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Anyone used Quibids?
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<blockquote data-quote="Suicide Bobb" data-source="post: 7287863" data-attributes="member: 617319"><p>Let's take an iPad for example. $500 new, and that's likely how much the company paid for it.</p><p></p><p>Each bid costs you $0.60, and they come in a 100 pack for $60 total. Each bid is worth $0.01.</p><p></p><p>Typically, iPad auctions end at around $50. Multiply $50 by 100 (since each bid is worth $0.01), and you get 5000 bids placed, each of which the company made $0.60 off of. That means the company gets $3000 in the pocket off that one auction. Add in the $50 final price and subtract the $500 initial cost, and they net $2550 in profit.</p><p></p><p>The consumer pays $50 for the final price, probably $30 for shipping &amp; handling, and however many bids they made times $0.60. In the end, the consumer gets a $500 ipad for probably under $100. It's a win-win situation!</p><p></p><p>Of course, the company still has other things to account for. Advertising (which they also make money off of for having other sites advertise on their website), the warehouse (and maintenance), the costs of the goods, website development (which includes maintenance, improvement, design, etc.), licenses, patents, a customer service line...the list goes on. But the sheer amount of money they make off one sale, of which they do probably hundreds daily, makes this a very profitable business from the looks of it.</p><p></p><p>I would love to hop in and compete by making a similar service but without requiring the purchaser to pay the final price and without fixed amounts of auction win's per 28 day period, but one, I don't have the money to invest, and two, it's a pretty difficult market to hop into. I doubt that Quibids has a monopoly on the penny auctions, it's just that the idea is so hard to believe that requires HUGE amounts of advertising (and difficult kinds of advertising at that) in the beginning, and it only runs smoothly with high traffic, something that is extremely difficult to generate from the beginning. But if I had the money to invest and could persevere until traffic picked up, there is much gold at the end of that rainbow //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif</p></blockquote><p></p>
[QUOTE="Suicide Bobb, post: 7287863, member: 617319"] Let's take an iPad for example. $500 new, and that's likely how much the company paid for it. Each bid costs you $0.60, and they come in a 100 pack for $60 total. Each bid is worth $0.01. Typically, iPad auctions end at around $50. Multiply $50 by 100 (since each bid is worth $0.01), and you get 5000 bids placed, each of which the company made $0.60 off of. That means the company gets $3000 in the pocket off that one auction. Add in the $50 final price and subtract the $500 initial cost, and they net $2550 in profit. The consumer pays $50 for the final price, probably $30 for shipping & handling, and however many bids they made times $0.60. In the end, the consumer gets a $500 ipad for probably under $100. It's a win-win situation! Of course, the company still has other things to account for. Advertising (which they also make money off of for having other sites advertise on their website), the warehouse (and maintenance), the costs of the goods, website development (which includes maintenance, improvement, design, etc.), licenses, patents, a customer service line...the list goes on. But the sheer amount of money they make off one sale, of which they do probably hundreds daily, makes this a very profitable business from the looks of it. I would love to hop in and compete by making a similar service but without requiring the purchaser to pay the final price and without fixed amounts of auction win's per 28 day period, but one, I don't have the money to invest, and two, it's a pretty difficult market to hop into. I doubt that Quibids has a monopoly on the penny auctions, it's just that the idea is so hard to believe that requires HUGE amounts of advertising (and difficult kinds of advertising at that) in the beginning, and it only runs smoothly with high traffic, something that is extremely difficult to generate from the beginning. But if I had the money to invest and could persevere until traffic picked up, there is much gold at the end of that rainbow [IMG]//content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif[/IMG] [/QUOTE]
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