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Penny auction websites are a particular kind of online auction website where buyers can place bids in small increments of 1p or 1c at a time. But with their buyers placing such small incremental bids at a time, the closing sale price on each penny auction is often far, far lower than the standard retail price of the item or items in the lot. Therefore, there has to be some compromise. Penny auction sites simply cannot afford to continue to sell these products at such low values. For this reason, they have cleverly established a brand new revenue stream, to help them recoup some of the money which they loose by offering products for sale so cheaply. One of these revenue streams, and in fact, a factor that is often a penny auction websites most fruitful revenue earner, comes as part of the larger pay per bid system. This innovative new form of bidding provides great cash injection for the online auction websites, without the need to raise the reserves on the auction lots. This is a win-win situation, as it also benefits the customers who will continue to receive high value goods at the lowest possible prices. Prices which, we should mention, are often a fraction of the prices you would pay for the same products if purchased straight off the shelf. In recent times however, some penny auction sites have become even more profit hungry. And in their mission to squeeze ever higher profits out of their potential buyers, some pay per bid auction websites have begun to look at ways to artificially inflate the bids on some or all of their products. By using specialist software known as penny auction bots, these online auction websites can pose as rival bidders, and bid against you in their own auctions. By bidding against you in this way, the bots give the illusion that they are a genuine bidder like you, and you will naturally go on and place another bid to outbid them again. This process of bidding and re-bidding will continue until the online auction house decides they have inflated your bid to a sufficient level. And of course, you come away non the wiser, having thought that the bot which is bidding against you was actually a real person. All the while whilst this process is going on, the online auction website is charging you for each bid you place. This means that by the end f the process you have placed many more bids than you would otherwise have done, and the online auction house has been able to charge you much higher bidding fees than they would have done without the use of the bidding bot. So, a word of caution to anyone who is planning on using one of the hundreds of penny auction websites that can be found across the internet - be aware. There are scams out there which will look to bleed as much money out of you as possible, but if you shop online in a savvy way you will know how to recognise and avoid the dreaded bots. BidGrid are an innovative online penny auction site where it's the lowest unique bid that wins. See how it works.
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