How Do i Win on Penny Auctions

How Do I Win On Penny Auctions IT’S TOTALLY NUTS!

Penny auction sites can offer great deals for the buyers but only when bids are placed strategically. The huge discounts don’t mean the sites are doing charity, maths tells us that they are making their profit from these deals as well.

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o participate in any penny auctions, you must have bid points. Bids are like your credit during penny auctions which should be purchased from the site you are using. Although, there are ways to get free bid points but buying it is the general trend.

Different amount of bid points are needed during different auctions but to keep it simple, let’s assume that we purchased the bid points at 1 dollar each and 1 bid point is required to place the bid.

If you want to chase a particularly popular product, you will need to place many bids and thus, you will need to purchase lots of bids beforehand. There are many strategies used by the experience penny auction bidders which are complex so we will not include those here either. The general rule is, know the retail price of the product and how much you are willing to pay for it and buy bid points accordingly.

If you are after a really in-demand product, you will need to place many bids and thus, you will require many bid points. There are many stagiest followed by the experienced players but we will drop those here for the sake of simplicity. One good rule is to know the retail price of the product and how much you are willing to spend for it, and spend your bid points accordingly.

Thankfully, most of the major penny auction sites have a feature called “Buy Now� which enables you to buy a product straight away.

When you do this, the bid points you used to bid on that is usually refunded to your account.

How the site owners make money if they offer that big discounts is a frequently asked question. As the bidder spend almost 1 dollar for every bid, for a product with $5 as the final bid price, there has been 500 bids and thus 500 dollars has

been spent by the bidders on bid points. This is because every bid increases the price by 1 cent only.

This $500 is the total amount generated for the penny auctions owner. Now think of a product with a retail price of $200. If it is sold for

$5, it is still a great bargain. But, the site owner gets 500 dollars from the bidders, plus $5 as the final price, while he pays out only $200 to buy the product in retail.

So, he makes a profit of 500 +5 – 200 = 305 dollars.

About Nutbid After first discovering penny auctions we were hooked. We think they're one of the coolest and most exciting ways to shop today! Plus it’s affordable! But, we saw room for improvement.

That’s when we decided we could change things! We decided that we wanted to build a penny auction site that was sleek, powerful and easy to use. We also wanted to give you the best customer support possible with that personal approach.

You can win all sorts of popular products at incredibly low prices – all from the comfort of your own home! And you never have to go away empty handed, even if you don’t win the auction. Most auctions have a “Buy Now” feature that allows you to purchase the product after you’ve placed even just one bid.