Swoopo is possibly the silliest auction site ever.
- You pay ~$1 for every bid you place
- Your bid raises the purchase price by a set amount (either $.15 or $.01 depending on the type of auction)
So, to take this auction for example:
Canon Rebel XSi
Final Purchase Price: $23.96
Winner placed 249 bids.
This auction was a ‘penny auction’ which means that each bid increases final price by $.01. The starting price was one penny.
So let’s do some math:
- The winner placed $249 worth of bids, plus pays the final price. So the winner came out with a great deal at $272.96 for a nine hundred dollar camera.
- All the people who placed the other 2,146 bids lost out. As a group they paid more than $2k for the privilege of playing this fancy slot machine.
- $23.95 / .01 (price increase increment) means that Swoopo received $2,395 for all the bids that were placed. Swoopo makes out like a bandid, 266% of the MSRP.
Now take THIS auction for instance:
Final price: $213
Winner placed 18 pids
This auction started at $.15 and each bid increased the price by another $.15.
- the winner gets merely an okay deal paying $215.70 including their own bid fees for a $250 piece of merchandise.
- $212.85 / .15 = $1419 paid to swoopo in bid fees, an astounding 567% of the MSRP!!!!!
My question is: why not just go to vegas to lose all your money with the off-chance of hitting it big? At least there you get pretty girls and a mild sense of luxury.