This is probably one of the most lucrative money making platforms I've seen online - penny auctions... or in our case, centavo auctions.
How does this work?
You basically need to buy bids. Buying bids isn't about spending P12 to bid an additional P12 on the item. What basically happens is that you buy a bid for a certain amount and you use a bid to possibly win the item.
Upon buying, bids are then used on items you want. Bidding on an item increments its value by P0.01 and once you use that bid, you don't gain it back if you fail to win the item.
How much are the bids?
Let's simply look at two of PisoBid's packages - the most expensive and cheapest.
12 Bids = P200
1400 Bids = P10,000
12 Bids at P200 equates to P16.66 per bid
1400 Bids at P10k equates to P7.14 per bid
Example
In this situation, an iPad 2 16GB is being auctioned and somebody was able to win and buy it at a very cheap price of P212.82 when it actually retails at P30k.
If you calculate on that, P212.82 equates to 21,282 bids. 21,282 bids equates to having PisoBid make between:
P151,953.48 @ P7.14 (cheapest bid rate)
and
P354,558.12 @ P16.66 (most expensive bid rate)
Basing on an average of P253,255.80, PisoBid made a profit of around P223,255.80.
It's crazy. I actually found out about this from an international penny auction site and thought I saw this a website doing the site locally and I was right.
Imagine, on PisoBid's part, they spent only P30,000 for the iPad2 and people used up more than hundreds of thousands of pesos just to be able to win it at a 'relatively cheap' price.
What's great about it here for PisoBid is the awesome marketing effect this will have wherein people will be bragging a great deal about buying such cheap items.
Penny auctions are legit, the only tricky part of it is the gamble considering how bidding actually makes you spend whether you win the item or not.
Bloggers always count the profit of Pisobid. What about their losses? I think marami rami na rin ang mga items na naipamigay sa mga tao na hindi umabot sa ROI. You can visit their winners block here po and do computations yourself.
http://pisobid.com/Winners.aspx
Siguro nga maranmi na rin silang kita, pero marami din silang losses na I think na compensate ang profit nila. Katulad na lang ng mga items na ito:
http://pisobid.com/Auctions/Xbox-360-4GB-Kinect-Bundle/3222
http://pisobid.com/Auctions/Nikon-AW100-Underwater/3214
http://pisobid.com/Auctions/Canon-Powershot-A800/3106
3 items lang yan this week. Hindi pa kasali ang mga free bids na na bid ng mga newly registered bidders.
To make it fair po para sa mga tao, a computation with losses would be great.
Nice observation, Mich. Though I honestly think losses are far less than the profit mainly because the bids are prepaid.
It’s kind of like how Groupon or any other deal sites manage to offer such discounts, it’s because the deals aren’t used immediately, in the same manner the bids aren’t used immediately, mainly because there is an interval of auction times.
Chances are kahit may apparent loss sila on items like these, may mga unused bids parin from people who either don’t like the item or didn’t manage to use all the bids. These bids alone are stagnant money on the part of the user pero money which can be used on the part of PisoBid or any other penny-auction platform.
I believe the only losses penny auction sites manage to consider are the ones at the start of the operation where they really need to shell out items for promotional purposes. But that’s just my opinion
Guys, have you seen the PisoBid Chief Admin reacts on the blog of pauldoh?
http://strawhatjp.com/2011/08/is-pisobid-legit-or-scam
Eto ang sabi ni PisoBid admin
Well, I must say that I enjoyed reading your blog post and all of the comments
It’s nice to see that our website generates so much interest and we can only hope it’ll stay like that for a long time. We enjoy running auctions, we enjoy developing technology that’s behind it, we enjoy interacting with community… so for every single one of us in the team, Pisobid has been one huge, trilling ride that just keeps on giving.
And that’s also what we want for our customers. I see that some of the commentators call us “high-handed”, “tough” and “non-flexible”. Sure, we are like that. And we don’t see why that would be an issue – we have reputation and customers to protect and for sure we won’t cuddle anyone with warnings every minute or so. When you register, we are very clear on what is allowed and what is not allowed, and it’s up to every single user to decide whether he wants to be protected or prosecuted by the rules.
Would we like that situation is different? Sure – we would LOVE if all of our customers would play fair. When we first launched the site we actually didn’t have any built in control for fraud. How that worked for us? Pretty awesome – some of the fraudsters registered as much as 100 accounts. When we cornered some of them and asked to explain how they are not at least bored to create so many accounts for 5 bids and switch between accounts every now and then, you know what they said?
I haven’t created any extra accounts.
So since then we have embarked on a mission to expand on security of our system. We knew that small number of people will be against it, but we also knew that majority would welcome fair and safe bidding environment. Most don’t know, but our development team is actually based in United States (offices in San Francisco and Saint Louis) and is pretty well connected. We have partnerships with Yahoo, Facebook, Google and many others, that allow us to analyze some of their tracking data (I am pretty sure that you guys know how Facebook collects your browsing history on every web page that has Like Button) and thus we can really protect fair bidders on our website from those who are not. So, we are confident that we will always be the only choice for 95% of customers since we can offer what none other Philippines bidding site can when it comes to quality of bidding environment.
And while we are this subject – I wanted to wish all the best to those who are trying to be our competitors
. No, seriously – we don’t see any of you as a real threat; plus without you guys, people we block would have nowhere to go and we would need to dedicate more resources on preventing them from coming back to Pisobid. So, keep copying our Terms and Conditions, auction schedule (well, at least the cheap items from the schedule), and all other stuff you want – we sincerely don’t mind, as long as you can keep doing such a good job of helping us concentrate on features and business development, rather than meager daily tasks.
To conclude – thanks to all of you who have supported us so far, thanks to both papa888 and fortdan023 for their testimonials (we miss you guys
and thanks to the owner of this blog for investigating our offering and providing place for good discussion. We are looking forward to being a part of Philippines Internet scene for many years to come; and we can only hope that we will always be there to provide fun bidding environment and exciting prizes for everyone.
And just to repeat one final thing I always say – if you run into any problems using Pisobid, please do not hesitate to contact us over our support channel on http://pisobid.com/contactus.aspx ! We are always glad to help!
Chief Pisobid Administrator
admin@pisobid.com
http://pisobid.com
http://www.facebook.com/pisobid
= = = = = = = = = = = = = =
Very well said.. Galing!
Ahhhh… PisoBid gets their money on the bid packs purchased by the bidders.
Newbie pa rin ako but I am studying the site first so that I got a big chance to win.
Anyways, I checked the winners block and computed the winning price gamit yung formula. Minsan nakakabawi rin, minsan loss talaga. Lugi minsan talaga ang PisoBid.
If minus the retail price and minus the starting price which 1.00 (100bids), maliit lang ang income ng PisoBid.
It is just fair to include the losses of PisoBid para naman aware ang mga bidders na hindi puro pera ang PisoBid. They also risk their money sa PisoBid.
Nakakatuwa naman ang comment ni PisoBid admin. =)
I am too an old PisoBidder but now I really don’t have the time to bid.
Nagkasabayan pa kami ni papa888 dati. Grabe ang mga nakuha niyang item. I also followed him sa other sites, same pa rin palaging panalo. I don’t know kung ano ang ginagawa niya but any auction na sinasalihan nananalo talaga.
Good for PisoBid at nakita nila ang ginagawa ni papa888 at sa mga other bidders. That way, they gave newbies the chance para mag compete without those players na humahakot ng mga items.
For me, secure ang mga PisoBid members. 24/7 naman nagmomonitor ang customer support nila and aside from that you can tell them if you noticed someone who is doing teamplay and all that stuff para ma check nila ang they will do the right action for those people.