Understanding Penny Auctions
Understanding Penny Auctions
You may have heard a lot about penny auctions. If you have a friend who won an iPhone at 10% of its market price on one of these websites, you must be feeling envious of your friend and dying to try your luck. Well, if you know nothing about these auctions and what makes them so popular, go on to read why these penny auction UK websites have become so popular among the people these days. Penny auction is also referred to as pay per bid auction because of its feature that requires payment from the participants for every bid they make. The name penny auction comes from the fact that the base price of the listed objects is mostly a penny. Yes, it is hard to believe that bidding for an iPhone or a LCD starts with a price as ridiculous as a penny but that is true.
Last bid when timer ends is the winning bid
If you are allured by the fact that bidding for an iPhone starts at 1 penny, you have to buy credits using your credit card and become a registered member of the site to be able to take part in any live penny auction. As soon as you place your bid, you find that the price of the object is increased by a penny. At the same time, the timer that was showing 30 minutes or any similar time gets increased by a few seconds. This increase of time for the auction could be between 10 and 60 seconds. The timer continues to increase with every new bid but the person to make the last bid when the timer reaches zero is declared the winner of the penny auction. In most cases, the total money paid by the winner in the shape of his bids is much less than the market price of the object.
It is the excitement of winning an expensive item at low price
Of course it is the lure of winning an expensive gadget or appliance that is behind the popularity of these penny auction websites across the country. In fact, it is the large number of men and women taking part ina live auction that makes it possible for the company to distribute expensive items at such low prices. It is the excitement of winning a household item at a fraction of its market price that keeps the participants going in these live auctions. But if you do your homework and place bids only on select items and at right times, you can increase your chances of winning.
Always pay money upfront to have credits. This will enable you to place a bid whenever you think your bid has a chance to win the item. Also, do not focus exclusively upon the most popular item. Everyone has a desire to win an iPhone or a laptop. There will obviously be many more bidders for these items. It is better to place bids on unpopular items as few people take part in these penny auctions. Do not try your luck at peak times as there is too much rush during these hours. For more information see this link http://www.pennyauctionsites.com/strategy/basics/