Penny Bid Online Auctions continue to SCAM and Rip OFF the US public at a record breaking velocity!
Have you seen the TV commercials for Beezid or Quibids? They advertise how you can buy Brand New items at pennies on the dollar. There are many more names for these sites and new names will continue to pop up in the future. Apparently there is no stopping these guys.
Just this past week I was shopping for really great buys on the Internet to resale at my new online store at A1 Mobile Computer when I ran into the SCAM at “Quibids,” and lost the minimum you can lose, $60.00. I have since seen the TV commercials of Quibids and Beezid all over my TV screen.
Here is how the scam works: You see items being sold for pennies on the dollar. Examples include items such as a $1,000.00 Samsung TV auctioning for $ 39.00. They may claim the items are overstock or a damaged box. You may actually see the items “sold” right before your eyes. However, for you to bid on any item you must sign in (open an account) and pay a minimum fee like $60.00 or so to start bidding. You actually buy your bids often for 50 cent each. Sounds reasonable? You can only bid 1 penny but it cost 50 times that to make the bid. That’s the scam. Are you smart enough to see it?
If several people bid up to $39.00 on the $1,000.00 TV and it cost 50 cent for each penny bid and you can only bid 1 penny, it is going to take 39 times 100 or 3900 Fifty cent (cost of each bid) bids to buy it as a group of buyers. Wait a minute; 3900 times fifty cent is $1,950.00. Do you mean they just sold a 1000 dollar TV for $1,950.00? Yes that is correct, well actually $1950 plus $39.00, but they said they sold it for $39.00. But wait that’s not all, there is more if you act fast.They may show you similar items that sell for even less, and after all you may not really care about the other bidders.
What if you buy into the idea you will only bid at the end? You’re still in serious trouble. They have computers bidding when the bids are too low. Example, two TV’s are being sold at the same time. One has a slightly higher bidding amount, say $10.00 and the other one is only $3.00. You save your 50 cent bids of one penny each for the larger bid of $ 10.00 and as the bidding goes up the $3.00 TV bid sells for $3.01 but the TV your bidding on goes t0 $39.99. Well their computers just bought the $3.00 TV so it would not under sell.
Some of these sites guarantee that you will not pay more than retail including the cost of the bids. That means that you will not pay more than $1,000.00. You would automatically WIN once you big 1000 pennies. Against at least one other bidder, the TV sell price would actually be $20.00. Taking into account their computers bid bots are going run it up to $20.00 against at least one real committed buys ($3.00 against no none real buyer) the worst thing thy can do is get retail from one buyer. If there is one other buyer, they make a Huge Profit at a $20.00 sale on the $1,000.00 TV.
Quibids even has a copy of a News Cast promoting their site as a reputable News Story. It’s FAKE. Here is more honest report at YouTube:
If you still have trouble seeing the scam I have a simple way to make it easier to reveal. The brain has trouble understanding a rip off that has to do with penny auctions and a 50 cent bid cost. Imagine that you get to bid a whole dollar each bid, but that each bid cost 50 dollars to bid. Think about that for a while, it’s the same trick! The bottom line is Real Auctions allow you to bid any amount, and it NEVER cost to bid!
I expect the Names of these sites will change in the future but the scam will be the same.
A1 Mobile Computer
TECH JOKE OF THE WEEK: Have you heard of the new XP Virus? It requires 12 years of patches and downloads to fix it, then you get a message that your support has ended, and a new virus pops up called windows 8!