This is similar to other auction types with the exception that instead of the price rising $0.15 it rises a penny. This is an advanced auction type. Typically higher priced items are listed under the penny auction type. If timed well this can be extremely profitable, but they are also very competitive.
Consider the case of a $1,199 television penny auction I recently saw listed. The final price for the 42 inch Philips television was $24.07. For the guy who had to buy this in the end it was a total steal. Remember that this was a penny auction so all bidders combined spent $1,807 dollars on this auction. Not a bad deal for Swoopo. Even if you had the majority of the bids you may have come out ok, but you have to be willing to spend a lot and not screw up in the end.
Sometimes you can do well even if you have the majority of the bids. I’ve seen a 37 inch go for $7.05 when it retails for $1,299. Even if you had all of the bids you would have only spent $528.
The important thing to understand about penny auction is that it is very easy to get in at the end, but in order to win you may need to spend hundreds of dollars in bids and even after spending hundreds there is no guarantee you will win.
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