Quote:
Originally Posted by themoneycollector
I don't see there being any "deals"
There was a box of VSG's that I wasted all 250 bids on. Of course it's a beta so everyone was just clicking, but I started to think about it.
When I finished my 250 bids, it was at $13.xx.
At 60cents per bid, FSS has made 1300*.06 = $780 in bids + what the box actually sells for. As a non-winning bidder, I spent 250*.6 = $150 to not get anything.
In the end, there's 1 happy person and tons and tons of unhappy people. In this case there's over 1299 unhappy people.
Morally, these penny auctions should be illegal. I feel sorry for the CS reps who are going to be getting complaints after spending bits here and there and never having anything to show for it.
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Yeah, penny auctions are HUGELY profitable. Especially the other ones...they usually don't even have the actual merch. They just drop ship to the "winner". You'll often see iPads going for $100 which means that the company recieved $6000 for the bids, plus the $100 winning bid. $6100 for a $600 iPad is a VERY hefty profit margin.