We’ve found that many seat or reserve-based penny auctions have a hard time getting bidders to meet reserve prices. SharetheSpoils.com, the new penny auction site we told you about last week, has ran three items thus far but they have yet to close one with a winner though they even disclose the reserve prices. Today, SharetheSpoils told us that they’ve removed reserves and have cut the cost of bids in half for a limited time.
If you decide to bid on SharetheSpoils please feel free to join our forum and post about your experiences!
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BPD June 27, 2011, 10:34 pm
Actually, by removing the reserves, they may have stumbled upon a winning plan. I just bid on an auction, no reserve, for an item that normally goes for $50. I didn’t win, but was one of the three final bidders, and with 15 minutes of the end of the auction, I had my winnings in my Paypal account.
The thing is, they split 50% with the three of us, and kept the other $80 for themselves. After charging the $16 for the item, that left them with $46 gross profit on the item. Now, they won’t get rich like that, obviously, but I think they did a lot better than the 5 or 6 dollars in bids they’ve gotten on a couple of other reserve auctions I watched.
Anyway, it’s encouraging to see that they don’t drag their feet on payouts. I imagine that delivery on their items is as least as conscientious. I recommend these folks… they have an innovative idea, and a good business ethic.