Our customers often ask us: "Can a penny auction business be profitable?"
From our experience we can give an answer: Yes, it can be.
We have seen the following cases.
The iPad went for $202.15. As each bid increments the price by $0.01 it means that Bouncybids got 20,215 bids and earned $12,129 (one bid costs $0.60):
As the retail price of this iPad is about $1,200 the profit is 12,129 – 1,200 = $10,929 USD or 910% !
The Amazon Electronic gift card of $250 value. It was won for $23.32, which means that 2,332 bids were made. 2,332 bids * $0.60 = $1,399 income. $1,399 – $250 = $1,149 profit or 460% !
So, these are good results. And it is a true proof, that when running penny auction business goes step by step and is accompanied by well-organised marketing strategy, it can be profitable and succesful.
Good luck with your penny auction business!