How to Figure Out What to Bid on a Penny Auction Site

by admin on March 17, 2011

There are many penny auction sites online that allow you to bid a small amount of money in the hopes of getting a pretty expensive item in the end. The bidding for all items starts at a penny, and then each bid after that can only go up by a penny. You can see how it would take a long time to get something up to even $5.00 because that is 500 bids. How can you let this system work in your favor and potentially get a great deal on an item you have had your eye on? Read the information below to find out.

You have to pay for the bids you place on an item. Some of the better penny auctions sites on the internet may only charge you $.50 per bid, but you could pay $1.00 or more in some situations. Whatever the case may be, you have to factor in your bids as part of your overall budget. If you are only willing to place 20 bids on an item, stick with that. If your bidding will change based on how high the product goes, figure that part out first.

You can research the prices that different things have sold for on the site to see what you may be expecting to pay. That will allow you to at least determine your base costs. Figure out what the item’s shipping charges are and if there will be any payment fees for you when you buy the product in the end. Add all the numbers together and that will be the minimum amount of money you are likely to spend on an item. You can use that to figure out how many bids you are willing to place.

Try to research the market value of an item when you go to determine what to bid on it. You should set a budget for yourself that you intent on sticking to in the end. Far too many people get caught up in bid wars that make them overspend for a product they really want. You cannot do that. Know what you would be willing to pay for the item, and then make sure that you place your bids according to that.

You should not place a bid on an item until the last few minutes of the auction. If you get involved in the bids on penny auctions sites too early, you could become a part of a bid war. Most of the time, bid wars lead to nothing more than a lot of money lost and frustration in the end. You may not even win the product when everything is said and done, which makes this all the more frustrating. Just wait until the last minute and place a bet to steal the auction. That is usually the best strategy. You can also look at automated bidding that the site has available. That will do all of the dirty work for you. Explore the tools on the penny auction site and see what they can do for you.

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