These Penny Auction tips and tricks will help you make the most of your bidding experience
Set realistic goals
Penny auctions can suck a lot of money if you’re not careful. It can also be addictive because of the thrill of winning an auction. Therefore, set your bid budget and stick to it strictly.
Understand the penny auction model
Many people complain about how bids cost money and are lost without a refund when you loose. It sounds unfair but that’s what makes the winning price so low. The bids that are used in an auction pay for the item while the winner gets to pay just a fraction of it. For every auction there is one winner and lots of losers. It’s important to understand how penny auctions work before joining and bidding on any item. There are huge profits involved but that’s the penny auction model.
Know the right time
Knowing the best time to bid can help you win items at a cheaper price. When you bid on items during less busy times, you have a better of chance winning. However, if there’s a lot of competition, things can get very difficult. Note the times when the site is least busy so that you can tell the best and worst times to bid. Generally the lower the winning price, the less bidders there were. But sometimes you need to consider the number of auctions available because there can be many bidders but also plenty of auctions so that the competition tends to distribute away.
Bid packs can be Useful
Bid packs are a great way to increase your bids. There are a number of bid pack auctions that you can win. When you win a bid pack in an auction, your account will be credited with the bids immediately. Suppose you spent 40 bids to win a 100 bid pack. Effectively, you have won 60 extra bids at the site! You can then use these bids to win other auctions and effectively spend less on the cost of participating in the auctions. But auctions for bid packs are usually competitive so expect some stiff competition.
Big-Ticket Items are Very Different
There are a number of big-ticket items like iPads, laptops, tablets, phones, etc. Therefore it is important to understand that the strategies to win these are very different from the ones you use to win $10 gift cards. Without appreciating this difference, you might wrongly apply the same strategy to both of them and end up losing a lot of bids. Counting on the actions of other bidders should be used for smaller items and occasionally for bigger items when there is reduced competition.
In addition, you should remember that the auto bidding system is a good resource to use in big-ticket auctions that last for a very long time. On the other hand, it is a bad idea to use this tool for smaller items, especially if you are using the waiting strategy. Also, you should try to avoid bidding in the initial stages of a big-ticket auction as there are many naive aggressive bidders. Let them all run out of gas before you swoop in.
Losing is Not an Option
If you follow this rule, you wont lose money at penny auctions. If you firmly decide that you will bid till the end, then you can be the winner. You will be surprised by the number of bidders who do not persist enough.
Remember to use this particular strategy only when you are sure to use the Buy It Now option where available. Without this, it is best to know when to quit.
You can also get aggressive to scare away the small time bidders so you can emerge the winner. This works very well when there are very few professional bidders.