Penny auctions. You've most likely seen this new online auction experience as you surfed the web. A penny auction is simply an auction that increases the price of an item by one penny for every bid placed on the auction. Bidders must purchase bids before bidding on an item. A timer counts down the amount of time left until the auction ends. Time is added to the timer every time a bid is placed when the auction is about to end. The bidder who is active when the time runs out wins the ability to purchase the item at the current price, usually just a few dollars or even a few cents.
Because the price of the item won is only increasing one cent at a time the final price the winner pays for an item can easily be a 90% discount or better off of the retail price of the item. The winner then only has to pay for the shipping costs.
Of course the actual discount you get from winning an item on a penny auctions site might be less than you think. Don't forget to tally up the final costs of an item which would include... 1. The price of the item. 2. The cost of bids used to win the auction. 3. Shipping or handling charges.
Before buying bids at a penny auction and trying to snag a great deal its important to realize that if you don't win any auctions with the money you pay for bids, you lose that money with nothing to show for it. Its a risk that you should be willing to take before purchasing any bids at a penny auction website.
If you are willing to invest some time and money in learning the strategies and techniques that allow you to win penny auctions more often and at cheaper prices then you can score great deals. While the risk will always be there these auctions can be a lot of fun and a little addicting!