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Wednesday, December 29, 2010

How Does Quibids Work?

Those new to penny auctions and Quibids might wonder how Quibids actually makes money when they sell items at 95% off retail price. To begin, on Quibids customers must purchase their bids. Each bid costs just $0.60. Bids are available in Bid Packs of 45, 75, 300, 600 and 800 bids. These bids are pre-paid and placed in your Bids Account. Each time you place a bid, your Bids Account is deducted one bid. Once a bid is placed the auction price will go up in increments of 1,2,5,10,15, or 20 cents. Anywhere between 10-20 seconds is added to the timer every time someone bids. This gives enough time for someone else to make the decision to bid if they're interested. This is similar to the “Going once...Going twice...SOLD!” approach of traditional auctions.

If you are the top bidder when the timer reaches zero, you win! You will then pay the ending auction price as well as the cost of shipping. If you do not win, you lose your bids that have been placed; however, Quibids offers a Buy it Now feature on all auctions. When you use the “Buy it Now” feature, Quibids subtracts the cash value of the bids you’ve placed (excluding voucher bids) from the value price of the item, and you only have to pay the difference.

Let's say you spend 30 bids trying to win a $30 valued product, but you don't win. Your 30 bids are worth $18 (30 x $0.60), so if you choose to use the "Buy It Now', you will pay $12 plus shipping for the product. *Please note that this offer applies to real bids only, and that voucher bids to do not apply to the Buy It Now option.

The "Buy It Now" feature limits the risk in participating in our auctions as we offer the Buy It Now feature for the majority of our auctions.

Quibids makes a good profit on each item even though the item is sold at a deep discount. For example, if a $50 gift card was sold for only $3.50 on Quibids,  Quibids will receive from the winner $3.50 + shipping, plus from all bidders (350 bids x $0.60 = $210). Thus, Quibids will make $210 + $3.50 + $3.00 (shipping) - $50 (price of gift card) = $166.50. However, keep in mind there are some items that they actually do loose money on. And as with any business they have labor, rent, training, maintenance and other expenses.

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