We have now launched a new website examining the impact on Swine Flu on the UK.
Now, back to the Penny Auctions.
The recession? How will this affect sales and business for Penny Auctions? In short, I would imagine that the recession would lead to an increase in the number of people using Penny Auctions, even though this may at first seem counter intiuitve.
The basis for this conclusion about who is most likely to use Penny Auctions, is taken from lottery user statistics. Namely, that the people whom play are generally those that can least afford it! This is because Lotteries, scratch cards, etc are ‘inspirational’ products; in my opinion you are not buying a realistic chance of winning, instead you are buying £1 worth of hope, oppertunity, ‘what if’s’. Given the struggle which many people can face when trying to pay the bills and support themselves and their families, this is understandable.
Penny Auctions can be seen to be working in very much a similar way. The chances of winning a product are not all together that great, however the potential reward is great. Also the types of products on offer through Penny Auctions are ‘inspirational’ types. Ones that many on low incomes desire, but can generally not afford. Therefore they try and win them, generally without a dedicated or specialist Penny Auction Strategy - which is highly reccomended. Whilst the bidding represents a better ‘return’ generally than a lottery, many people bidding do not properly understand what they are ‘up against’ or the processes that are used to win.
The recession will see a higher number of people out of work, with many in the lower classes being hard hit. Those whome are unskilled and have basic, low paid jobs are often the first to be made redundant. Therefore, they will have an increased amount of spare time, and so an increased likely hood of logging onto a Penny Auction website. Also given the situation of unemployment may make the appeal of winning a desireable product all the more likely, therefore increasing the user base of Penny Auction websites, especially of those that may not apply the correct strategy.