Reserve Price Auctions: Pros & Cons
LOS ANGELES, April 10, 2012 /PRNewswire-iReach/ — As with all things in life, there’s an upside and downside. While we all do love reserve penny auctions and penny auctions, make no mistake about it; if Members don’t formulate a viable tactic and allow themselves to get “too” emotionally involved… they will simply end up losing more than winning. So lets take a look at the good, the bad and the ugly and begin to build a good foundation as to what it takes to walk away a winner.
The pros to reserve auctions sites are that players can save big money. There is no doubt in anyone’s mind that, if played intelligently, Reserve Auctions can pay off in big ways; And while yes, anyone can happenstance a win here and there… it takes a good theory and game plan to become a consistent winner.
Reserve penny auction websites are fantastic in the fact that players not “bidding” against other Members directly. As in timer penny auctions, where the price is driven up by Members bidding against each other. Legitimately or artificially driving up the end price… in reserve auctions, there is already a price point at which someone will win because the end price was predetermined before the auction went live.
With Reserve auctions, as we can see. Gone are the days of $50.00 items being bid up to $100.00 in a bid war by two or more people power bidding and trying to intimidate other bidders.
Reserve auctions mainly defeat collusion as well in that no one knows the final price where the auction will end thereby making it impossible for fraud against other bidders as well as fraud against the website holding the auction.
Some sites, like PennyGrab.com, have also come up with ingenious ways to make reserve auctions even more exciting by allowing Members to “Blitz”. So what is Blitz? Essentially, when a member feels the reserve price is near, they can place any given number of their bids on an item (let’s say 30 bids in this example) and the system will then place each of those bids until either: 1) the item is “won -or- 2) all blitzed credits have been placed.
On PennyGrab, if the number of bids used in the blitz is less than what it took to win that item, the unused Credits are returned to the Bidder. If, however, the credits did not meet the reserve price, the item is then again open to other bidders to Bid or Blitz themselves.
On the downside, unless the bidders are dealing with companies like PennyGrab, QuiBids or one of the 2 or 3 other major penny auction or reserve auction websites, people can never be certain of the quality of the item(s) being sold. Jewelry is a big one that is often misrepresented as are upscale items like clothing, women’s accessories… etc. Basically, anything that can be replaced with cheap knock offs from Asia, will be by the scam websites that all too often pop-up online to rip you off.
It cannot be said enough, trust ONLY those companies that are in the big leagues. Not only have they proven themselves to the major players in the industry… they’ve established a long line of trust that is not easily earned in an industry that not too long ago was rampant with scammers.
Along with being aware with whom you are dealing, the tactics used will determine, in large part, how successful the Bidders will be. Just like driving on the freeway takes an entirely different level of attention and skills from driving to the store, you don’t want to use the same tactics/methodology in Penny Auctions as would be used in a Reserve Price Auction.
In reserve auctions, it’s wise to look at previous auctions for the same or similar items that have ended recently. In this way, players will get an idea as to where various items are likely to end (as in, at what price point will it likely sell for this time). Once it’s been determined an approximate range in which the item(s) is likely to end at, the smart Bidders will be wise in their bidding. As far as Reserve Auctions go, there is no true way to “snipe” an auction because the price can’t be artificially driven up in a Bid War. It WILL end at its predetermined price no matter how many are bidding or how fast those bids are coming in.
When all is said and done, it’s the bottom line at the end of each and every week that determines if a strategy is worthwhile. Becoming an intelligent winner in Reserve Auctions is part talent and part methodology with a wee bit of the Luck of the Irish thrown in for good measure.
Media Contact: Lee Ryder PennyTime, 714-791-8178, firstname.lastname@example.org
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