Posts tagged: Penny auctions
This site is one of the increasingly popular penny-auction sites that invite consumers to hunt down good deals on electronics and household items.
We're posting a portion of the interview with Nick, who explains how the BigDeal auctions and bidding operate.
The pitch that caught the eye of Office Hours was the claim that real people are finding real deals on some items, such as getting a new Kindle for less than $10.
Here's the basic way it works: A person becomes a member by spending a minimum amount to earn bidding dollars. For now, that minimum is $22.50.
The idea is to be the last person bidding, as the auction clock runs down. Each bid you make costs you 75 cents; each successful bid you make on an item pushes the item price up one cent. If the item clock is finally coming down to 30 seconds or less, each new bid, whoever makes it, pushes the clock back to 30 seconds.
If you don't win, the amount of money you've bid can be applied to “discounted retail” price for that same item, offered by BigDeal. In other words, if you don't win it at auction, you can buy it at a discounted retail price. And BD has the item drop-shipped.
Darveau-Garneau said the auction-sale items offered come from wholesalers and discounters.
And yes, the auction items “won” will cost the bidder whatever the item price is at the end of the auction, plus shipping.
What we like about it:
What we don't like about it:
See the rest of the post below.
You all see those ads saying you can win an auction for an iPad for $5.
Does anyone really win something at those prices?
We'll follow up here after talking later today with Nick Darveau-Garneau, the CEO of BigDeal.com, one auction site that claims to be doing straight-up auctions for honestly low prices. We'll be doing a Q and A that we'll record, so you can listen to the key parts, if you wish.
And we'll post a quick summary of the points made during that interview.
If you have any suggested questions, email them to tomATspokesman.com