Feature Tokens and Bid Credits “as used in our process” are far removed from what you may think. Although the typical stigma assigned to this type of device is often associated with penny auctions, we want to make it crystal clear that the services we provide are in no way and should not be confused with penny auctions.
In our program, these devices serve 4 specific functions. They reduce the likelihood of insincere bidding. They are used to prevent the likelihood of what is referred to as “sniping” or picking off items in the last second. They are used in part to cover costs associated with the item being offered and most importantly as is the case of our Fast Auction, revenue derived from the sale of Bid Credits in excess of the retail value is specifically dedicated as funding for Charity.
So that you may better understand the difference between what we do vs. penny auctions,,…
- Penny Auctions almost always misrepresent or greatly exaggerate the value of the item being auctioned.
- A Penny Auction will represent that the price increases 1¢ with each bid while remaining low key regarding the exorbitant cost of each bid.
- Penny Auctions will discount the value of their Bid Credits. One day the fee may be 90¢ per bid the next it may be 50¢…
- A Penny Auction operator isn’t concerned with value, their only concern is volume and profit.
- Penny Auctions may last several days, making it difficult if at all possible for you to remain engaged.
- The expense of bid credits in a Penny Auction is virtually all profit for the operator and all loss to the unsuccessful bidders.
At the time this Article was written, a Big Screen TV on another bid site displayed an Auction In Process… the current bid on the item being auctioned was $483.26 Doing simple math… in 1¢ increments, that is equal to 48,326 bids placed by what may be thousands of bidders… Calculating an average of 50¢ per bid, that means a total of $24,163 would have been collected SO FAR on a TV valued at approximately $2,500 but wait…. the Auction was still going... and the final amount the item sold for was much higher!
We wonder what looks back when they stare in a mirror?
In our format…, we limit the maximum number of bidders possible to any where from 5 to 500 depending on the value of the item offered. On rare occasions and special events, we may extend free access passes, higher reserve seat limits or unlimited access exceptions OR may increase the maximum number invitation to help absorb costs on a very expensive item. Our Feature Tokens are 25¢ / Our Fast Auction Bid Credits are 10¢. Bid increments will vary based auction dynamics but will almost always be between 10¢ and $1. Should we provide promotional tokens or credits as part of a prepackaged special offer, those credits are designated as complimentary bids only and have zero point value. They cannot be used to redeem catalog merchandise.
While it is true that these devices do provide the possibility for added revenue with regard to the auction process, we present all merchandise offered in the Feature Auctions below our cost therefore the opportunity to take a loss definitely exists for us.. Again, to be clear and so that you understand the difference straight away, proceeds from the sale of Bid Credits received in excess of the retail value for that item is dedicated in support of Worthwhile Causes such as Humanitarian Aid, Environmental Cleanup or Preventing Animal Cruelty and Abuse and other organizations while revenue generated in the sale of Feature tokens along with associated Registration fees collected in Reserving a seat at any given auction are first applied to cover the purchase price of the item being offered.
We hope you see the difference 🙂