How many times have we heard complaints about penny auction websites?. The word scam is often used alongside an article about penny auctions. Bid shilling, Bots, are few examples
of stratagems used on penny auction websites to fool customers. A bad reputation follow this model, not helped by penny auction website running out of business and new sites opening everyday.
At PonGow.com we decided to brainstorm on this issue and to come up with a model that would combine customer satisfaction, a safe environment and fair bidding practices. That is why we introduced the concept of reserve price. Reserve price allows us to gauge the success of a product, but also, gives our customers bid credit back.
Each auction has a reserve price. We calculate the reserve price based on several parameters including shipping costs or sales taxes. As long as the reserve price is not met, the timer will reset itself every 30 minutes for no longer than 24 hours.
With this concept everyone is safe, and no one loses. In most cases, members have the opportunity to “buy now” items at MSRP price minus cost of bids, which turns PonGow into a discount retailer.
We just introduced a speedy auction feature which allows members to bid on items for auctions lasting 2 mins, once the time expire, the auction is reset to 2 minutes until the reserve price is met and there’s a winner.
We definitely believe in Penny Auctions as an opportunity for consumers to get the products they want at incredible savings, while the model is still financially sound.
Making penny auctions a legit business is our Goal at Pongow.com.
We are welcoming any comments or questions.
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