Online Auctions

[KenX]

How do those online auctions work where people buy, for example, a $1200.00 TV for $100.00. See the ads and read a little bit about them but really just don't get it.

 

[xseler]

I may be mistaken, but I think that you pay what you bid whether you 'win' the auction or not. Doesn't take too many $2 to $3 'bids' to let the auction house make some major dinero.

 

[TomT52]

I checked into those auctions and how they work is every time you bid it cost you $.99 and they up the price $.01, so when enough people bid to raise the price $1.00 the auction company has made $99.00. In the end something sells for $500.00 they have already made $49499.01 off losing bids and $500.99 from the "big winner" for a total of $ 50000.00