Penny & Reverse Auction The New Rage On The Internet ?
behind Telebid has pumped 3 million Euros into the startup.
To understand how telebid can afford to sell products below their retail price and still make huge profit will become clear when I tell you that visitors have to pay for each bid they place. 50p to be quite exact. So take the example from above with 500 people having bid on a brand new car. If you care to calculate Telebid will already have earned 250 GBP by the time the price of the car has reached 61 GBP. Now, considering how many hundreds of people visit the telebid page at any given moment, how likely do you think it might be that during the bidding of those 500 people (approx. 10 minutes) another 500 will have decided that 61 GBP is a pretty good bargain?
In the end the car might sell at a bargain price of 5,001 GBP but telebid will cash in the 5001 plus 25,000 GBP through bids.
