Learn the Mathematics behind Safe Penny Auctioning

Penny auction sites are best when it comes to grabbing fabulous items at the lowest possible price. However, like in any other case, foolish moves can drag you to your ruin very easily. Apart from every other soft skills, the proper calculation always helps. This calculation is to be done for each item individually. The purpose of this blog is to teach you how to calculate efficiently and minimize, if not negate, you losses.

Live auction in USA is a very popular medium among buyer to purchase items but hardly anyone know how bidding websites make profit out of it.

Let's take, for example, a Samsung Galaxy S5 model which is sold at a penny auction site for 18 dollars. Also suppose the original price of this mobile in a Samsung store is 599 dollars. Now, in any penny auction site, the auction starts at 0.01 dollars. Each bid increases the price by 1 cent. So, this particular item saw 1799 bids to reach the final selling price of 8 dollars.

In almost every penny auction site in the USA, the cost to place a bid is 50 to 60 cents. So, for the 1799 bids, the users have paid a total of 1799*50 = 89950 cents or 899.50 dollars. So even if the site is offering the phone to you at 18 dollars, they are making enough profit. In this case, they are getting 899.50 dollars from bidding and $18 from selling, a total of $917.50. Deduct the price which the site paid to buy this Samsung phone from a store, $599. They are still making a profit of $917.50 - $599 = $318.50.

Now, take a look at the other side. Suppose, for the same item, there are 5 active bidders. So, each of them placing 1799/5 = approximately 360 bids. Each bid is costing the bidders 50 cents. So, each bidder is spending 360*50 = 18000 cents or $180. So, even if you win the bid by placing the final bid, you are effectively spending $180 +$18 = $198 for the item. This is the best case scenario. This scenario can get better if there are more active bidders.

In the worst case scenario, after placing 360 bids, you fail to get the item or simply give up. 

How much do you lose? 
You lose the amount spent for bidding, $180. 

Are you willing to risk this amount? 
The question which faces you is how much to spend on bidding in the worst case scenario.

First, decide how much you want to risk on any item and then know the bidding cost of the site. Do the simple maths and place your exact bids.  

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467 Oakside Circle S.W.

Calgary, AB

Canada  T2V-4T8

403-281-1614

Penny Auction Sites Are Good Place to Shop l NutBid

Penny auction sites are the latest fad among the onlineshoppers. The websites offer huge amount of saving on each product, sometimes going as high as 95%. The websites offer a wide variety of low-to-high end products at the cheapest possible rates. The idea is that each bid increases the price by one penny.
So a thousand bids will only accumulate to $ 10, with an increment of one cent per bid.

Shopping is fun at penny auction sites.

How does it work?

The concept is simple, and quite interesting at that. You have to purchase bids to bid on any item. Each bid increases the price of the item by one penny (or one cent).


There is a timer running, at the end of which the last bidder wins the auction.

Some penny auction sites also have a ‘Buy Now’ option. The option is added to ensure that you can buy the product at the market price if you really want it. It ensures that if you’re really looking forward to buying the product, you can still get your hands on it without having to go through the hassle of bidding.

The Pros:

There are number of good things about these penny auction sites. The most glaring benefit is the opportunity to buy the latest products at the best price in the market. Moreover, the variety of products ensures that you are not limited in your choice. The final benefit is the added entertainment of bidding on items you really want. There is a certain thrill to it and you have to try it to really experience it. 

The Cons:

All goods things have a flipside. One bad thing about these sites is that you require a long periods of free time and ample patience to keep track of your bids. You can end up spending huge amounts on bids, but it does not guarantee any success in the auctions. And finally, the prospect of being defrauded by these sites surely creates a reason to avoid.

The Final Say:

While there may be a number of reasons to avoid the penny auction sites, but it really boils down to being a smart buyer. The benefits of the bidding websites far outweigh the reasons that might prod you to steer clear of them. The success of these sites is testament to their usefulness. They are being sold as ‘entertainment shopping websites’ with the added benefit of saving. Be prepared to be entertained, but most importantly, be prepared.

You may also enjoy reading this blog : Pay Less And Win More At Penny Auctions

467 Oakside Circle S.W.

Calgary, AB

Canada  T2V-4T8

email: support@nutbid.com

Spending Bonanza on Penny Auctions This summer with NutBid

Rise of pennyauctions

More and more people are being shopping online this holiday season. The online shopping industry has been facing a recent boon. Much of this boon is being enjoyed by the penny auction websites. This is largely due to the following reasons:

•  Increased trust: The trust factor has always proved to hamper the growth of the penny auction industry. A number of penny auctions websites had been resorting to underhanded means to ensure sale of products.This trend has changed drastically which has infused trust in the customers. 

•  Wide Range of Products: The penny auctions offer choice like no other. You are not limited to a catalogue. Rather, the catalogue on the penny auctions is most dynamic. You get to choose from a number of brands, with the latest products always on show. 

• Convenience and entertainment: Convenience was what had led to rise of online shopping amongst the community. The recent boon of penny auctions is owed to the convenience as well as entertainment that is being provided at costs that are hard to believe.

Shopping with Nutbid to reduce burden on your wallet

Holiday Shopping on Penny auctions

This holiday season, a huge proportion of people have been doing their holiday shopping on the penny auctions. The preferred site of auction has been Nutbid, with over 30% of the customers choosing Nutbid as their number choice of shopping. This has been owed to:

•  Discounts of up to 95% being offered on every product on the website. It is hard to believe that you can actually get some of the best gadgets in the market for as low as $20!

• Complete package of service, which includes pre-sale service, during sale service, and after sale service. The holiday season is packed for almost all bidding websites, but Nutbid has managed to create a system wherein dispute redressal is quick and easy.

• Delivery system that delivers on the specified date. The deliveries from penny auctions are renowned to come late. But with Nutbid, you get your hands on the product that you’ve bought exactly when you want it to be delivered.

This holiday season almost all the shopping is being done online. If you’re one of the people shopping online, penny auctions rule the roost these days. Find out for yourself why they’re so popular.

467 Oakside Circle S.W.

Calgary, AB

Canada  T2V-4T8

email: support@nutbid.com
https://nutbid.com/