Is a scam?

Before signing up for a penny auction it’s important to learn how these things really work. The reality is penny auctions realistically shouldn’t be called penny auctions, truth be told the “penny” in a penny auction could in fact be called 10 cents, 20 cents, 30 cents, a point, a token or even a credit. Do you follow me here? The term “penny auction” in regards to is nothing more than a marketing gimmick. Truth be told nothing on is being sold for pennies. Below I will prove my point. penny Auction is nothing more than a marketing gimmick – I’ll prove it to you!

Before you sign up for anything personally I recommend reading the terms and conditions that’s first and foremost, below is a brief explanation of their terms and conditions for the record the date in which i’m writing this is April 2011 so depending on when you read this things on may have or may not have changed.

Purchasing Tokens (“Bidoos”)

11. Under reservation of other dispositions outlined within these terms and conditions, you must purchase tokens called “bidoos” in order to have the right to participate in an auction on the Website. A bidoo is priced at $1.00 plus applicable taxes. Bidoos can be purchased on our Website by following the relevant instructions. These are payable by credit card through the PayPal electronic payment service or the provided telephone payment service. Note that the 6% transaction fees are not refundable following completion of the transaction.

also if you sign up for and want to pay a penny to bid you get this message.

“Each bidoo costs only $0.70!”

Something else to think about is the prices you pay to purchase “bidoo’s”

25 bidoos$17.49

50 bidoos$34.99

100 bidoos$69.99

200 bidoos$139.99

How really works!

There’s nothing wrong with making a profit, but don’t be fooled into thinking that anything on is being sold for pennies, in the example above the cheapest bid pack is being sold for $$17.49 and lowest price people pay to place a bids seems to be 70 cents. My point is the term penny auction is nothing more than a marketing gimmick. Their use of the word “penny” could have easily been replaced with credits, tokens or points. It’s similar to taking the kids to chuck e cheeses and buying them tokens so they can try and win tickets to purchase overpriced candy and toys!

Penny auctions are borderline gambling without the cash payoff! But… if you play your cards right you might be lucky enough to come away with a nice prize. The odds are obviously against the consumer so personally I would approach with caution, you may also want to read the rules and follow some of their tips before signing up.

Final thoughts on

Personally I wouldn’t call a scam unless they’re not delivering their goods to the winners of their auctions. Personally I would never waste my time at it’s way too risky for me plus most of the items they have up for auction are things I can buy at Wal mart or Canadian tire for less than $17.49 and I won’t have to wait on delivery. That being said do not let my opinion stop you from signing up for just don’t say I didn’t warn you!

Please leave your comments or your experience with it helps others!