Topic: Penny auctions: How good a deal?

[Skhilled (OP)]

Think before you try these sites! Amazon and others do not charge for each bid like these do.

http://abclocal.go.com/wpvi/story?section=news/consumer&id=8400294

[Ken]

If it sounds too good to be true... most likely it is!  :08:


This quote from the article tells the tail:

Consumer Reports Anthony Giorgianni checked out these and other penny auction sites. He took on QuiBids to see what it takes to win a $600 Samsung tablet. At first he was the highest bidder. But as the auction clock approaches zero, he's getting a lot of competition.

At one point Giorgianni said, "We have a big bidding war here."

He explains, "The sites can make a lot of money when there's a bidding war because they charge you every time you bid. A typical bid costs 50-cents to a dollar and the site keeps your money whether you win or lose."

So if the winning price is $100 and each bid costs 50-cents, the site could bring in as much as $5,000.