Example Of Winning The Goods In Penny Auction.
Penny auction – is a type of auction in which the goods are put up for sale at minimal price, and the bets that make the participants are paid. Each bid increases the duration of sales at a given time, and increases the value of a commodity at a fixed value. The winner is such a bidder, whose bid was the last.
In advertising of these auctions the emphasis is done on that actually any goods can be bought at bargain prices.
What are the benefits for organizer of the auction to give the items at so low prices?
Can you imagine, an organizer of the auction not only loses, but gets a good profit! Before participation in the bidding the party is registered and bought a package of bets (bets in penny auctions are paid). The cost of one bid depends on the package: the bigger the package, the lower the cost of the bet. Scatter – from 7, 5 to 6 dollars. This is a “token amount”, that is what let do penny auction so much fun and sell new products at prices that are in ten times lower than the market.
You can also bet by sending SMS, but they are more expensive.
Step of the auction – is 25 cents. Let us imagine an imaginary auction with a starting value of 1 dollar, blitz-price 500 dollars that was eventually sold for $ 100.
Simple arithmetic shows that during the bidding it was done (100-1) / 0.25 = 396 bids. Cost of the bet – is $ 7.5 (we do not take lower price, because it is unlikely many people buy large packages of bets at once, especially beginners). Thus, the auction organizer received 396 x 7.5 = 2,970 dollars. Thus, if we assume that the goods cost 500 dollars for him, his profit was almost 600%! The cost of delivery is not subtracted from this amount, since the winner pays for transporting of the lot. Even if he needs to unfasten the percentage of this amount to the partner (according to the stories of experienced, it is 20%), an organizer gets impressive amount.
By the way, let us look at what a price in our example a lucky winner bought a lot. Assume that only one opponent was fighting for a lot with him. In this case, half of the bets are done by the winner, i.e. he has spent 1485 dollars for the bets. He laid out for his prize another 100 dollars. Plus delivery… and calculate by yourself.
Of course, our example is exaggerated. If in the auction several persons participate, each of them will make fewer rates, then less money would to spend on the bets. Theoretically you can make just one bid – the last one, and grab the goods from those who fought for it for a long time, but dried up at the finish.
Do you like auction sites? Then you no doubt need to visit Moloyo site. This Moloyo site is one of the latest auction sites in the online auction industry. Thus all the lovers of penny auctions are recommended to review this Moloyo site.
And remember that we live in the world of high online technologies. It wouldn’t be smart not to use the web network to search for anything to get it at the best prices available on the market. Search engines, social networks, blogs and forums – all this will assist you to solve many issues.
