How do these penny auction sites work?
They sell bid packs. For US customers, you can buy a 100 bid pack for $65 USD. With the bid pack, you get to bid 100 times within their site. So, let's say an ipad is selling for $80 currently. The bids are placed in increments of 2 cents, so the next bid would have to be $80.02, then $80.04 and so on. By the time the product actually sells, the site could make about thousand or two thousand bucks on a single ipad, whereas the winner pays something to the tune of $90-$100 or something like that. Pretty sick. In actuality, the buyer could bid on the product 200+ times before winning, which would make the item actually cost $130 + $90 = $220. My guess it that in the end it'll actually cost more than the product itself to bid on the item.
BidRivals.com is the one site that I've been looking at. I down know how long they've been active, but they seem pretty legit to me. You can even get 10 free bids by using the coupon code: 10FREEBIDS. I think they give you 1 free bid upon registration, then if you purchase a bid pack, they'll tack on 10 total free bids on there. Here's a banner from their site:
Look at all of this COOL STUFF that you can "buy"! Ipods, ipads, PS3s, iphones, xbox 360s, etc. They advertise the products as buying them for nubs. I don't know, there's gotta be some sort of method to the madness, so that you can get one of these items for cheap.