Feature Tokens and Bid Credits “as used in our process” are far removed from the stigma associated with penny auctions. We want to make it crystal clear that our opinion is that these types of auctions (Penny Auctions) provide impossibly low odds of winning and are anything but fair or honest. Our methods adhere to highly principled and ethical practices. The services we provide should in no way be confused with, or misconstrued as a penny auction site.
In our process, tokens and/or bid credits serve 4 specific functions.
- These devices are used in part to cover costs associated with the item being offered not achieved through accumulation of registration fees.
- These devices are used in part to cover items listed in the Point redemption Catalog.
- 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 earmarked 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
An actual example:
At the time this Article was written, a Big Screen TV on another frequently advertised bid site displayed an Auction In Process… the current bid on the item being auctioned was up to $483.26 Doing simple math… in 1¢ increments, that is equal to 48,326 bids placed by what may be thousands or tens of thousands of bidders… Calculating an average of 50¢ per bid, this demonstrates a total of $24,163 would have been collected at that point on a TV realistically priced at approximately $2,500. But wait…. the Auction was still going... and the final amount the item sold for was much much higher!
We hope you see the difference 🙂