This Article is About
auction sites
time and money
first choice
Playing Penny Auctions Smart
Join 1000's of Authors at StreetArticles Today!

Playing Penny Auctions Smart

This article will cover some of the basics for playing penny auctions smart. Why is this important? Because if you don’t have a plan, penny auctions can soak up a lot of your time and money with little reward to compensate for the cost. Are you gaining financially at penny bids in addition to having some fun and excitement?

Your goal.

The first step is to decide why you play the auctions. Is it just for fun and amusement, and actually winning anything is a bonus? If it is, that is fine but you should decide up front how much time and money you are willing to spend on this entertainment. Just like we usually plan (at least roughly) how much time and money we will spend on eating out or going to movies. In this case keep reading, because some of the tips below will help you maximize your fun and enjoyment.

On the other hand, if you are like me you play the penny auctions not only for fun but because you also want to win some cool stuff for a really good price. And to maximize your chances you need good strategy and tactics. The rest of this article will provide some key tips for you.

Bid cost

You can’t participate in the penny auctions without bids so the first item is the cost of your bids. There are many auctions where you can get free bids when you first join. A bid giveaway should always be your first choice. The different penny auction sites often run specials where you can buy bids at a reduced cost. Buying larger bid packs can also save you money on some sites. The auctions also have bid packs up for auction. This will lower cost if you bid wisely and win them for a low cost. Most sites have bid giveaway for referring new users to the site. Finally some sites provide bonus codes from time to time. The best way to find these is search the forums and blogs.

Selecting items

Now you have your bids. Do you start bidding? Not yet. At least I don’t. I review the items that are coming up for bid and decide it there is anything that I really want. It might be an item I have wanted but would not pay retail price for. Maybe I find some items that would make nice gifts, particularly if purchased at a discounted price. Or maybe it is something I have decided to purchase and want to check the penny auction to see if I can win it at auction.

Maximum price

Next is setting the maximum price you are willing to pay for the item. The auctions usually give the retail price of the item but don’t use that as a guide for your maximum bid. Check your local discount stores and do an online search for the lowest price. As a general rule I limit my maximum bid price to about 50% of the discount price of any item.

Maximum bids

Now you have your maximum price. Are you ready to bid? Not necessarily. You still need to determine the maximum number of bids you will commit to the auction and their cost. Your bid cost may have been $0.00 if you received them through a bid giveaway. In this case, just determine how many bids you are willing to spend bidding on a particular item. If you paid for your bids the cost has to be included in your maximum price. If you want a formula it is:

(Bid Cost x Bids Used) + Wining Bid Price = Maximum Price

This is a little complicated to keep calculating during an auction so I just make a simple calculation before I start bidding. I decide on the maximum price I will pay and the maximum number of bids I am willing to use. If I received the bids from a bid giveaway there is no cost to calculate. Otherwise I simply take the maximum price that I am willing to pay and subtract the cost of the bids to get the maximum bid price. So now I have just two numbers to watch as I am bidding: the total number of bids I have used and the current bid price. I stop bidding as soon as I reach either one of these two limits.

Get Started

Now you know how to play the penny auctions smart so get started and have fun. Know why you are bidding for an item and what its real value is to you. Get your bids through a bid giveaway or some other discounted purchase if possible. Write down your maximum number of bids and bid price maximum and keep them in mind as you bid. And good luck to you, it always helps.

Street Talk

No comments present
You May Also Like
Products to sell online
There are plenty of products that you can sell online if you have them and there are also ways to sell products online that you do not own or do not currently have and still earn a commission when you sell something. In this article, I will talk about some…
By: Anthony Muzonzini in  Internet and Businesses Online  >  Ecommerce   Aug 16, 2011  
  Likes: 0

Sequence Bras
Are you looking to purchase sequence bras online? There are many places where you can begin your search. Auction sites like eBay might have a lot of options. Amazon would also be a great place to start. If you are looking for a sequence bra that works with your belly…
By: Lark Begin in  Recreation and Sports  >  Dancing   Feb 07, 2013  
  Likes: 1

Websites where you can sell items
With the downturns in the economy recently, many people are now looking to sell off some of the things they own just to stay afloat and stop living from paycheck to paycheck. Selling items online is something that has brought great reward for those who have persisted in the field…
  Likes: 0

Farm And Heavy Equipment Auctions - A New Bidders Guide
When looking for used farm equipment or other heavy equipment, sometimes the local trade publications just don't cut it. Equipment stores and rental shops are usually slim in selection for the used equipment they sell and the price and or history of the equipment can be questionable. It's never fun…
By: Trevor S. in  Automotive   Dec 14, 2011  
  Likes: 0

Website Ideas That Make Money, Things to Try And Things to Avoid
If you were to type into Google "make money online" you would be presented with literally millions of search results. For any one starting out trying to make an income this way then it is potentially a minefield, so here are just a few ideas that I have picked up…
  Likes: 3

Belly Dancing Apparel
There are may places to buy belly dancing apparel online. Be sure to browse your favorite sites and bookmark your favorite sellers. If you buy one belly dancing related item one day, it probably won't be your last. There are so many neat and unique items up for sale that…
By: Lark Begin in  Arts and Entertainment  >  Performing Arts   Feb 05, 2013  
  Likes: 0

Some Tips for Selling Items on the Internet
There are many different techniques one can use to start selling items on the internet. Selling items on the internet is proving to be cost effective for many businesses and is also proving to be very effective for those who want to start their own home businesses. In this article,…
  Likes: 0

Belly Dance Crop Top
Are you looking for a belly dance crop top online? There are many sites you can use to purchase belly dancing apparel. There are auction sites or even local websites that have crop tops and accessories for belly dancing. If you live in an area that doesn't have a lot…
By: Lark Begin in  Recreation and Sports  >  Dancing   Feb 15, 2013  
  Likes: 1

Proliferation Of The Online Penny Auctions
Hunting for a bargain on daily conveniences and assorted items? Then your best bet would be penny auctions, besides groupons of course! From the name itself you can deduce what this is all about. Assuming you’ve not come across this offering before, it is an improvisation of the traditional auctions,…
By: Stevenson in  Internet and Businesses Online  >  Auctions   Sep 19, 2011  
  Likes: 0

Learn Online Niche Marketing The Right Way So You Don’t Waste A Lot Of Time And Money
Did you know that a niche does not have to have ten thousands views a month to be profitable? Want to learn online niche marketing that will show you were the real money is, and how to do niche marketing for real? The place I’m talking about is the ultimate…
  Likes: 0

How to Use Market Research to Be Your Customers’ First Choice
You don’t have to face flat sales or see your profits taking a deep dive to take action. Before you get overwhelmed by such an unpleasant but very possible situation and start downsizing or reducing your marketing budget or even decide to change your business model you must be sure…
By: koutsoupiask in  Business  >  Strategic Planning   Jun 14, 2013  
  Likes: 1

Top Selling Apps: Make it Happen
A successful app can make you millionaires overnight… at least for the others. But the great idea which made it happen, takes a long time to appear as reality. We get to see a lot of mobile apps come to life and create their impression. It’s a long journey before…
By: hiwebby in  Internet and Businesses Online  >  Auctions   Apr 06, 2016  
  Likes: 1

How to Become An Ebay Seller
Make an extra $300 a week selling on ebay. I don't think I know of anybody that couldn't use an extra $300.00 a week. What about you? Think of the thing you could do with that extra $1200.00 a month? You could start a vacation fund, pay off some high…
By: Bill Basinger in  Internet and Businesses Online  >  Auctions   Nov 19, 2012  
  Likes: 0

Finding Inventory To Sell Online
It's Sat morning, you have your coffee, newspaper, mobile phone and a pocket full of money. It is time to head out to the garage sales. If you sell on Amazon, Ebay, Craigslist or any other online selling platform, you know that finding good inexpensive items to resell is the…
By: Bill Basinger in  Internet and Businesses Online  >  Auctions   Nov 18, 2012  
  Likes: 0

Ebay For Quick Cash
For many of us when you're starting out in internet marketing you might find that you are getting frustrated with your lack of income. When each day, week and month that goes by and we're still not making money you might feel like quitting. Ebay can be a great way…
By: Ian Worrall in  Internet and Businesses Online  >  Auctions   Jun 04, 2011  
  Likes: 1

Article Views: 2154    Report this Article