Many people love to buy things through penny auctions because of the supposed savings they are getting. What a lot of people don’t realize is that they are actually losing money. One way in which the penny auction sites like Quibids get people to spend more money is by charging more for smaller bid packages. If you want to buy a 30 bid package on some sites, you will pay as much as $0.90 per bid. One of the same sites that offers this package also sells 1,000 bids for $500—or $0.50 per bid. This is a huge difference.

But where the penny auction sites make the most money is when you bid for more bids. If you want to bid on a package of 30 bids, the site in question lists the retail price at $27—the $0.90 per bid price. But the amount you spend on bids should be much lower than the $0.90 per bid fee if you want to get your money’s worth. Still, it is very rare that this package sells for less than $20. So even though it looks like the winners are getting good deals here, they are actually losing money. When you buy bids, you want to pay as little as possible per bid. Don’t get fooled into bidding for more bids at cheaper than retail price if there are other bid packages available on the site that can get you an even lower price per bid. This is why buying a large bid package is usually better than winning bids.