Penny Auctions, yeah, they’re scams, Stupid!
Posted by UFreak in 
Some might win, but its probably NOT gonna be you!….D’you REALLY think a 42″ TV would be yours for $7?…Really?….
All penny auctions, regardless of reputation, are a bad idea and should be
avoided.
First of all, “QuiBids.com” and other penny auction sites require people to
pay for the option to bid, but don’t allow them to bid in increments of their
choosing. This means that QuiBids is forcing the price up and profiting all the
while.
Penny auction websites attract people to them by promising expensive, big
ticket items at unbelievably low prices – for example, QuiBids shows a new
iPad, which retails at $499 for the most basic model, selling for $22.54. But
this winning bid of $22.54 is misleading. This isn’t the truth of how much it
costs to win that iPad.
The way penny auctions work is that you are only able to bid a single penny
at any time during the auction. However, at QuiBids.com, you must purchase each
1 cent bid for 60 cents. So an iPad that retails for $499 but was won for the
grand total of 2,254 one cent bids (or $22.54) which actually cost 60 cents
each means that the iPad just sold for $1352.40.
Though the person who wins the item usually has paid less than retail for
what they have received, citing $22.54 as the winning bid is extremely
misleading.
On eBay, the seller and buyer have the auction monitored by the website,
which is the trusted third party. On QuiBids.com, there is no trusted third
party. QuiBids is the seller and the auctioneer. It works in their favor – and
their favor only – to drive the price up in these small 1 or 2 cent increments.
QuiBids attempts to redeem themselves by offering you the “By It Now”
option, which is when you can take the total amount of your failed bids and
apply that toward the retail price of the item you were bidding on. Say you bid
$80 total on an iPod Nano that cost $150. For the remaining $70, Quibids will
sell you a Nano. Well, $70 plus tax, fees, and shipping and handling.
With the added “fees,” tax, and S&H, that Nano will cost you more than
it would at Apple, and usually much more than it would at a discounted retailer
like Amazon.com or Target. In addition, QuiBids is not an approved retailer of
Apple – or any major brand name – products.
This means that if you get the item from them, the manufacturer warranty is
void – if it breaks within the first 60 days, you will not be able to get it
repaired or exchanged. If you have a problem within the first 30 days, QuiBids
will refund the final auction price you paid, but not a single dime of the bids
it took to win the auction.
It’s much better to stick to legitimate auction sites like eBay, instead of
spending lots of frustrating time and effort on penny auction websites like
QuiBids.com.