What is a cent auction? Well, meaning as you are able to bid on items by 1 cent increments that is obviously within anyone’s budget. No surprise that Quibids, Beezid, and the likes, have gathered record amounts of customers in a brief timeframe. The primary reason for this uprising is probably that if you win along with your penny bid, you find yourself saving about 90% on new retail items such as for example Apple iPads for $20 (retail is $500 and up), Samsung LED 55″ flatscreen 3D TVs for $60 (retail is $2,000), etc…

Though it seems too good to be true, it is very real. The bidding sites actually generate far more money than what they spend on the new items. This is because customers have to get the best to bid, on Quibids, an offer of 100 bids is worth $60, that’s 60 cents per bid. When you placed one bid and won the iPad at $20, you will actually spend $20.60 on the item.

No big deal right? Let’s crunch the numbers. First, let’s remember that unlike eBay, these sites do not have an absolute end time on auctions, every time an item is bid on, time is included with the clock. The auction ends when nobody posted a bid for say, 10 seconds. That basically implies that everybody has exactly the same odds to win the item. On that note, let’s take the exemplory instance of the iPad that went for $20. Starting the auction at $0, it took a complete of 2,000 1 cent bids to have there. In the event that you bid once, the probability to win this auction is actually 1 in 2,000. Needless to say, แทงหวยออนไลน์888  you can raise your odds by bidding repeatedly, 100 bids gets you to 1 chance out of 20 but you will then have spent $60 + $20 with a 5% chance to have the item. Meanwhile, the web site will receive 2,000 times 60 cents for that no real matter what, that’s $1,200! Since that costs them only $500 and the auction winner will still have to invest the ultimate $20 bid about it, the web site is likely to make a staggering 144% profit! That is true on every item, each and every day, with the minimal infrastructure that comes with a online business.

It is really a mystery why such methods are legal because if you sum it down, all they’re, are online lotteries. Bids are bets and your odds depend on the amount of money you spend. It is essential for the “customers” to realize that the dollar value of an item that’s bet on does not represent anything, it is merely a trick to attract more people and lead them to believe that they will get a good deal. The truth is, you can forget about the status of the “auction” and just think of it as a lottery for which each ticket is worth 60 cents. At the end of the day, you can either get lucky, disappear, or get caught in the loop and keep playing the odds. Like at casinos, you will end up losing a whole lot more than everything you are winning. My advice: check it out a couple of times, then head to your retail store and pay face value…

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