How to Win the Top Penny Auctions on Cheap Electronics Depot
Penny auction sites are a unique way to purchase products for well below retail value. However, if you are not careful, you could spend more than the cost of the item you want, or even worse, come away with nothing. By doing your homework and learning how use these sites, you too can become an expert who dominates the penny auction business.
Penny auctions sites often have “Power Bidders.” These users buy up a large sum of bids and use intimidation to win their auctions. Early on, power bidders tend to lose money by bidding way above what it may cost to purchase the product straight up. However, other bidders eventually start to realize they cannot compete with them and winning becomes easier for the Power Bidders. This strategy is more of a long term investment. Therefore, you have two options available when joining the penny auction site of your choice. Become a Power Bidder or educate yourself on how to defeat the Power Bidders. Either is fine.
Becoming a Power Bidder
If you really plan on scoring some sweet deals on penny auction sites, becoming a Power bidder is the way to go. However, it is not all about buying a ton of bids and placing them until you win. After all, the goal is to save money here.
The majority of penny auction customers are uneducated and purchase less than 20 bids. They will stand no chance against you. Here is why. Let’s assume they want to win a $2,000 55″ Sony HDTV. This item will likely sell somewhere between $10 and $200. That is an $190 spread. If the bid increments are 10 cents, $190 is equivalent to 1,900 bids. Therefore these wishful thinkers have to pray that one the 20 bids they use happens to be the winner. This gives them about a 1% chance of winning. You on the other hand are a Power Bidder and are willing to use 1,000 bids on the HDTV. This makes your odds of winning skyrocket to over 50%. Not to mention, 1,000 bids cost significantly less than a $2,000 HDTV. Penny auctions are all about playing the logical probabilities. Play the odds the right way and you can send everyone else home crying that it’s a scam.
It is foolish to jump into an auction early on. Let the “mentally challenged” bidders drive the auction price up for a bit, while draining their bids. Take a look at the winners page to get an idea of what things sell for. Think back to the $2,000 55″ Sony HDTV. You have learned that this item tends to sell for anywhere between $10 and $200. Now let’s calculate if covering this spread is cheaper than the product itself. As mentioned earlier $190 is equivalent to 1,900 bids. You must also factor in that you will only need to use half of this amount to cover the spread, because competitors will be placing the other half of the bids. Theoretically you only need 800 bids to cover this spread. 800 bids can cost about $250 if you bought your bids in bulk (HIGHLY recommended). Now let’s say there is a good amount of competition and the HDTV sells for $190. You used almost all of your bids to get it. Your bids cost you $250, the product will cost you $190, and shipping will cost you roughly $50. This grand total of $490 is $1,510 less than what you could grab it for in the store. Good deal? I’d say so.
Now we all know what you are thinking. “I don’t have the time to place 1,900 bids.” Luckily, the majority of penny auction sites have included a Bid Butler service. It may have a different name such as Bid Buddy, or Bid Bot, but the point it, they allow you to place bids without sitting on your computer. Take advantage of these for two reasons
You will not risk losing an auction when you take your eyes off of it for a few minutes
You intimidate other users who see that you are using a Bid Butler. They know you mean business and may be afraid to compete against you. The quicker your competition backs out, the quicker you can win the auction.
Defeating the Power Bidders
DO NOT believe that it’s all about luck. You will need skill, judgment, and strategy if you want to win consistently.
Pick a trustworthy penny auction site such as Cheap Electronics Depot. You stand a much better chance at winning auctions here than most sites.
Watch and learn. Take note of when power bidders like to start bidding on items. Observe how high they are willing to go before stopping.
Create intimidating usernames when signing up. Bidders are more likely to think twice when going against someone named “IDontStop” or “UnlimitedBids”.
Set limits for yourself. Decide the maximum amount of bids you are willing to use on a product and stick with it. Do not allow yourself to get caught up in the fact that if you stop bidding you will have spent money without winning anything. Remember, there is always the next auction for you to make up for it.
Buy bids in bulk and take advantage of special offers – We know it may be more enticing to buy the cheap bid pack, but more often than not, this results in a higher price per bid. For example; Cheap Electronics Depot offers 10 bids for $8 which is 80 cents per bid. But if you purchase their largest bid package you get 2,000 bids at 25 cents per bid. So not only are you paying much less for each bid, but you are giving yourself the ammo needed to take down your competition.
A clever tactic is to sign up with multiple usernames and buy bids with all of them. Sign into the penny auction site with each username using different browsers such as Mozillla Firefox, Internet Explorer, and Google Chrome. Place bids with all of your users. Power bidders tend to back away if they see more than 1 or 2 customers bidding on a product. They want them fight it out for a while, then swoop in later after the other guys have used up most of their bids. Once the power bidders (and even normal bidders) have backed away, this opens the door for you to win the auction.
For the most part STAY AWAY from the penny auctions that only go up by 1 penny at a time. On the surface they look great as the product sells for lower, however you want to place bid spreads covering a large price range on each product. With a penny auction the window is much smaller because 100 bids covers $1 (aka 100 pennies). If 100 bids are dedicated to an auction with 10 cent increments then you are covered for $10 instead of $1. The only sites we recommend for participating in the 1 penny auctions are Cheap Electronics Depot and IShop4Cheap. They are not oversaturated with competition and auctions can still be won with relative ease.
Do not go for an item unless you really want it. If you plan to use 10 bids on a variety of items just walk away now. Your piggy bank will be empty and you will have nothing to show for it.
Bid at unusual times. If there is an auction you want, maybe check to see if it’s still running at 5 AM. Clearly there are less users competing for an item at 5 AM than 8 PM.
Do not get frustrated if you do not win at first. Most bidders give up or cry scam after buying 100 bids without winning. You must remember that there are many more users competing against you who have purchased thousands of bids.
Penny auctions are a mathematical game. Although there is no particular formula that guarantees winning, you can always play the odds to come out ahead in the end. By following these strategies you will be well on your way to dominating the competition and saving a ton of money.