Tuesday, November 30, 2010

Penalizing Greedy Low-Ballers

I don't quite understand it, yet.

It looks like each time a bargain-hunting cheapskate bids....he's assessed 60 cents!


One of QuiBids' best features is their "Buy it Now". The QuiBids "Buy it Now" allows users to apply the money they spent bidding on a product towards the "Buy it Now" price if they don't win. For example, let's say a user bids 50 times on a $50 Best Buy gift card, but doesn't win the auction. That user spent $30 on bids placed (50 bids x $0.60/bid). To exercise the “Buy It Now” option, the user would subtract the $30 spent on bids for the item from its $50 value price, paying the $20 difference. That way, even though they didn't win, all bids placed on the QuiBids auction count as credit towards buying the product.

If you're looking for a deal, QuiBids and other penny auction websites, might be the best way to snag an amazing bargain these days.
The more I think about it, the more it sounds like an ingenious business model/idea - ingenious in the sense of sneakily ripping greedy cheap Morons off.

Essentially, each product needs a 60 cent-paying bid to uptick. And I'm guessing that QuiBids restricts auctions to only move up in small (penny? nickel?) increments.

OH MAN!!! You've just got to watch this - click here.

And I'm going to feel really bad if this post just turned any of my long-time readers onto a new vice!!! (I'm especially worried about Mrs. PrivateCaller.)


Justin Time said...

Wow. Ingenious indeed. So essentially, they collect 60 times whatever a product sells for in a 1 cent auction.

So if the winning bid on MacBook is only 100 bucks, they net somewhere around $4500.

If it goes for 200 bucks, they make $10,500. Right?

And to add to the insanity, they also have people bidding on bid packages...

CaptiousNut said...

I guess the way to look at it is...

That people are buying (multiple!) 60 cent lottery tickets on a very, very small jackpot.

All fueled by a daytrading-esque/gambling weakness.

Justin Time said...

Yeah. I have the odds at 10 to 1 that this type of "auction", if not already illegal, will be copycatted enough to draw attention and then regulated out of existence within the year.

CaptiousNut said...


It's already been replicated many times over.

But if they become the leader, the others might melt away.

I remember when all sorts of well-financed competitors tried to compete with Amazon.com a dozen years ago. And, obviously, they all failed miserably.