Penny Auctions - Penny Auction Strategy

Within this hubpage are the expert answers to frequently asked questions about penny auctions online including secrets, cheats, and insider information that is now available. Penny Auctions are sites that offer bids on high end consumer products for as little as one cent. The secret to penny auctions was kept as an industry secret for nearly a decade. Now, with this informational packet, the secret is revealed in simple tips and strategies for maximizing profit and making sure that every bid is won. This book will outline tricks and strategies describing how to win penny auctions on every site across the Internet. Also, described within are ways to protect against losses and avoid predatory sites. There are ways to prevent failure at an auction that reduce the bid stock and entices one into another completely different bid pack buy. A bid stock is the total amount of bids through wins or purchases on one or more accounts. It is similar to a star rating. It is built on bid packets which are bought on penny auction websites and used as currency.

Here are some PENNY AUCTION sites:

• BidRival
• Bidz
• Byza
  

At any given penny auction, only one person wins. Many people who bid will be outbid by a competing customer. Competition is exciting, and in no better place than in penny auctions. Losing a bid can be devastating to a bidder; however, it is best not to think of a lost bid as an overall loss. There are more penny auctions now more than ever. It is true that the more bids placed increases the chance of winning the bid. Many people place multiple bids at once. It is super exciting when an item bid on is won. It feels like winning the lottery. Losing a bid, on the other hand, could mean a few lost pennies, and it is ok. The process pays for itself. A few pennies lost over here mean more won over there. Getting the hang of things can be a slow process. If a person is new to penny bids, he or she is up against professionals who make this their business. Do not get disheartened. There is plenty of room for everyone who wants to join this fast growing and paying marketplace. Bidding against other people is fun. It can be a fulfilling social experience when two or more people are head to head on a specific item. Ultimately, it takes strategy and wise bidding that increases the chance of a win. This informational packet will give clues to success by providing at hand knowledge of the industry and will expose secrets that the pros do not want any one to know.

Before anyone can become a professional at something, it takes mastery of the basics.  It is not complicated, but does take some background in the history of online penny auctions and sales to make competent bids.  Winning strategies do not develop overnight.   It may take a week or longer to fully integrate oneself into this high paced, sometimes flashy, world of penny auctions.  This next section will answer a fundamental question of what is a penny auction.  Penny auctions were developed during the dot com boom in the early 1990s since then fortunes have been won and lost.  Penny sales have become the go to place for entrepreneurs and people who like to win and gamble a bit.  Users make bids on certain products up for auction on sites online.  Auctions have been around since ancient Roman times.  Auctions are the basis for capitalism.  It is called bartering.  Deals can be made that benefit the buyer and the seller.  A critical piece of the puzzle is the clock.  A timer controls how long the auction runs for.  The whole bidding system revolves around it.  When the timer begins, the auction starts.  As the timer counts down, anyone can bid their price for the product and be rebid or outbid by some one else who is willing to pay a little more.  The timer is reset when a bid is made.  Usually the time is given in thirty second intervals.  Each bid placed raises the auction amount by one penny.  Penny auctions have components that are critical.  Clever bids are the name of the game.  Make good bid decisions by watching the auction closely.

The types of auctions vary depending on the site.  The strategy will need to be flexible to allow for slight differences ion the bidding and time limit.  The bidder must always be checking on the auction with a keen eye and reflexes.  

• One Cent Auctions.  One cent auctions or penny auctions are by far the most common types of auctions.  The price goes up by a penny every time a bid is placed on the item.  The timer is critical to the process.  Ten or twenty or thirty seconds can be added to reduce the time limit of the open auction.  When the auction closes, the item is won or lost.  

• An Auction without Auto Bidders.  In auctions where no bots are allowed to place bids, bidder must rely on manual bids.  Some items can be expensive and the price can go high quickly in these types of auctions.  

• Beginner Auctions.  Not every penny auction site has beginner auctions available.  They expect people to dive right in.  In the sites that cater to new beginner bidders, opportunity is provided to learn about auctions and make winning bids easily.  Sometimes there are restrictions.  Some sites only allow one bid per person, so timing is everything.  Everyone will want to get in last second to try and attempt to steal the bid.  

• Open Auctions.  In these popular auctions, there is no limit.  The auctions are open and anyone can bid as much as they like.  These are normal online auctions and are showcased on a platform of popular sites.  

• Fixed Price Auctions.  Fixed price auctions allow a bidder to pay a flat price for the item.  Some times it is called buy it now.  Keep in mind, however, the price displayed may not be the final price.  Taxes, shipping and other fees may be included.  

• 100% off Auctions.  Many auction websites have free auctions.  The price is one hundred percent off and completely free except for delivery and surcharges.

When compared to a traditional auction, online penny auctions have the greatest discounts.  Winners, who placed the winning bid, are charged only the total bid price.  There is no overhead or additional fee.  The seller is responsible for the fees of listing and marketing.  The item rises in price from zero to the end sale amount.  Sale prices are usually far below retail and manufacturer prices.  This can happen for a number of reasons, mostly unknown unless listed.  For bidders, the discounts are why they shop at auctions in the first place.  Penny auctions offer enormous potential profits.  Penny auctions are sometimes seen as illegitimate.  However, a penny auction does not mean a scam.  Auctions are legitimate business practices for consumers looking for a bargain.   However, the auction is only as good as the seller.  The seller has the right to change his or her mind on an item, or hold out for a better price.  It is the penny auction guarantee that protects the seller from giving away items for prices he or she disagrees with.  Most of the time however, both the bidder and seller are happy about the transaction.  

Shill bidding is bidding on an item that one owns to increase the number of bids and ultimately the price.  It is a practice that is not condoned by auction website owners or by other bidders at large.  It makes for a bad business environment.  A good business environment is based on honesty.  Of course, shill bidding can backfire resulting in paying for an item that one owns already.  A bid butler is someone that makes a bid on an item for another bidder without wanting the item for his or her own self, but bidding as a placeholder for the benefit of someone else.  Bid butlers place bids when a bidder is unable to bid.  This is a customizable option and is controlled by price.  A limit is set to begin and end bidding on an item automatically.  Using a bid butler does not guarantee a winning bid.  Win limits are made to stop any one from taking over.  It makes sure that people do not monopolize the site.  Auctions are supposed to be fair for everyone.  Some people enjoy auctions so much that they bid on everything.  Some sites control how much one person can win.  Make sure that the rules of each site are well known t prevent a loss that could be prevented.  

Penny auction timers are automatic clocks built in to the site and control the auction availability time limit.  It counts down to a time when the piece is sold or not.  Usually buy the time the counter reaches zero, the auction is won or lost and a final price is achieved.  When the clock reached zero, the auction is ended.  The highest bid and last bid is the winning bid on that auction.  A bid price is the price of payment for the auction bid.  The bids are then purchased by the user.  Many sites offer for sale the bids for a dollar or less for each bid.  Large bid selection packages give greater savings to the customer.

Bid increments are the values of each bid as the price is raised.  The item being auctioned has set variable in price.  This makes it easy to bid.  In addition, it makes it more similar to a real auction where the auctioneer throws out a price and someone bids that they will pay that price.  The bid increment of one penny is added to the winning bid price of the item by a cent.  Free bids are available on most penny auction websites that give an amount of free bids.  Free bids are given at the time of registration, or by referral, or can be given away on a promotional basis.  These free bids are like coupons or free tokens and should be treated like real money.    

A reserve price is the lowest acceptable price of the item.  The reserve price must be reached for it to sell.  The item does not sell if this is not met.  When it does not reach, the auction can start over from the beginning.  Free penny auctions can be the result of an online surveys or email promotion.

Penny Auction Prevalence

The first penny auction site was Swoopo.  It changed everything.  There are more penny auction sites today.  Penny auctions are having a positive effect.  Any product or item can benefit from the competition of the marketplace.  Auctions are a visual way to see that.  Eventually, manufacturers see what is selling and make decisions based on that data. 

The first penny auction site was Swoopo.  It changed everything.  There are more penny auction sites today.  Penny auctions are having a positive effect.  Any product or item can benefit from the competition of the marketplace.  Auctions are a visual way to see that.  Eventually, manufacturers see what is selling and make decisions based on that data. 

Before bidding in an auction, make sure to fully understand the risks and benefits.  To strategize effectively and improve chances of winning, be acquainted with the penny auction industry.  Reading this is a great first step.  Penny auction sites use the silent auctions format as a the standard way to do business.  A silent auction implies that the bidding history is unavailable.  A bid is made and the bidder must wait to see if the bid is a winner.  The possibilities are that it is indeterminable how a person won.  It is impossible to tell what the person bid.  No one will know if shill bidding was involved.  Silent auctions become more of a lottery process than fair play.  

Such auctions attract bidders called power bidders.  Power bidders are just people who are aggressive bidders who use a bunch of strategies to try to push a win of the item.  Being aggressive does not automatically give the win.  A silent auction deters aggressive bidding due to the unknown variables of the auction. 

It is vital to pick a next to perfect auction site.  No site is absolutely perfect.  Make sure that the site has a good reputation and is clear to use.  Some sites are flashier than others, so choose a site that is enjoyable to look at for long periods of time.

If profits are the goal, then choosing a newer site is best.  Newer auction sites provide extra ways to bid and more options at auction time.  If discounts are the goal, then a traditional auction site is best.

Sites with Auto Bidders are to be avoided

The way to avoid an auto bidder checks out the site before doing any bidding.  It would be best to stay away from and site that makes one uncomfortable.   Auto bidders, or bots, can be easy to spot with some attention paid to detail.  Observe the bidding, and see if users are bidding on multiple auctions.  It is a good chance that if this is true, a bot is being used to try to win the auction.  The chance of winning on a site that allows auto bidding bots is next to impossible.  The only way to win is to bid against other human bidders.  Auto bidders do not care what the item is.  It is an automatic program that bids randomly or specifically, just trying to win items.  Penny auctions are updated constantly.  There is a list of trustworthy auction sites that do not allow auto bidders. 

There is a huge variety of sites to choose from.  The most trustworthy are probably the oldest sites too.  There three main penny auction sites.  Others may not be as trustworthy as the three listed below.  These are the big three sites.  

Beezid.com - There is an awesome new tool that makes competing for item much easier.
Swoopo.com - Swoopo is the first penny auction site created on the Internet.
Bidcactus.com - The gift card selection here is amazing.  Bidcactus does not allow bots.

Winning a penny auctions can give great gifts such as plasma TVs or gift cards for little of the value on the card. Each item can be bought for pennies on the dollar.   Nothing is free, but great discounts are available at every click.  Thousands of dollars in items can be won when a successful bid is placed and the auction is won.  It is truly a great feeling.  It may seem like there is a lot of luck involved, but when one wins and keeps winning, there is no doubt that success is not based on luck.  Most of the tricks of the trade are simple that once one knows them, they can be used any time.  There is no way to win every time, but with a few simple secrets employed, it will greatly increase the chances of winning a penny auction.  The rest of the guide is dedicated to secrets, tips, hints, and cheats for winning penny auctions time and time again.

Number 1.  The first rule is simple but important.  Avoid scams.  Penny auctions are growing in popularity, thus are magnets for web marketers or predators trying to get into the business, to make a quick dollar, or to steal information.  

Number 2.  A good user name is important.  A good name distinguishes a person who in real and truly interested in winning cheap auctions.  Here are a few good tips.

• An intimidating user name will declare that one is serious and dedicated to winning.

• A confusing name can help to detract other bidders from bidding.  Ideas like bid canceled, bidding done, auction down, or something else similar may help detract people from bidding.  

• A very similar user name to someone else may help other think twice about bidding.  If the user name is similar to the top person on the site, it will leech some of his popularity and will detract other from bidding.  

• Do not bid like a new user.  Always bet confidently.  Do not be a soft target.  New users bid sporadically. They bounce around to different items and do not concentrate.  

• Watch and wait.  Hold on to bids, sit, and watch. Watch for bid patterns.  Learn the site.   

• Use Excel to keep track of earnings and other information including these below.  Such a detailed list can turn out to be a gold mine of information when it comes time to bid on an auction and other users are competing.  
-i.  Power Bidders - These people seem like they have infinite bids and bid more than an item is valued at, and bid all the time.  These are professionals.  They are the sharks of the penny auction world.
-ii.  Easily beat bidders.  Keep track of easily beat people so that they can be easily beat.
-iii.  New users to keep an eye on.  These people mostly likely have the lowest amount of bids and can easily be won from.
-iv.  People who may warrant caution.
-v.  People who win big bid packs and the date won.  These people have large amounts of bids and are difficult to win from.  They like to win and will try to win no matter the amount of bids.
   
• Bidding techniques.  Various bidding techniques can be seen used by people when bidding.  These tricks and tips will be picked up as one becomes a regular bidder in penny auctions.  The techniques listed below will result in a win.  These are tried and true strategies for winning penny online auctions.  Stick with what is most comfortable.  Remember this is dealing with real money in a real circumstance.  Penny auctions are similar to gambling and should be treated with respect.  Be certain which of these is most comfortable.  Stick with a strategy until it pays off and do not bounce around.
 
-i.  Bid a lot.  This technique gives the most leeway.  Never enter in to an auction, which is not a guaranteed win.  It may cost more money than the item is worth by obsessing over winning.  It can quickly turn out to be a situation where one bites off more than one can chew.  Other bidders will avoid a person who bids like he or she owns it already.  This is a poker technique.  It will build a reputation and make future wins easier.  This technique works well.

-ii.  Sneaky bidding.  Use the Excel spread sheet to watch the board closely for footholds to win.  Jump on places where there is a clear route to winning.  This hint can save the bidder a lot of money in the end by using his or her own notes.  

-iii.  Wait to the Last minute.  When the clock gets down to the last minute and the last seconds, most people many try to jump on the auction and win it.  A bidder who bides his or her time will be the victor.  Wait until the counter reaches a few seconds to zero before betting and win the auction.  It can drag out the auction or force others to give up the auction.  Distracted bidders may lose an auction because they were doing something else.  Stay focused.  Conserve bids and money by playing the waiting game.  

-iv.  Remain on top of the auction.  Bid quickly if some one ups the price with a healthy bid of their own.  It shows strength to rebid right away and many even go unnoticed.

Join new auction sites and build a reputation for winning.  This will help in the long run.  New sites are not yet swamped and the competition is low.  It is easier to win with fewer bidders around looking at the same auction that one has an eye on.  Begin with penny auction sites that are less than one year old.  This will ensure quality penny auctions with the fewest competitors.  

Here are the three types of competition on penny auction web sites.  

• Aggressive bidders.  These types of bidders use aggressive bidding strategies to intimidate other potential bidders.  If a person continually rebids and pushes everyone else out of the auction, he or she is an aggressive bidder.  They will place another bid immediately after they are outbid.  They like to bid.  They have built a reputation around aggression and they want to win at nearly any cost.  These people can be beat with keeping a calm and clear head.  It is only one auction, there are many more, so it is best to be cool about it.  If up against an aggressive bidder, let them have it and get the next one.  

• Conservative Bidders.  These bidders use a conservative penny auction strategy and try to outlast everyone else bidding on their auction.  They bids sparingly and want it as much as any other bidder but they try not to show it.  They wait for the clock to hit one or two seconds and then they pounce on the auction and bid, trying to whisk it away from others.  

• Hopeful Bidders.  These types of bidders know that many auctions begin and end without huge competition from other bidders.  They attempt to grab auctions under the radar.  They play it cool and do their best to act casual and uninterested to keep the price low.  These bidders may not bid at all until time is up.

Betting on penny auctions is like an intense game of chess.  Strategizing before making a move and thoroughly thinking it through will ensure a clever win.  Watch every movement on the auction.  Choose the right time to make a move and capture the bid for oneself.  Every auction website has different times for heavy bidding. Though usually at the end when the clock runs down, but another penny auction strategy is the compete opposite.  By running up the price early, other will be deterred and an auction can be won that way.  Penny auction bidding can make some serious profit and it is best to treat every auction as so.  For successful strategy pay off, follow these simple tips.  

• Be aware of the time of day that the auction starts, ends, and what time the bids are placed.  

• Try to visualize the pattern of the site

• Look for weather reports and/or power outages or warnings that will knock others off the auction.  In certain cases real world events can impact the Internet including penny auction sites giving the win to an observer with clarity and charisma.  

• Late nights or early morning auctions can increase or reduce the competition from others drastically.  For example, during the Super Bowl may be a good time to bid as other may not be or have time for bidding. Strategies may also need to be flexible to the seasons when people go to and from school or have more online time during winter months.

Strategize with in One’s Number of Bids

A good bidding strategy considers the number of bids.  This is important.  One does not want to jump in to an auction with high competition.  It will make it near impossible to win if hundreds of bidders are watching it.  Use a strategy and stick to it.  This is a prerequisite for bidding with penny auction success.  With a bid package of twenty bids, it is not recommended to get involved with a big auction such as a computer or other high end electronic device.  The chances of winning such a big item with such few bids are very unlikely.  The twenty bids will be exhausted before the auction is close to ending.  Never power bid on the first go.  Aim low and go slow.  Acquaint oneself with the
site and look at how the winners have won.  Aim at winning a few nice gift cards first then go for larger and more expensive items.  The first pack of bids will b spent quickly.  With experience, one can nab big items with the big savings ion no time.

Sometimes, it may seem impossible to win a penny auction online, but it is not.  Be sure to wait until the last remaining seconds to make an offer.  Many people will bid fervently when the clock reaches ten seconds or less.  However, a bid butler is most likely waiting to jump in the pot in the last two or three seconds.  It can take a while to get a handle of, but in time, this process does pay off handsomely.  Patience is a virtue after all.  In addition, eventually, others run out of bids, and the time to strike arrives.  Use the cheat sheet and excel to victory by winning the first of many penny auctions.    

Use a bid butler to maximize efficiency of bids.  A bid butler is software that anyone can use and is similar to a bot but legal.  Know the auction market and focus on one auction at a time.  This will maximize profits while conserving as many bids as possible.  Count the bids made on the site.  Simple math techniques, similar to counting cards, can prove to be effective when deciding on the right time to bid the winning bid at auction.  One other thing, note that bidders will stop making offers at a certain price point per item.  They will stop bidding because they do not want to bid too high.  They still want to win the auction while profits are high.  Notice this and bet higher than they are willing to go.  This will increase the rate of winning by cutting into profit margins only slightly more than competitors.

Successful bidders on various auction websites take advantage of the buy it now option.  Some times the buy it now price is lower than the retail value of the item.  Gift cards can sometimes be bought at a cut rate deal.  Sites that offer buy it now, gives more options to the bidders and allows bidder to make more choices when it comes to calculating profits.  Penny auction sites have increased the buy it now options by more than twenty percent.  The points of penny auctions are to grab good deals.  Many people are taking advantage of this.

The buy it now option is some times used as a last resort when bidding.  A person wants the item for less than the asking price and when the auction goes over the price, he or she feels like straight up buying the item is the best way to save instead of potentially paying more at auction.  There is some risk involved.  Winning is not enough for some people who have become addicted to buying and bidding at penny auctions online.  When a lot of time and money is spent in penny auctions, it can be hard to limit oneself to a working penny auction strategy for the benefit of a pay out.  Success is consistency.  Score consistent results with award winning tricks in the next section.

There is not one best strategy to winning every auction.  With experience, one can see that a variety of constant strategies is the path to a winning career as a penny auction bidder.  The definite way to win is a formula of penny auctions winning strategies.  

Before bidding, do research.  Consider the following:

• the site traffic and rating
• the peak hours for bidding
• the aggressive bidders
• the easy winning auction

Increase One’s Probability of Winning over the Long Term.

• Quick counter bids.  This is aggressive bidding.  It is okay to be a little aggressive, just do not be crazy about it.  This strategy intimidates other bidders and pushes them away from the bid.  It is the strategy of immediately rebidding as soon as one is outbid on an item.  The bidder focuses on winning so bad that no matter may happen in the auction, he or she is going to rebid no matter what.  It is the equivalent of tunnel vision and is best avoided altogether.  

• Late entry bids.  This strategy places a bid immediately before the timer
reaches zero marking the end of the auction.  This is when the first bid is placed.  This can possibly work to one’s advantage depending on perfect timing and constant observation.

• Early entrance bids.  This strategy bids on the item as soon as possible after it is posted.  Other bidders will be intimidated by the subtle aggression in such a strategy.  Others may see the early competition and move on to what they think are easy and sure wins.  This strategy takes observation to make sure that no one else’s bid outbids the early entry bid.  

• Cheap item bids.  This strategy bids on cheaper items, while thinking that the expensive items will be the popular ones.  This strategy is popular and can possibly backfire.

• Off peak bids.  Fewer bidders are online in off hours.  Competition will be less.  However, with the entire world online now a days, one country’s off hours may be another country’s peak hours.  Be careful.  Also not everyone sleeps at the same time.  

• Butler only bids.  This penny auction strategy uses limited bidding by a software program and given certain limits to bidding.  The auto bidder does the work.  Make sure the limits are within one’s means and not to go overboard and ending up blaming the bid butler on a winning bid.  This is a conservative route where it is more difficult to get emotionally involved in the ups and downs of bidding wars.

Do learn from mistakes. 
Do observe the penny auction closely.
Do follow these tips to boost the winning streak. 
Do avoid aggressive bidders.  Penny auction sites provide a bidder’s history.  This feature will show who is most likely to win a bidding war.
Do visit new auction sites all the time.  This increases the chances of winning and gives a bidder more exposure and opportunity and experience. 
Do buy a lot of bids.  The more is the merrier. 

Do not bid first.  In an auction open for many days, bidding may be a waste of money early on.  The odds increase as the auction goes on.
Do not get into a bidding war.  Set bidding limits and stick to it.  Strategize accordingly.  Bidding wars are purely emotional and do not help the outcome of the auction. 
Do not spend a lot of time on low value items such as DVDs, etc.  The risk - reward is too small to make profit on.

• Focus on one item at a time. Bid on one item at a time. It will take some focus and concentration. Switching between items will cause mistakes due to confusion and distractions. The result will be disastrous.

• Use a bid butler when appropriate. Take advantage of a bid butler when away from a computer or busy. Automatic bidders will place an offer at a crucial time if missed.

• Consider purchasing bid protection. It is like insurance. Bid protection is to win a thing outside of winning the bid. Bid protection is a consolation prize in the form of a bid pack or gift card.

• Think again about late night bids. The human brain and body need sleep. The odds of a win increases with the decreased number of bidders. Keep in mind that bidding may become tiring and it may become a blur when staying up late. Place bids in late evening when most people are asleep, but not too late to rob any potential sleep. Make sure a good night’s rest fuels another bidding day. Do not sacrifice sleep for poor bidding choices when tired.

• Aim low. Less expensive items will have fewer offers. Sites spend much time on promoting big items like a high definition TV or 3d TV, laptop computer, iPhone, game stations, high end electronics, and Kindle. There is a larger profit margin for these items. Many bidders are attracted to these items to save a lot of money quick instead of pockets of money over the long term.

• Past auction research. Research the bid amount of wining bids in the past history of the item. This is the average bid. This is an idea of how much the item is worth and a conservative id can be placed accordingly.

• Credit missed bids. Most but not all online penny auction sites give the option of allowing bidders to reclaim bids that were lost by the purchase of the auctioned item in question for a far and decent retail price point. Even if a bid is lost, the money will not be. The item will go for the retail price as a protection to the consumer.

• Do not bid on items without appeal. Only bid on items that relate and are specific to one’s desires and needs. Bidding on items with no appeal is like betting on items with no value. Never bid on useless, unnecessary, and needless items. It will drain bids, money, and time and give a poor reputation. Time wasted is time wasted for everyone.

• Coupons and Promotional codes for Penny auction sites. Many big sites like Swoopo have promo codes and coupons for offers that promote new registration and bidders. Take advantage of these when possible to maximize free bids and opportunities including discounts.

• Lastly, refer friends for bonus discounts. Penny auctions sometimes give free bids for anyone referred to them. It is a great way to get extra bids and save on cash.

HOPE YOU ENJOYED!!! NOW GO OUT AND START WINNING!!!!