The Number 1 Mistake New Bidders Make: Not Understanding How Penny Auctions Work

dealdashhomepageThen crying “scam” anyway…
Ok, so these may seem pretty simple to some of you who have been bidding and winning penny auctions for quite some time, however many of you may be making the biggest mistake when diving in and trying penny auctions for the first time
The number one problem bidders have when it comes to penny auctions is not understanding how penny auctions work.
Penny auctions are online auction/alternative e-commerce websites that allow consumers a chance to win popular consumer electronics, household gadgets and gear, gift cards and other desirable items at a discount. But in order to get a discount bidders must take heed and learn how penny auctions work and mistakes that cause many bidders to lose a lot of money.
Unlike the traditional auction such as eBay, where bidders register and receive a bidding name, place a bid and if they’re the highest bid when the time runs out wins, wins. In penny auctions, bidders purchase bid packages ahead of an auction (or if skillful – refill in the midst of bidding). Bid packs, depending on the site, can range from a few set packages to sites that allow bidders to customize their bidding experience by specifying a set number of bids.
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On DealDash bids range in packages and are currently $0.20 a piece. Bids on DealDash are currently, as of today, January 25th, 2014 sold in the following bid pack amounts 180 for $32.40, 400 for $72, 800 for $144, 1500 for $270, 2500 for $450To purchase bids bidders select the amount of bids desired and can use either PayPal or a credit card, depending on the penny auction site. Again, no bidding is not free on penny auctions, this is where the penny auction greatly differs from the standard online auction model. So once you have purchased your bid pack you need to know how to bid and how the timer works.
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Unlike eBay, where the timer counts down, and the bidder who has bid the highest when the time runs out, penny auctions have timers that count down, BUT – and this is what you must understand If you want to dive into penny auctions: The auction clock may show 10 seconds left, but time will be added, or reset (depending on the site) with each new bid placed. So really, when is 10 seconds left not really 10 seconds left? Any time a bidder places a bid in an actively counting down auction. Not only does the timer increase, or reset with each new bid, the “auction price” increases by $0.01 (hence the name penny auction) with each bid placed.
I’m sure by now, if you’re reading this you’ll have seen the penny auction ads and ending auctions stating end prices for items from anywhere to $0.01 to $100 and beyond. This is what you MUST understand – a penny auction that ended for $45.99, really took in 4,599 bids from all participating bidders.
So let’s back up… A penny auction is an online auction site with a twist. Bidders pay for a chance to win, with each bid placed money is being spent and there is only one winner per auction, so money spent in bids could be “wasted” when you’re not a winner,
So in actuality, when a site advertises items that end of $45.99, the bidder may have “won” the item for the end price of $45.99, but this is in addition to any purchased bids. Say biddertommy won the item, let’s say it was a brand new MacBook pro – awesome deal right?, a MacBook pro retails for $X, well, biddertommy was bidding against just a few other bidders, and he really wanted to win, so he bid a lot… in fact, he placed 998 bids and had to open up another browser window to keep reloading his bid count by purchasing new bidpacks throughout the duration of the auction.
Bids on the penny auction site he was bidding on, were $0.75 a piece (not an uncommon bid price) so biddertommy spent $748.50, plus the auction cost (remember: this price was a result of a culmination of all bids placed by all participating bidders) of $45.99 + any shipping costs if applicable. So when you see that the new MacBook ended for $45.99 and think wow, tommy got an amazing deal – now you’ll know how penny auctions really work. Remember, bids on DealDash are often discounted, with current prices at $0.20 a piece.
Tommy spent $794.49, which still a great discount off of the retail say a MacBook valued at $1,300 but really not the huge final end price savings that you presumed he got based on only looking at the end price.
#1 thing you can learn from this – there are definitely deals to be had on penny auctions, but if you do not win an item for $19 or an iPad at 90% remember – the % off retail and savings price is in most cases a reflection of the final end prices.
Try DealDash.com and let us know what you win!
 
 
 

Featured DealDash Item: iRobot Roomba 650 Vacuum Cleaner!

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Do you ever get tired of cleaning and wish you could have someone do it for you? What if you could have something clean for you? If you haven’t seen the iRobot Roomba 650 vacuum cleaner yet you need to check it out.

 
The iRobot Roomba is a robotic vacuum cleaner that will do all the vacuuming for you. DealDash frequently offers the Roomba 650 vacuum for auction with a $400 buy it now price. The 650 was specifically designed to clean up pet hair, dirt and dust and automatically adjusts for the cleaning surface – the Roomba works very well on any surface, from carpets, hardwood, tile and linoleum as it can be set to move throughout your entire home or building.
The Roomba has been programmed with advanced sensors and software allowing to vacuum more surfaces, much more thoroughly as it vacuums every section of a room multiple times. A sensor tells the Roomba when the floor has been completely cleaned. Pretty slick right? It gets even better… You can set the Roomba 650 to clean at whatever time you tell it to, you don’t even have to be home – and it can be set to vacuum up to seven times per week! Plus, it will even return to its home base to dock and recharge between cleaning cycles.
Now, you might be skeptical of just how well the Roomba works – the Roomba was co-founded by an MIT professor back in the 90s and this model in particular has had over 330 reviews on Amazon.com and still holds a 4.5 out of 5 rating!
One Per User Auctionirobot_roomba_001

The Roomba is a one-per user item on DealDash, which means all users can only win one of these handy little vacuum cleaners. This means you could have a better chance of winning on!

  • Roomba 650 picks up an amazing amount of dirt, pet hair and other debris with its patented 3 stage cleaning system
  • Dirt Detect technology employs an acoustic sensor to identify dirtier areas and spends more time cleaning them
  • iAdapt is an advanced system of software and sensors that ensures Roomba vacuums every section of your room and cleaning areas you cannot easily reach
  • The included Virtual Wall keeps Roomba cleaning where you need it and blocks off-limit areas
  • The robot can be scheduled to perform up to seven cleaning sessions per week, even when you are not home

 Win the iRobot Roomba 650 Vacuum Cleaner on DealDash and spend the time you saved not having to vacuum doing something more worthwhile, like bidding and winning more useful items!
Bidders on DealDash are scoring the iRobot Roomba for end prices as low as $11.94! Find out more about how to bid and win on DealDash:  10 Ways to Bid Smarter On DealDash.
 
 

Introducing Dear DealDashTips! Reader Question & Answer Series

question and answersHave you ever read the famous Dear Abby columns in the newspaper? If not, you really should check them out (DearAbby.com).
Dear Abby is written by Abigail Van Buren, also known as Jeanne Phillips and was founded by her mother, the late Pauline Philips. The Dear Abby columns are published to help people by providing common sense advice on marriages, children, jobs, and really just about anything that troubles them.
Is there anything that you would like to know about DealDash or penny auctions in general?  
Wouldn’t you like to have a “Dear Abby” for penny auctions? Now you can. Introducing Dear DealDashTips our new reader question & answer series.
Are there any tips or words of advice that you would really like to know?
Do you struggle with anything related to penny auctions? Perhaps you are having problems with how a loved one or friend views your bidding admiration as “addiction,” and need to find a way to defend your hobby?
Or maybe there a feature or bidding style that still puzzles you?
Is there an item that you’ve always wanted to see on DealDash, or a feature that hasn’t been implicated yet?
We will try our best to get you an answer, pass on your feedback, and see what the DealDash team thinks!
Each Monday we will host our weekly Dear DealDashTips Question & Answer Series. In order to make this new series a success we need you to send in your questions – all you have to do is include them in the comments section below, and we will answer them in our weekly series beginning next Monday.
Keep your questions to the point and provide background information about yourself too!
We can’t wait to get started. This is going to be a lot of fun!
-DealDashTips

 
 

Featured DealDash Item: The GoPro HERO3+ HD Camera

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While checking out all of the cool new products at CES 2014 in Vegas this past week I came across the GoPro booth. I was astonished to learn that last year alone GoPro sold a reported 2.3 million cameras, and gained 6.3+ million Facebook likes! Not only that, they host a daily giveaway where one person wins each of every product they sell.

What is GoPro?  

GoPro has become the producer of arguably the “World’s most versatile camera.”
Since GoPro’s HERO cameras are all wearable and gear-mountable they appeal to a wide range of fans – from the extreme sports enthusiasts to anyone wanting to share their adventures in true high-quality, HD style.
Sounds cool, right? Wait until you see a video shot with a GoPro HERO. This video was shot by a hiker while backpacking on the West Coast Trail in the Pacific Rim National Park, Vancouver Island, Canada. If it doesn’t inspire you to want to lace up your hiking shoes and grab a pack and just go I don’t know what will.

You know when you experience something so awe-inspiring and beautiful you just know that any photos you take just won’t do the moment justice? Well, a GoPro really credits the beauty of such a moment. 

 If you’re not the outdoorsy type, I guarantee that watching this clip will make you feel like you’re along for the journey (minus any aching muscles and feet). 

Check it out:
Ok, so I forgot to mention.. That amazing video was filmed back in 2011… That’s 3 years ago!

Can you imagine what a NEW GoPro HERO would capture?

Take a look at the GoPro HERO3+ Black Edition:


The HERO3+ Black Edition is not only wearable and gear-mountable, it’s  20% smaller than its predecessors, it delivers improved image quality – in fact, it’s the most advanced GoPro ever made.  SuperView™ is a new video mode that captures the world’s most immersive wide angle perspective, while Auto Low Light mode intelligently adjusts frame rate for exceptional shots even in low-light environments. Combined with 30% longer battery life thanks to a high-capacity lithium-ion battery, 4x faster Wi-Fi, a sharper lens and compatibility with all GoPro mounts and accessories. 12.0 MP still image resolution. Waterproof housing protects the camera during submersion in up to 131′ of water.  Mono microphone records clear audio. MicroSD memory card support.
It gets near perfect reviews, too. Rated 4.6 out of 5 stars by 59 customers on GoPro’s website. 4 out of 5 stars on Amazon.com with 212 reviews.
Not only has GoPro been claimed to be the best-selling camera of its kind, the HERO3 camera has been used by many professional production companies. The National Academy of Television Arts & Sciences recently awarded the HERO3 camera an Emmy for its contributions to filmmaking and production. Wow!
“We have used GoPro cameras in some of our biggest productions, like Survivor and The Bible. GoPro has allowed us to capture and share fascinating new perspectives that previously weren’t possible or were too costly, which in the end makes for better story telling. We are always excited to see what GoPro is working on next,” remarks award winning producer, Mark Burnett.
For a camera with that much power, we’d assume it to have a steep price point…Right? Well, the GoPro HERO3+ Black Edition Camera retails for $399.99.
But it gets even better!
 
 

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 DealDash offers the GoPro HERO3 Black Edition on a pretty regular basis, in fact an auction for one is ending right now!

The average end price of the HERO3 is $88.54 (78% off retail)! 

See more at: https://www.dealdash.com/battle.php?auction_id=2047127#sthash.5BgxCOIB.dpuf
Check it out, and learn more about bidding on DealDash in DealDash Demystified
If you have a GoPro camera we want to see some of your videos!
Let us know how you like GoPro and DealDash in the comments section!