How does QuiBids offer such low prices?
Every day QuiBids sells products at 60-90% below their retail price. We’re able to auction products cheaply for the same reason you’re able to purchase them...cheaply. It’s because of the unique auction model that’s built into the core of QuiBids’ business.
In a traditional auction, people bid, driving the price higher and higher, until only one person’s left, right?. Well, also in a traditional auction, the item often sells for a price that’s usually pretty close to its actual market value.
However, the QuiBids auction model ensures that almost every auction will end with the winner paying far below the retail value of the product. We’re able to accommodate this by charging $.50 to place a bid.
For example, QuiBids auctions a product that costs $259.00 when ordered from a traditional ecommerce site, but it recently sold in a QuiBids auction for only $4.35. Let’s break out the old calculator:
QuiBids purchases the product for $259.00. We turn around and set it on the auction block and bids begin to be placed by users who are competing for a chance to win. Eventually, the bidding ends at the price of $4.35. Because each bid raised the price by $0.01, there were a total of 435 bids placed during the course of the auction.
522 bids x $.50 bid = $261.00
Cost for QuiBids to purchase the product = $259.00
Cost for the auction winner to Purchase the product = $4.35
In this auction, QuiBids made just enough to cover the cost of the product and thus, the lucky auction winner claimed an incredible product for 98% off the retail price. Plus whatever they spent on bids. But what about the users who don’t win?
In order to make our auction model as fair as possible, QuiBids offers each participating user the chance to redeem what they spent bidding toward the “Buy Now” feature. ”Buy Now” applies the value of all the bids placed in that auction toward the cost of purchasing the product. The user pays the remainder of what it costs QuiBids to purchase the second item. No bid is ever wasted on QuiBids!