Power Sellers Unite

elgato · Joined: 24 Feb 2005 Posts: 17240 Location: Texas

The discounts offered on online penny-auction sites might be tempting, but Consumer Reports said an investigation of online penny-auction sites revealed that most users end up spending a lot of cash only to end up empty handed.

On sites like Bidcactus, Bid Rivals, HappyBidDay and QuiBids, which sell items such as an $1,800 high-definition television for $73, "actually winning a big-ticket item for pennies on the dollar from one of these sites can take an extraordinary amount of effort and is hardly a given."

Unlike traditional auctions, bidding isn't free. Consumer Reports explains, you must buy bids up front - typically for 50 cents to $1 each. To get bids, you register a credit or debit card or use PayPal. Bids are sold in packs, with the minimum pack costing around $25 to $60, depending on the site. Unused bids are refundable on some sites though sometimes within only 30 days of when you buy them. One key difference between traditional and penny auctions is that any bids you make are gone, whether or not you win.

http://www.auctionbytes.com/cab/abn/y11/m10/i17/s05

cohibastore.com · Joined: 14 Sep 2006 Posts: 4908

Oh the irony! (there always penny auction sites advertised one PSU)

to b or not to b · Joined: 06 Apr 2011 Posts: 56

I joined one of these auction site called Beezid a while ago because they said I would get free introductory bids for joining. I never bought any bids from them and I’m not surprised this style of auction is under investigation. The whole thing reminds me of a gambling scam.
These type of auctions prey on people who think they are going to get something for next to nothing. Once they’re hooked they keep buying bids and wasting hours trying to win stuff. Just like a slot machine in a casino.

If you have a gambling addiction these penny auctions are not a place you want to hook your credit card up with.
elgato wrote (View Post): › docWrite("quote")
The discounts offered on online penny-auction sites might be tempting, but Consumer Reports said an investigation of online penny-auction sites revealed that most users end up spending a lot of cash only to end up empty handed.

On sites like Bidcactus, Bid Rivals, HappyBidDay and QuiBids, which sell items such as an $1,800 high-definition television for $73, "actually winning a big-ticket item for pennies on the dollar from one of these sites can take an extraordinary amount of effort and is hardly a given."

Unlike traditional auctions, bidding isn't free. Consumer Reports explains, you must buy bids up front - typically for 50 cents to $1 each. To get bids, you register a credit or debit card or use PayPal. Bids are sold in packs, with the minimum pack costing around $25 to $60, depending on the site. Unused bids are refundable on some sites though sometimes within only 30 days of when you buy them. One key difference between traditional and penny auctions is that any bids you make are gone, whether or not you win.

http://www.auctionbytes.com/cab/abn/y11/m10/i17/s05

elgato · Joined: 24 Feb 2005 Posts: 17240 Location: Texas

cohibastore.com wrote (View Post): › docWrite("quote")Oh the irony! (there always penny auction sites advertised one PSU)

Yes cohiba some do register and promote their sites here at the PSU forums. I attempt to keep them under control and or merely merge their new threads into an existing topic of discussion.
I'm not sure if ALL of them are a scam or not. I merely try to keep this zoo under control, which over the past year or so, has become more of a pain in the arse than enjoying experience.
BTW, meet the latest penny auction, mokimarket. :roll:

to b or not to b · Joined: 06 Apr 2011 Posts: 56

My definition of a penny auction scam is when it offers some form of reward that is not guaranteed but requires I buy bids that once placed are un-refundable
Penny auctions are gambling. You pay to play. Just like slot machines and lottery tickets.
It also resembles many of the old carnival games, where in return for your cash you can try and win a teddy bear.
In fact penny auctions are probably more like the old style travelling carnival games than anything.

The real definition of a traditional auction is to bid all you want for no cost and only pay if you are the winning bid.
The people who promote these penny auctions have cleverly combined it with a gambling element that that might be outright illegal in many states were it not disguised as an auction.
Bottom line, if this was good deal for consumers they would be mainstream. Fact is, most people will figure out at some point they are being fleeced and will stop using these sites.

Penny-Auction-List · Joined: 22 Oct 2011 Posts: 4

Hey Guys,

I don't want to overcomplicate, try to persuade, be accused of spamming or anything like that, but I do want to step in and give the "other" view on penny auctions.

1. When I first heard about penny auctions, I thought for sure they were a scam. A site gave me free bids for signing up and required no credit card information, so I gave it a whirl and won a $25 giftcard with free bids. This is when I started to rethink my initial scam label. If I hadn't won, I'm convinced I would still be anti-penny auction.

2. There is a definite risk involved. Consumer Reports did a good job of highlighting that. However, a key quote from above to consider:

Quote: › docWrite("quote")an investigation of online penny-auction sites revealed that most users end up spending a lot of cash only to end up empty handed.

Most users jump into penny auctions without understanding the game, the strategies, the bidders to avoid, etc. Just like eBay has powersellers, penny auctions have powerbidders - users who do really well because they have a reputation to back up their bidding habits.

3. Some penny auction sites, like Quibids, offer a Bid-to-Buy option. This means that if you don't win, you can put the value of your bids toward purchasing the item at retail price. In other words, the worst-case scenario is that you pay retail for the item you want.

4. Again, if you're skeptical, avoid penny auctions altogether. At the same time, labeling something a scam before getting a full grasp on the concept and the strategies is a premature conclusion.

For those who are a bit curious, I would encourage you to check out the Penny Auction List a site that I manage. It offers tips, strategies, site reviews, and bidder interviews.

Thanks for the dialogue.

Josh

to b or not to b · Joined: 06 Apr 2011 Posts: 56

Josh
You have arrived at some very well informed *favorable* opinions simply as a result of winning a $25 gift card in a penny auction signup promotion.
However, a local casino can comp you free tokens too and you can also be a first time winner. Nothing new in any of that.

To your credit you state you have a vested interest in promoting penny auctions per your penny auction referral web site. - Thus you make money for promoting Penny Auctions -
It therefore follows that your opinions on this blog are blatantly bias and should not be considered as reliable advice in favor of Penny Auctions.

My unbiased unpaid advice is to STAY AWAY FROM PENNY AUCTIONS. That’s because I believe Penny Auctions are a gambling racket.

~ No one is paying me for my opinion; I receive ZERO compensation for it in any form. I am simply pointing out that JOSH is using his comments to advertise his Penny Auction promotion web site. (Shilling in favor of Penny Auctions)

Penny-Auction-List · Joined: 22 Oct 2011 Posts: 4

Hey to b,

I've made no secrets about moderating a blog that highlights penny auction websites and allows users to post unbiased reviews. In fact, by choosing the username Penny-Auction-List up front, I tried to make that very clear. And as I said in my original post, I'm just trying to offer the other side, which very logically means I happen to be on it.

Your views are biased against penny auctions (possibly because you don't understand them, don't like the concept, insert Reason X here) and my views lean in favor of penny auctions because of my success over time. I've won about $12,000 worth of items with an investment of a little over $5,000.

The difference between my post and yours is that mine happens to be a bit more reasonable. Notice phrases like:

There is a definite risk involved.If I hadn't won, I'm convinced I would still be anti-penny auction.Again, if you're skeptical, avoid penny auctions altogether.

If you're not willing to discuss the topic at hand -- penny auctions -- then I guess there's no need for you to add to a forum thread about them.

You can throw the gambling term around as much as you want, but in gambling there really isn't anything you can do to increase your odds of winning (other than spending inordinate amounts of money or cheating). The odds are always working against you.

There is a real strategy to winning penny auctions, as evidenced by certain bidders doing consistently well. Not only that, but how can a site that offers a Bid-to-Buy option be gambling? If I spend $20 worth of bids on an item that's worth $20, and don't win, I can apply that $20 toward purchasing the item at retail. How is that like a carnival game?

Josh

to b or not to b · Joined: 06 Apr 2011 Posts: 56

Hey Josh,
My issues with you Josh is not about the pros and cons of Penny Auctions, its about the principal that you are not just defending Penny Auctions but, rather you’re discreetly promoting them and have a vested financial interest as a referring website.
Specifically you are using this blog to drive traffic to YOUR web site. So it follows you are going to try and steer the debate in favor of people going to your web site and clicking on your links. Thus you stand the chance of making money.
Absolutely nothing wrong with that. I’m a capitalist too. And you are very upfront, that you have a commercial motive for posting here. Thank you for that.

But when it comes to debating which is better in an unbiased public forum, *Coke or Pepsi* ?, I’m not going to debate with a lobbyist, representative, or agent of either company because they are not debating, they are marketing.

You’re biased in favor of Penny Auctions because you have a financial interest.
Yes? / No?

Penny-Auction-List · Joined: 22 Oct 2011 Posts: 4

The thread is about a Consumer Reports Investigation.

One of the resources they cited in the investigation was another penny auction blog similar to mine...are you saying they should have never cited that source because that source also makes money from penny auctions? This is Consumer Reports were talking about...

If a teacher talks about education reform, should we write them off because they are a teacher and might secretly be hoping for a higher salary? Or are their comments irrelevant because they work at a school?

My PRIMARY motive for posting was to offer the other side of this discussion. A secondary motive would be to direct those who actually want to learn more about penny auctions back to my site. Since I've tried to highlight the pros/cons in a fair way, I think that's a reasonable thing to do.

to b or not to b · Joined: 06 Apr 2011 Posts: 56

Josh,
You are very reasonable and upfront. But this thread isn’t about school teachers unions it’s about Penny Auctions.
Your opinion is that they are worth people’s time to take a look at. AND you can make money if readers on this blog can be enticed to go to your web site. YES? / NO?

I believe Penny Auctions are deceptive and predatory, that is my personal opinion
And I have nothing to gain financially or otherwise if people like or dislike my opinion.

My only satisfaction is to maybe warn consumers that when it comes to Penny Auctions BUYER BEWARE.

But most people are smart enough to figure it out themselves, and if not they will probably lose their money.

You can make money if people go to your website and click on Penny Auction links, YES? / NO?
We both know you do, so there’s nothing useful to debate with you because you have a financial benefit depending on the outcome. In fact you are using this thread to market your web site. That should be made very clear to all who read this thread.

That’s all.

elpereles · Joined: 15 Dec 2006 Posts: 1478 Location: Puerto Rico

Waoo! Every time somebody in a forum show a comment/news/investigation about some group. Always appear some "fotutero" means in Spanish, a cheerleader guy or promo guy trying to defend it without a good statement. :roll:

Yeah, right! You don't need to give your credit card. :roll:

But you will need to give your name, address, and telephone. Some promo guy can said that anyone can find that in any Phone Guide. It is true, but in a Phone Guide you can't find what these people have, like or buy. Even using tracking cookies to know the Internet surfing live.

Penny-Auction-List · Joined: 22 Oct 2011 Posts: 4

@ to b,

YES. If people visit my site and click on certain links, I may receive a referral credit. That applies to less than 5% of the links on my site and helps defray (but doesn't fully cover) the cost of managing a website (hosting/domain/time/energy). I am a consumer myself, and I do care about where traffic is directed, so only certain sites make the cut to be featured in our directory. Futhermore, I do not use Google Ads because of my fear that an individual could be directed to a site without honest business practices.

I would say my initial explanation for penny auctions wasn't very enticing. You keep making it sound like I've got some sales pitch and I want to lure people a certain way... I said there was a risk involved, people who are skeptical should avoid them, etc. --- Not the world's greatest sales pitch. I just want people to understand that just because there's a risk involved, it doesn't mean something is a scam.

Now that I've addressed your YES/NO questions, I would kindly ask you to address mine. So here they are again.

1. One of the resources Consumer Reports cited in the investigation was another penny auction blog similar to mine...are you saying they should have never cited that source because that source also makes money from penny auctions? YES/NO?

2. If a teacher talks about education reform, should we write them off because they are a teacher and might secretly be hoping for a higher salary? Or are their comments irrelevant because they work at a school? YES/NO? (were talking about the same scenario, different industry)

Thanks in advance for the straightforward response.

Oh and @elpereles,

1. Read my comments above when you have the time. I'm not a very good cheerleader.
2. I didn't have to give my credit card. When I had my first win, I used Paypal and never revealed any personal financial information...ironically, this is less information than I would need to provide to shop in your Comic Book store.

Buenos dias Amigo!

elpereles · Joined: 15 Dec 2006 Posts: 1478 Location: Puerto Rico

If you use Paypal or any payment processor, you know that the sellers never get any financial info like the credit card number or the bank account.

Like I said before. It isn't the first I see a "fotutero" or promo guy in this forum or any other forum/blog I participate. Your kind is always the same.

Good luck in your "promo crusade"! :roll:

All Things Luxury · Joined: 26 Sep 2011 Posts: 73

In my opinion penny auctions are just a sad form of gambling.