MSRP is not always the same as a product’s current market price. For instance: The MSRP on an AeroGarden is $229.95 when in actuality you can purchase it today on Amazon for $99.99.
RockyBid requested that we publish this post in regards to why many penny auction sites, them included, use MSRP for an item’s reference price.
“The (manufacturer’s) suggested retail price ((M)SRP), list price or recommended retail price (RRP) of a product is the price the manufacturer recommends that the retailer sell it for. The intention was to help to standardize prices among locations. While some stores always sell at, or below, the suggested retail price, others do so only when items are on sale or closeout. (Wikipedia © 2009)
That being said the price given is almost always the MSRP as defined by the manufacturer except in cases where the real market (i.e. not just Amazon) is calling for a certain price.
The Penny Auction Purchasing Dilemma
A Penny auction site cannot do enough volume in one product to have great wholesale deals and still offer a cool variety of products to the users. Nintendo, Apple and others will not allow Penny Auction Sites to be wholesalers at all. Very often we must purchase more of a particular item to fulfill orders than Amazon allows us to ship. In these cases we must often pay more than the Amazon price, sometimes much more.
The issue is that Penny Auction Sites are stuck in the middle. We are too big to buy retail at Amazon because we need too many pieces; however we are too small to buy 100,000 iPhones directly from Apple or 100,000 Wii’s from Nintendo. Therefore the MSRP price is always the highest price we find doing a Google search on the day we create an auction. We use this number because we often must pay that higher price in many circumstances, often it is the MSRP or even higher. For instance until last month you could walk into an Apple store and buy a bunch of iPhones 3G’s for contract free $699; now AT&T has told Apple to stop selling them to people that don’t have an AT&T contract, so we must pay a much higher premium to get enough of the phones.  Also, you must remember that prices change all the time. New item auctions are not created and modified every time Amazon gets a steal on 100,000 flat screen TV’s. My suggestion: listen to the other users on www.pennyauctionwatch.com and do your own Google search and see what you feel the price should be. You must decide, “What is that item worth to me?†And, “Can I get it cheaper using a site like www.RockyBid.com?† Happy Bidding!!!” -From Rockybid.com
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