strategy-start-smallThe biggest appeal to penny auctions is the fact that you can possible win extremely expensive items for pennies on the dollar! This, unfortunately, is also the biggest mistake. While the high-end products have the greatest curb-appeal, they also come with the most risk and competition. Oh, and they also come with the fewest wins. Here’s why.

High-end products bring heavy competition

We’ve seen single penny auctions go on for days, literally. 9 times out of 10, it’s the high-end products like iPads, laptops, TVs and more that bring the most competition and as a result, cause the auctions to last for extremely long periods of time. After all, everyone wants to go home with the big prize. Bidding on high-end products should be your last priority as a new bidder!

Small ticket items are the way to go

For new beginners, we always recommend starting by bidding on smaller-ticket items such as gift cards, inexpensive electronics, etc. While these items have less curb-appeal, your odds of getting a great deal are much, much higher. While everyone else is bidding on the iPad, you can enjoy much less competition and more wins on smaller-ticket items. Sure, it doesn’t seem as exciting but this is an absolutely must!

Gift Cards and other small ticket items

Fact: 4 $25 gift cards is worth the same as 1 $100 gift card (how’s that for good math!).

Why bid on a $100 gift card that attracts hundreds of other bidders when the $25 gift cards are much less competitive? Don’t forget that gift cards are almost always worth their face value so sometimes it pays to bid on several small cards instead one large card that brings boatloads of bidders.

Whether a new bidder or a grooming power-bidder, the truth is that the most effective way to save money and come out on-top of penny actions is to focus on the small items. You can completely avoid the rush of other new bidders by going after the items which they will most likely be too tempted to avoid.