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Posts Tagged ‘Penny Auction Online’

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If you do not understand what the penny auction is all about this is a simple example. The owner of the item will state a very low price for an item he wants to sell. For example he can say that a car is sold at only 1 dollar. However, everyone who needs to join in will have to pay a 1 dollar for every bid he gives in. If the person is able to get at least 500 bidders and each person puts on 10 bids.

This means that the owner has already made 5000 dollars. The person who will make 11 bids will take home a car only at 11 dollar. This means that other 499 bidders have already lost their money and they cannot be refunded. Sometime the penny auction can state a very low price for an item to generate the interest while they will still make enough money on the item when many people join in.