A typical penny auction allows the bidder to place bids which increases the pricing of the product. Each time when a bid is placed, the ticking time is also reset. All the bidders wait for the last 10 to 5 seconds to make the bid which dramatically increases the auction time to be an hour or more at the last minute of bidding. This resembles as if it is allowing the users to make a gamble. Only a single person who bids lastly when the timer goes to zero is declared as winner.
Mostly the auction products are electronic goods which cost more than $1200 or $2000. But surprisingly, the auction starts at price $0 and the price increase on each bid with a minimum bid increment price such as a penny. This is the main attraction for the bidders hence 1000 bids make the price of the product as only $10. This introduces the element of gambling since there is chance of getting the product with a huge difference in pricing.
One of the notable point in penny auction is that if you are not the winner in the auction then you lose all the money that you have placed as bid which is more or less a gambling. For example, if you have placed 100 bids worth 50 cents on a product that is worth $1000, then if you don’t win, you lose $50. If you are a winner then you can buy the product at present product price in the site.
In few exceptional penny auction script they provide ‘Buy now’ option which allows the user to buy the product at the retail price similar to a shopping cart such that you get your favorite product. One should also not forget that whether you get the product at the penny auction winning bandar bola terpercaya or retail price, you have to bear the shipping price and follow the return policies as per the site norms.
Now let us take a look at the profit margin of the site owner. A product worth retail price of $850 is sold for $37.74 with minimum increment of one penny. If the site owner gets a commission of 60 cents per bid then for 3774 bids, the site admin will receive $2264.40 (while the product price is only $850). Therefore, a clean profit is built for the business owners while the participants are still a gambler perhaps.
On the other hand, if you take a close look at the auction site, they mostly don’t maintain an inventory. The auction site owners try to ship the product from other online ecommerce sites like Amazon by paying the shipping charges. These kind of product handling proves that it is clearly a gambling.
Apart from all the discussions, there is a huge demand for auction site and business owners seek penny auction software to build the site. The auction site can be easily built via penny auction script within the budget. Both the bidders and website owners can enjoy the benefit if they understand that auction depends on timely placement of bids which can always be researched to find the pattern.
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