Penny auctions are a new style of online auction where bidders pay a fee for each bid they place. Each item up for auction has its own countdown timer, and the time remaining in the auction increases each time a bid is placed. When the timer reaches zero without any further bidding activity, the most recent bidder wins the right to purchase the item for the current bid price.
In a nutshell, that's how penny auction sites work. However, if you are going to register on a penny auction site and just randomly try your luck at winning some great item, you may as well pay a visit to your local casino and drop some money in the slot machines… you would have just as good a chance of winning. However, if you are willing to put in a bit of time and research, you can approach penny auctions with a plan that will greatly increase your odds.
So, here are a few penny auction bidding tips that can work to save you money and help you win penny auctions.
- Bid when other people are busy doing something else. Yes, the best and most popular penny auction sites are available around the world, in nearly every time zone. However, bidding traffic still seems to decrease when people in the U.S. are eating, sleeping, or commuting. Less traffic equals less competition, and better changes of winning that laptop you've had your eye on.
- Don't waste your bids on casual bidding. If it's the 50-inch HDTV you're interested in, focus on that, and don't be distracted by the low-priced Xbox 360 auction that seems like it might end soon.
- Invest some money in it. Yes, it's possible to walk into an auction with the five free bids you got when you registered and walk away with the iPhone you've been jonesing for, but this is definitely the exception to the rule. If this is how you want to approach penny auctions, you may as well go to your local convenience store and get a lottery ticket or two. Seriously. If you are really determined to win penny auctions, you will need to stockpile enough bids — either through buying or winning bid packs — to outlast your competition.
- Bid intelligently. Learn the ins and outs of your chosen penny auction site, and develop a strategy that fits.
Sources:
