Quote:
Originally Posted by Jakez
Each bid you make is supposed to cost $0.75 so when an iPad goes for $67 it would seem as though the people running the site have made a small fortune ($67 divided by each $0.01 bid = 6,700 bids at $0.75 each = $5,025 made from auctioning a $700 iPad). BUT these people don't pay the regular $0.75 for each bid because they've bidded on 'bidpacks' of 100 or so which can usually go for like $3. So at $3 for 100 bids each bid is only costing them $0.03 and $0.03 X 6,700 bids is only $201, well below the retail price of $730 even if you dont include the ending bid price ($67). Each bid would have to average out to like $0.11 a piece in order for the site to break even. So the only explanation I could come up with is that theres enough idiots paying $0.75 per bid on it that it raises the average bid price and makes them a profit. BUUUUUTTTT, these are expert marked auctions and an expert obviously isn't going to be paying a whole lot per bid. So after thinking I've figured out how this stuff operates at a profit I'm still stumped at how they actually do make a profit lol..
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The bid packs are usually controlled by the power bidders. They like to control things like this, and not let the average get a lot of bids. They would rather pay full price or more for the bid packs if it would keep them out of the hands of average or new users. If you find a site where the bidpacks are going for cheap prices its a possibility that something is not right.
Also another thing to take note of, the power bidders tend to work togather. Its agianst the rules at most places but if you can figure out who are the power bidders you will see other power bidders jump on the auction and help them outbid other users that bid against them.