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Any good lowest unique bid sites people use?

Started by BID4noREASON66 , Sep 15 2011 02:33 PM

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#21

BID4noREASON66
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I'm not following...I think the odds of winning are determined by the maximum number of players, not the minimum?? For instance, if the min was 1,000 and the max was 3,000, how would you calculate your 'odds'?


I wouldn't necessarily calculate it using the maximum. If you had an auction with 500 min and 3000 max vs a 1000 min and 3000 max. If 750 were to participate, the 500 minimum auction would be the obvious better choice.

#22

Vandelay
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I wouldn't necessarily calculate it using the maximum. If you had an auction with 500 min and 3000 max vs a 1000 min and 3000 max. If 750 were to participate, the 500 minimum auction would be the obvious better choice.


I'm still confused...if you know exactly how many people are in the auction (750), you know the exact odds (strategy not counting). But, if you don't know the exact number, it seems like you'd want to 'worst case' the situation and use the max. I'm missing something...??
Rick Willis

MyBucketListAuctions
build it, bid it, win it

#23

BID4noREASON66
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The auction with the 500 minimum will reach that minimum level with 750 users

The auction with the 1000 minimum will not reach the minimum level with the 750 users

If I were to join one of these auctions while there are only 250 out of the 750 users, I would want to join the auction with the 500 minimum right? Why would I join the 1000 auction? I would only have 1/1000 at BEST vs if i joined the 500 minimum auction I would have 1/500 at best case.

Does that make any sense?

#24

Vandelay
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The auction with the 500 minimum will reach that minimum level with 750 users

1. The auction with the 1000 minimum will not reach the minimum level with the 750 users

2. If I were to join one of these auctions while there are only 250 out of the 750 users, I would want to join the auction with the 500 minimum right? Why would I join the 1000 auction? I would only have 1/1000 at BEST vs if i joined the 500 minimum auction I would have 1/500 at best case.

Does that make any sense?

Got it...

1. you're exactly right.

2. sort of...the minimum number is what we need to break even and the max is a semi-arbitrary number set out of a sense of 'fairness'. the actual cut off point - the number of folks the you will be competing against - falls within that range. given that the value of the package is public and the entry fee is public, if you add in an estimate of our other costs of doing business (profit not included) you can get a ball park minimum number. once we've developed a reasonable history we'll publish what the average # of players is for each auction level.

did you have a chance to use the bucket list builder?
Rick Willis

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build it, bid it, win it

#25

Vandelay
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dupe

Edited by Vandelay, 21 September 2011 - 01:25 AM.

Rick Willis

MyBucketListAuctions
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#26

BID4noREASON66
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Not yet.. Not sure if I would play on the site.. Seems like it'd be difficult to win.. Payout is huge but chance to get that seems pretty slim..

#27

Vandelay
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You can mess around with the bucket list builder w\o registering.

Assuming everybody was equally skilled your odds (worst case) are;
1:2000 for $50k
1:2500 for $200k
1:3000 for $1 million
safe to say there will be a significant disparity in skill levels :cool:

interested to hear what your strategy would be....
Rick Willis

MyBucketListAuctions
build it, bid it, win it

#28

BabyFidgette
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I l♥ve the Smartbid like you B4noR. It's challenging, but d*mn expensive! :P

#29

dwbiz05
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I agree with B4... The initial buy-in is pretty steep compared to the odds of winning.

The prize package creation idea is unique, but I wonder if you should start with smaller prize package options and see how it works on a smaller scale, especially in this economy.

Maybe being able to build things like:
1. Dream kitchen (or other room where they select the appliances or furniture)
2. Movie collection (up to 100 movies)
3. Music collection (up to 2000 songs)
4. Weekend Getaway (instead of a dream vacation)
5. 6 months of rent or mortgage payment (up to $xxxxx.xx)

These are just some quick thoughts of course, but something that's not $50k minimum and doesn't require thousands of entrants to cover the cost, but still gives the user some choice in the matter like you currently have.

Dave

#30

dwbiz05
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One thing that confuses me... ok maybe more than one, but I'll try to keep it to just one question... lol!

So, you build a bucket list, then pay the registration fee.

It's not clear exactly what happens next, because it says you're joining YOUR auction, but I don't see where other people can join your auction.

Based on my examination of the Overview section, I believe that there are only 3 actual auctions going on at any given time: $50,000, $200,000 and $1,000,000 auctions.

So while each person is competing in that one auction, say $50k, they are all playing for their own bucket list. You're not actually setting up an auction with the items you want to win and having lots of people bid on the same thing. Everyone is just bidding on the $ value as 1 auction and the winner gets his/her bucket list.

The more I read it over the more it seems that is the case. So, either I'm just dumb or you may want to re-think how some of your explanations are worded. If I'm correct, that is an even cooler concept than I thought before, but I still think you should start with smaller options as well. The buy-in doesn't necessarily have to be smaller, just the odds of winning. It's easier to justify going against 50 people than 2000.

Dave

#31

dwbiz05
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Vandelay, just noticed your location is KC... I'm in Independence. LOL!

Dave

#32

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I agree with B4... The initial buy-in is pretty steep compared to the odds of winning.

The prize package creation idea is unique, but I wonder if you should start with smaller prize package options and see how it works on a smaller scale, especially in this economy.

Maybe being able to build things like:
1. Dream kitchen (or other room where they select the appliances or furniture)
2. Movie collection (up to 100 movies)
3. Music collection (up to 2000 songs)
4. Weekend Getaway (instead of a dream vacation)
5. 6 months of rent or mortgage payment (up to $xxxxx.xx)

These are just some quick thoughts of course, but something that's not $50k minimum and doesn't require thousands of entrants to cover the cost, but still gives the user some choice in the matter like you currently have.

Dave


Dave,

Appreciate you taking the time to look it over and offer feedback.

We're looking at adding a 'test drive' auction that may be in line with your recommendation; $12.50 entry fee for $1,000 standardized prize. ???
Rick Willis

MyBucketListAuctions
build it, bid it, win it

#33

dwbiz05
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Well, I think what makes your site unique is the "build your prize" option and the fact that you have to partially build it prior to participating in the auction.

So, if you can add the options for smaller bucket lists / auctions with that smaller entry fee then I think you will get more users more often.

I'm not sure what your required users would be for the test auction(s), but assuming it's 100 users, that's $1,250 minus any processing fees. Most PA users are used to spending $30 - $50 per bid pack, so you could even cut down the competion by increasing that initial fee. Say $25 buy in (plus your getting extra if they buy more bids) and only have to compete against 50 people (total revenue of 1,250 - fewer processing fees since there are fewer purchases).

The bucket list is great because it gets people engaged in the process before they put up their money! :)

Dave


#34

Vandelay
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One thing that confuses me... ok maybe more than one, but I'll try to keep it to just one question... lol!
1. So, you build a bucket list, then pay the registration fee.
2. It's not clear exactly what happens next, because it says you're joining YOUR auction, but I don't see where other people can join your auction.
3. Based on my examination of the Overview section, I believe that there are only 3 actual auctions going on at any given time: $50,000, $200,000 and $1,000,000 auctions.
4. So while each person is competing in that one auction, say $50k, they are all playing for their own bucket list. You're not actually setting up an auction with the items you want to win and having lots of people bid on the same thing. Everyone is just bidding on the $ value as 1 auction and the winner gets his/her bucket list.
5. The more I read it over the more it seems that is the case. So, either I'm just dumb or you may want to re-think how some of your explanations are worded. If I'm correct, that is an even cooler concept than I thought before, but I still think you should start with smaller options as well. The buy-in doesn't necessarily have to be smaller, just the odds of winning. It's easier to justify going against 50 people than 2000.

Dave

1. yep. you could pay first and then go build your list, though.
2. let's say you join the gold auction. once in you'll notice it has a unique identifier...Gold 001 for instance. until we've reached the magic number of entrants, everybody else who signs up for the Gold auction will also go into Gold 001. Once we reach the magic number, the next person who signs up for Gold will essentially 'open' Gold 002.
3. In general, you're right. there could be more than one auction at the same level going at the same time, but that's highly unlikely.
4. Exactly!
5a. We're really going to have to spend some time and money on the explanation part. It's challenging to develop a game that requires a good deal of smarts and allows strategy to prevail, and at the same time explain it quickly and effectively. We'll do some more embedded youtubes and power points....any other ideas?
5b. There's a four-way balancing act with the numbers; entry fee - prize - odds - margin. What we've tried to do is offer a mix that would appeal to a wider range of customers. We're working on adding a lower cost, better odds, lower prize, lower margin auction.

How much would you be willing to pay to compete against 49 other players for how big a prize?
Rick Willis

MyBucketListAuctions
build it, bid it, win it

#35

Vandelay
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Well, I think what makes your site unique is the "build your prize" option and the fact that you have to partially build it prior to participating in the auction.

So, if you can add the options for smaller bucket lists / auctions with that smaller entry fee then I think you will get more users more often.

I'm not sure what your required users would be for the test auction(s), but assuming it's 100 users, that's $1,250 minus any processing fees. Most PA users are used to spending $30 - $50 per bid pack, so you could even cut down the competion by increasing that initial fee. Say $25 buy in (plus your getting extra if they buy more bids) and only have to compete against 50 people (total revenue of 1,250 - fewer processing fees since there are fewer purchases).

The bucket list is great because it gets people engaged in the process before they put up their money! :)

Dave

how 'bout this....
$25 entry fee
$500 prize
50 players
Rick Willis

MyBucketListAuctions
build it, bid it, win it

#36

dwbiz05
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I think you're on the right track, plus, I think it will help detect the interest level in your auction structure too, without (possibly) having to refund a bunch of registration fees and stuff, if you end up having to retool anything after user testing.

Also, I don't know your financial situation or your fee structure, but the average joe can look at those numbers and deduce that, at least on paper, you're making 1.5 times the prize value in profit (50 * 25 = 1250 | 1250 - 500 prize = 750 "profit"). That may deter some people but that's what testing is for, figuring out what will work best for your situation and clientele. Of course there is always that constant struggle to make sure the venture is profitable too... lol!

You don't have to justify anything to me or this forum on your pricing, just pointing out what might go through some bidders minds, especially people new to PA sites. When I first saw PA's I thought, man, these guys are raking it in hand over fist... though in reality it's not true in most cases. lol

Dave

#37

Vandelay
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I think you're on the right track, plus, I think it will help detect the interest level in your auction structure too, without (possibly) having to refund a bunch of registration fees and stuff, if you end up having to retool anything after user testing.

Also, I don't know your financial situation or your fee structure, but the average joe can look at those numbers and deduce that, at least on paper, you're making 1.5 times the prize value in profit (50 * 25 = 1250 | 1250 - 500 prize = 750 "profit"). That may deter some people but that's what testing is for, figuring out what will work best for your situation and clientele. Of course there is always that constant struggle to make sure the venture is profitable too... lol!

You don't have to justify anything to me or this forum on your pricing, just pointing out what might go through some bidders minds, especially people new to PA sites. When I first saw PA's I thought, man, these guys are raking it in hand over fist... though in reality it's not true in most cases. lol

Dave

Appreciate the insight. Think you're exactly right on the 'average joe' financial aspect....which is another reason we don't publish the minimum number of players for each auction.

I'm never sure how to respond to the "assumed profit" issue. If you don't address it, people can feel as if you're getting rich at their expense. If you do address it, somebody will want to engage in a micro-economics battle regarding your P&L....and the internet is probably the worst medium for having that discussion.



...don't know....anybody have any recommendations on how to handle the assumed profit issue?
Rick Willis

MyBucketListAuctions
build it, bid it, win it

#38

dwbiz05
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That's a good question...

I'm inclined to just give people a general overview of how the money is divided up in a "Where does my money go?" type section of the website.

Something like:
60% goes to product purchases
10% goes to shipping costs / purchase processing fees
25% goes to daily office expenses (salaries, rent, website upgrades and hosting, etc.)
5% investor profits

Obviously these are just thrown out there but that's my idea, just something generic that shows it's not all going into "The Man's" pocket. lol

The site I'm working on is a little different in the way it's set up. It's very simple for someone to tell if I'm making a profit or taking a loss on an item based on the selling price, if they use a little math. There is about a 5% swing either way based on the final auction sale price.

However, there are things they don't and shouldn't know, such as your, employee salaries, office expenses, any discounts on the items you purchase and your actual shipping costs. I don't think those specifics need to be laid out in detail, just all wrapped up into one.

Another nice thing is if you donate a specific amount to charity, it's a good thing to list as well. lol

That's just me and maybe most people don't care or don't even want to know as long as they get a good deal... who knows. lol!

Maybe some other owners and / or users will jump in and offer their 2 cents (only costs $2... lol).

Dave

#39

BigHumpDaddy
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Vandelay, just noticed your location is KC... I'm in Independence. LOL!

Dave


Dave, a few of my favorite BBQ places here in KC are Oklahoma Joe's BBQ In Kansas City and Arthur Bryant's BBQ in Kansas City

I have heard that Fat Charlies BBQ hut in Independence is good, and will probably head there this weekend sometime. I like fat cooks. Lets me know the food is good and cooked with love, so the name is okay by me. ;-)

BigHumpDaddy

* My apologies... not trying to hijack the thread.

#40

Vandelay
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Dave, a few of my favorite BBQ places here in KC are Oklahoma Joe's BBQ In Kansas City and Arthur Bryant's BBQ in Kansas City

I have heard that Fat Charlies BBQ hut in Independence is good, and will probably head there this weekend sometime. I like fat cooks. Lets me know the food is good and cooked with love, so the name is okay by me. ;-)

BigHumpDaddy

* My apologies... not trying to hijack the thread.

Nothing improves the quality and character of any discussion so much as the introduction of favorite BBQ joints.

That being said, lick your fingers and give us your feedback on www.mybucketlistauctions.com :wink:
Rick Willis

MyBucketListAuctions
build it, bid it, win it




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