In this post on how to run your own Penny Auction, we will be looking at why all the systems use bid packs - and how they can be used to make your penny auction website the best it can be and increase its revenue to a maximum.
By using bid packs on your website, you have now gained two advantages - compared to if you didn’t use them. Firstly, there is not guesswork about what your cash income will be, and therefore a greatly reduced risk concerning the amount you can spend on prizes. This is because in affect, the bids have already used by the bidder! They are now merely ‘allocating’ their bids on which ever item they would like. Whereby the number they allocate will increase the likelyhood that they will win the item being auctioned off. Although timing, bidding ‘personalities’, time and the current price of the item are all part of the equation as well. Which brings us onto another penny auctions strategy. Never bid on items already under progress. In fact, the first time you use these types of websites, it may be advisable to not bid at all. Instead, just sit, watch and take not. In many respects, Penny Auctions are simmilar to Poker in many respects. Whilst poker may intially seem very much like a game of pure chance, in reality it is not. There is a great deal of skill involved in becoming a good player. In many respects, you are playing the people not the cards. Online is the same. Sit, wait and look at how people place their bids. Do they wait till 0 seconds left? Do they bid straight after you? How agressive are they? It is alll about getting inside their head and looking at the penny auction from their perspective. How badly do they want the item, what are they willing to do to get the item on the penny auction website?
Once you begin to understand your opponents, you will begin to understand how to maximise your efficiency and use tactics to win the products that you desire from the penny auction website.