bid and bid. They will win. You will give up and lose. They will spend more than the item is actually worth just to win.
Is it fun?
If you think slots are fun then yes it’s fun. You have to set a budget just like you would at a casino though. If you don’t you could end up losing more money than you’d like.
Be careful, have fun and maybe get some discounts, but don’t expect to win anything going in until you study some strategies with penny auctions and get up and running. There are people making money off penny auctions just like there’s people making money off poker or anything else, but you have to know what you’re doing. Check out Beezid, see if it’s something you’d be into. If not, just don’t bother with penny auctions. Simple as that.