How to Win Penny Auctions

Image via CrunchBase

This entire website is dedicated to both helping you find the best penny auction sites to play on as well as figuring out how to win penny auctions. You have all undoubtedly seen the advertisements for “iPad 2 Sold for $19.22″ and of course wondered how someone was able to get such an expensive product at such a huge discount. Within this article you will hopefully learn how to win an auction, although their is obviously no guarantee that reading this article will get you an iPad for a cup of coffee.

So what should you be doing first? The first thing that I would recommend to anyone who is looking to win a penny auction is to do some market research. To often people will sign up for a site and immediately begin bidding. While you should sign up and purchase bids so that you can pounce on an opportunity should one present itself you are better off being patient. Scroll through the pages of the website and figure out what you are up against in every auction. The best thing that you can do is to figure out what the average price of an item is. For instance if you see an iPad with 10 seconds left and a bid of .05 you might be inclined to bid, but by doing so you are merely wasting a bid. Rather figure out what the average sale price is for an iPad and use your bids when the sale price reaches that level.

One thing you also need to avoid is a bidding battle. What you will often see is a new user on a site fall in love with the action and he/she is bidding every single second. You might be inclined to keep bidding up against this person, but some battles are better left alone. Odds are this person will use all of their bids in the early stages of the auction, and when the real bid time comes around he/she has run out of bids and is back on the sidelines wondering what could’ve been.

Lastly the major thing you should avoid is bidding to early inside of an auction. Some people see a low price tag and immediately bid when in reality you should never be bidding unless the timer drops below 5 seconds and the product is in your average price range. Not following those two rules is a surefire way to lose bids, and no one wants to do that!

So hopefully this article has helped teach some of you how to win penny auctions, and if you have any specific questions don’t hesitate to leave a comment below and let us know what you think.