On a forum someone pointed out a new firearm auction site called Bidgunner. I’ve won a few auctions on GunBroker and posted my thoughts back in March. Bidgunner adds a new wrinkle to the mix. First off it is a penny auction so the amount increases by a penny every time someone bids. Unlike normal auctions where you bid a price, you are bidding another penny. The second quirk is you have to purchase the bids for $0.65 or more each. The third quirk is the auction does not end until no more bids are placed for 10 seconds. So let’s say you wait and bid at the very last possible second then 10 more seconds are added and another person can up your bid by a penny. Now if you happen to not win an auction you bid on you money spent on bids will be applied to the FULL RETAIL price of the firearm.
Let’s run a scenario. There is an item worth $600 up for auction. You bid 100 times on that item in an effort to win it, but ultimately do not. You have spent at least $65 to bid on the item and the auction company has made $39,000 based on $0.65 per bid and 60,000 total bids. As I type this there is a $30 headlamp for auction on the site. It has $1.22 in bids meaning it has had 122 bids at a min of $0.65 each. So far Buds Gun Shop (the owner of Bidgunner) has made $79.30 in total or almost $50 in profit and it still has another day to sell. Another auction is worth $250 and has 360 bids so currently they have made $234 or a $16 loss, but keep in mind the prices are full retail so since they buy at wholesale they have already won.
One more example. There is a Ruger LCP with a value of $373 and an auction price of $14.38. That means it has received 1438 bids and at $0.65 they have raked in $934.70 on a gun that has a wholesale cost of about $275. Now some auctions do increase by more than a penny, but a quick check on our old friend the Ruger LCP indicates it is truly a penny auction. Not a bad gig if you figure you can make more than MSRP on the firearm and then if someone has spent a considerable amount on the firearm bids you can get them to apply it to full MSRP.
The full site rollout is tomorrow, but why not register today and start losing money? With the exception of bids I might get for free, I’m gonna take a pass on this one folks.