Swoopo Makes Some Changes, Lowers Bid Fee
By Ed Oswald | Monday, December 1, 2008 at 1:15 pm
As you saw in Harry’s earlier post, our Swoopo coverage still tops the charts as some of Technologizer’s most frequented articles. This has obviously put us on the radar of the folks at the auction site, so they have been keeping us informed of the goings on with the company. This latest round of changes aren’t all that surprising: many of them we already new about from our interview with US business chief Chris Bauman in October.
Beginner auctions are now live on the site, which Bauman claims will help first-time and new users learn the ropes of what is obviously a new method of online auctions. It will also prevent experienced users from taking advantage of the inexperienced ones as they are barred from bidding.
Many across our pages have also complained about the bidding fee of Swoopo’s auctions, which cost $1 per bid placed. Swoopo has lowered the this to 75 cents, which it claims has increased bidding on items.
While for many, the per-bid charge is a turnoff, at least they look to be realizing that a $1 per bid is a little steep. I’m not sure how much this will do since you’re still paying for those bids even when you lose — my biggest problem with the site — but I guess this is a step in the right direction.
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Swoopo Lowers cost of bids | How to win swoopo auctions Says:
December 3rd, 2008 at 1:11 am[…] just read an article over at the blog the Technologiser about Swoopo Price Changes This looks to me to be (pardon the pun)a bid by Swoopo to encourage new users to start playing the […]
December 5th, 2008 at 4:41 am
Thanks for the info…only just read the article that you made on Swoopo, I only knew them when they were Telebid Ticketola. Regards
December 10th, 2008 at 9:52 pm
I was bidding on an item for hours.During the end of the auction the site went down for maintence!What a scam. After spending money to bid and sitting watching an item for hours they take my money and stop me from being able to bid for two hours causing me to loose the auction.
January 25th, 2009 at 7:53 am
I paid $67.50 for a 40″ Samsung LCD HDTV it arrived less than a week later and is running beautiflly. Yes,i did lose 2 auctions prior,but my overall expenses don’t come close to half the retail price of this tv. I call that a hell of a deal.
February 19th, 2009 at 1:28 pm
I had entered my thoughts earlier about an auction in Australia AND one here in the US having not only the supposed same winner BUT even the bid histories were identical ! ! ! Come on guys do you think we are all stupid ? I see these changes a way to entice more to turn over their hard earned money to Swoopo for nothing ! Problem is that it is hard to prove fraud because swoopo can claim that its buyers privacy MUST be upheld by laws here in the us anyhow? so they will not even attempt to prove that real people do win big dollar items for up to 98% off retail ! Maybe those who win ( if they exist) want us to think it is a fraud also so they can compete against fewer buyers but I am not willing to take the risk in these hard times I do find it interesting that NO ONE is willing to prove they bought and were shipped a real big screen tv or big dollar item that they supposedly won for 15.00 dollars for a supposed 2,000 00 dollar item, not even swoopo has attempted to prove they do sell such items to the public and not just bid on items themselves? ? ? ? ? ? I have said it before and will again , If anyone is willing to send me a clear scann of a shiping label ( used one please! ) and reciept for a big dollar iten bought at less that 50% retail cost of the item AND a pic of that item in their home ( scan is fine) I will retract my post here in writting …
February 19th, 2009 at 1:31 pm
oops I am the Michael above and I forgot to post my email although I do not expect anyone to prove they bought anything at all … LOL ! bigmike825@aol.com Michael
February 19th, 2009 at 1:49 pm
Hey Ken < I am not saying you are not a real person and that you work for Swoopo as yet and you can prove it to me by sending me an email ( which is posted on my comments) I just find it VERY interesting that your name is Ken Masters just like the super poupular (as in everyone knows this name ) , video game character???? Is this possible?
February 19th, 2009 at 1:51 pm
Oh yeah Ken the email should be from a PAID email account please as I myself could send myself an email from a free site AND have done so to fool people ! ! ! LOL > Thanks Mike…
March 18th, 2009 at 1:02 pm
Hello all,
Beginning auctions are a FANTASTIC way for beginners to get started with pay-per-bid systems! Personally, I like http://www.pricedrip.com because the price goes DOWN for every bid instead of up!
But keep covering awesomeness!
April 6th, 2009 at 3:00 pm
The purpose of my comment is to provide a deeper awareness for those who may not fully understand what Swoopo is offering. If this post provides you with a deeper understanding of the risk you will be taking (or have taken), I’ve accomplished my purpose. Here is a broader way to view Swoopo (In my own opinion of course.)
Swoopo has created it’s own market and has created the rules in order to influence that market so it can make money. Basically, it’s goal is to SUPPLY enough auctions to match the pace of DEMAND in order to convince it’s prospects (you and I) that the reward is greater than the risk. Swoopo APPEALS TO THE GAMBLER AND ALSO TO THE UNSUSPECTING. It is to the unsuspecting that I write this post.
Swoopo’s business model involves INFLUENCING both sides of the market – controlling the supply and inflating the demand side. Ever notice that the number of auctions generally remain the same in each category? The supply is very consistent. Ever wonder why Swoopo doesn’t just use a dollar for dollar bid system? or why they make the rule that the clock will reset with simultaneous bids? Why are there so many penny auctions? Why are most all auctions “International” and not just the US? These are their rules so they can nearly guarantee their making a profit. Let me explain.
In the Swoopo “economy”, the price of the product doesn’t really determine when the product sells. All the low price does is entice unsuspecting bidders to play the game. It is a tool to PROLONG demand for that auction. The product actually sells when the demand for an auction lets up enough so the clock runs out. In other words, the risk one takes in the Swoopo economy is that the demand will never let up enough for you to win before you run out of money (and/or the nerve) to keep bidding. To help me explain this concept, let me take this concept to each extreme.
At one extreme, suppose Swoopo floods it’s site with 1,000 identical computers and there is just one bidder that is interested (or who knows about it). That bidder would walk away with 1,000 computers costing $10. Swoopo wouldn’t survive. This is obvious. What may not be so obvious is the other extreme (and what most people may not understand).
Taking it to the other extreme, if Swoopo only allowed one computer at auction, and there is a CONSTANT demand for that computer, the auction would NEVER END until the price reached the retail price!!! At this point, new demand would cease and the winning bid would come down to those who are heavily committed to the auction because of the money they have vested in it. After a history of these kinds of transactions, it would be obvious, even to a monkey, that there is no benefit to playing Swoopo. You could just go buy the computer from a reputable retailer with less head ache and risk. Swoopo wouldn’t survive in this type of extreme market either.
Let’s now look at Swoopo’s “economy” based on these two extremes. Swoopo must stay in the middle of these two extremes in order for it to entice customers AND make a profit! They have created their own system that is heavily influence through it’s playing rules and in the SUPPLY of auctions. The rules they have made are to maximize GENERAL demand – to slow the auction down so wave after wave of customers run across the auction and feed a perpetual bidding war. These bidding wars heat up and cool off – they ebb and flow racking up several thousands of bids. On the supply side, (if their business is honest) Swoopo will allow just enough product into the market so there are winners.
Swoopo’s rules slow down the auction process to keep demand flowing and people bidding. One rule is the .01 cent and .15 price increments. These small increments are merely a confusion to unsuspecting people to think it is a good deal so they will play that auction. It takes a long, long, long, time to move the price to it’s retail price a penny at a time. Resetting the bid clock also prolongs the bidding war and allows wave after wave of new demand to prop up these bidding wars. International auctions are yet another way to even out the demand.
In Swoopo’s economy, Swoopo controls the entire supply side. This is very dangerous because it gives them the ability to manipulate auctions at will – no checks, no balances. I’m not saying they do rig their auctions, I’m just saying that there is no one to notice should they choose to. Swoopo places all of the auctions! They give account to no one but themselves.
Take notice that they average about 200 auctions at a time. Also, compare the 200 auctions to the 5 countries bidding on them! Do these odds really make sense? My point is that this not only a gamble, but a big one at that. The odds of winning a legitimate auction, as Swoopo has structured it, are very, very slim. Watch any auction that is in it’s last seconds. Watch how many people are bidding in those last moments. Follow the bidding war for a short while. How many new names do you see join the bidding process? How many times does it ebb and flow when Bid Butlers but heads? Most importantly, notice how the auctions are ending. Do the auctions end because the demand dries up (I haven’t seen one yet) or are you watching auctions with ten active bidders, half new to the scene, which abruptly ends? Remember, there are only three ways to win: No one is bidding, lag prevents bids from registering, or foul play on Swoopo’s part. All I am saying is just watch several for yourself and apply your logic after you see how most all of these auctions end.
I hope my thoughts have helped you see that Swoopo is a gamble. If you are a gambler and accept this risk…go for it. If your stomach churns then forget Swoopo exists and move on.
July 7th, 2009 at 5:46 pm
yes, no matter what it is still a scam! i think it will fall soon by govt regulation and the bids all get retracted without compensation
August 3rd, 2009 at 11:52 am
Guys, on this kind of websites it is a good possibility to buy something very cheap. But mostly one bid costs like $0.50, $0.60 and sometimes even $1 per click.
Check out the new website where 1 bid cost as low as 10 cents per click: http://www.for10cents.com
August 17th, 2009 at 10:21 am
Has anyone bought anything from http://www.gozila.co.uk penny auction?
Whats the deal, is it like ebay?
Thanks
September 9th, 2009 at 9:58 pm
http://muulu.com There ALOT cheaper, 50 cents per bid first time, 30 cents the second. Also they have TV’s, Laptops, Apple products, and other cheap items.
September 22nd, 2009 at 1:24 pm
this is still stupid. you PAY to bid? how ridiculous. you still pay when you lose so what’s the difference of 25 cents? your still losing a lot of money if you lose that bid and let’s face it 9/10 times you’ll lose to someone and that person is usually a robot. this site is a ripoff. I’ll try it and if I don’t win I’ll know this site ain’t legit. Think about it. The bid should’t increase time that much that much if you usually see bids and I’ve seen them. They don’t increase time but even if they do they don’t increase like up to another 2 hours that’s plain robbery. your almost done in 20 seconds fine add another 5 seconds but up to another 2 hours? hell that’s like the damn bid started all over again and for what?
September 25th, 2009 at 1:22 am
This Muulu site is just some kid scamming don’t be victimized, here’s proof:
New Penny Auction Site Muulu Is a SCAM
October 17th, 2009 at 10:41 pm
I was bidding on a pair of diamond studded earrings. There were about 5 seconds left and I tried to bid. It wouldn’t take my bid and according to Swoopo, they were having technical difficulties. Do you think they would have offered me the earrings at the cost had my bid been accepted? No, they reimbursed my bids and didn’t even add any extra for my inconvenience. I’m having second thoughts on Swoopo.
December 13th, 2009 at 1:29 pm
Many Penny Auctions sites out there are failing. Whether it’s poor planning, lack of tech skills to run an efficient site, or all the above, the rate in which old ones die and new ones start is staggering. It is a good idea to research these sites and see which ones have been up the longest. A good way to find out if the penny auctions are good are to contact the customer service and see how fast you get a reply. If it’s within a few hours you’re probably on your way to finding a great penny auction site!
Regards,
Cathy Saar
Penny Auction