If you enjoy gambling and losing money at casinos, you will like this "auction" website.
You are not really "bidding" per se, but rather you are gambling to have an opportunity to pay the "low" final sale price. Each "bid" costs a dollar. When you bid, this adds a "penny" to the final sale price of the item and if you win, then that's the price you will pay for the item.
Ie: Printer auction currently at 0.39 cents
You pay 1.00 to become the highest bidder
The Printer will now only cost you 0.40 cents + the dollar you spent to purchase the bid.
The problem here is, so are 7,589 other bidders also hoping for the same exact opportunity you are to pay a "low price" at the same time.
Oh did, I mention that if a bid occurs before the last second during the countdown then the timer resets back to 20 seconds again and starts the countdown all over again? I suppose this element adds to the "bidding excitement" lol
Of course the "lemmings" will always come out of the woodwork and wait for the last second to place their bid too so they can also come out as the highest bidder while the clock is running down again. A 10 second countdown can literally go on for hours while the final selling price is driven up exactly 1 penny at a time.
Yes, other people are actually thinking "they" are somehow the only bidder out of 7,589 other bidders, who are also "sniping?" the item at the so called last second to "win" the item. Folks, this is NOT like eBay here. Not at all, but the process gives you that impression while watching the countdown timer on the screen while you anxiously wait to "snipe" the item at the last second. (Which never happens.)
Basically, It's a well engineered bidding war by design with the intention of draining your pockets during the process $1.00 at a time.
Every bid you place costs $1. So it's not uncommon for someone to spend $100 bucks for the opportunity to win a 50" HDTV at the final sale price of only $200 bucks. This sounds like a pretty good return on investment right?
...If you actually beat the odds that is.
If not, then what? - Well, you just lost $100 bucks on buying "bids" and won nothing at all.
The problem here is in the fact that users placing bids are driving the final cost of the item up by only 1 penny at a time. This is hardly going to eliminate any bidding competition and somehow cause other bidders to suddenly "drop out" of the auction and go away.
Keep in mind a $100 bucks worth of purchased bids will drive up the final selling price by only $1.00. So because of this idea, there is a continued incentive for thousands of other people to continue bidding on the item while you just lost $100 bucks because you maxed out and and ran out of your "bid money" to continue the process. (Does that sound like a slot machine?) Then the next guy in line also runs out of his "bidding credits" or $100 bucks - your choice. So this process continues until everyone maxes out thier available bidding funds and then someone comes along eventually and actually wins the item.
One thing is sure.. There will only be 1 winner in this equation. Always.
This means out of 7,589 bidders there will be 7,588 losers who just lost the same $100 bucks worth of bidding cash you just did.
So you might ask how can anyone afford to auction off a $4,000 TV set for a selling price of only $200 ?
Sure, this actually happens. Someone really wins! The auction owner has to actually relinquish a brand new $4,000 - 50" HDTV for only $200 to someone. No scam here. Perfectly legit and they actually do this. ..And why not?!
...After all, the auction just earned him $20,000 for a $4,000 TV set? - Not a bad deal eh?
This is because if you do the math, you will figure out that the 200 bucks for the 50" HDTV equates to mean it will cost bidders 20,000 pennies to reach that level. Translates to mean that 20,000 bids have just occurred to reach that $200 final sale price, each bid costing bidders $1.00 each !!! = $20,000! etc..
So the next day, the auction owner will go out and buy another $4,000 50" HDTV for another "lucky winner", Mere "chump change" at this point after the $16,000 in profit he made from the losers during the last auction. - Rinse, lather, repeat and continue to fill up bank account. (Why didn't I think of that? lol)
The site resembles an "auction" site but it really isn't an auction taking place at all. Pressing the "Bid" button in the reality of things is just like pulling the handle on a slot machine.
It's not really a "scam" because there is actually a real winner. But rather, it just takes advantage of the "human condition" and preys on the mentality of people who might think they will actually beat the odds and get something expensive for little or nothing.
Got to hand it to the guy. He's actually making a boatload of cash with this "online auction" arrangement.