I warned you before about these penny bidding auction sites. But I have an interesting angle for you today.
From DealDash’s terms of service:
By registering and using DealDash you understand that you are likely to spend more money than you may receive in merchandise value. Most customers using the site gain less in merchandise value measured in monetary value compared to the amount of money spent bidding to win auctions. Do not buy bids or spend money on the site if you cannot afford to lose the money.
Absorb that a moment. You are likely to spend more money than you get in merchandise value. Most customers spend more than they should to (try to) get stuff. People who lose auctions here don’t get back what they paid for bidding. Yes, here bids cost money whether you win the item or not.
It goes on…
DealDash is convinced that the entertainment value of participating in its auctions is valued and that paying a premium price for this entertainment value compared to shopping at the lowest priced retailer is fair.
Let me translate that for you. DealDash believes you will have so much fun gambling on possibly winning the item that you won’t mind playing a higher price. Like your time at a slot machine, you’re paying for entertainment whether or not you win.
I wonder if people who walk away from a slot machine having lost money notice they feel entertained.
In summary, if you want to shop at the “lowest priced retailer,” it’s not DealDash, where they are selling you entertainment more than they’re selling you goods, certainly not discounted goods.
Remember that if an iPad sells for $13.66 on DealDash, that means there were 1366 penny-incremented bids that DealDash collected 60 cents each on. DealDash collected nearly $820 for that item. If 1 out of every 5 bids were yours, then you spent about $164. Winning an iPad for $164 sounds good. Being one if four theoretical people that spent $164 and got no iPad probably sucked.
Don’t fall for the commercials telling you how fair and honest this is. The more anybody tells you something is fair and honest, the more you should assume it’s not.