DealDash Math EXPOSED — they paid HOW much more FOR THE BIDS?
This article was written by a DealDash employee. All statements made are factually correct.
DealDash is one of those “Pay to Bid” websites where you don’t pay only for the auction price, but also for your bids.
Let’s take a look at how much some bidders actually paid for their deals, including the cost of bids and shipping.
Recently, a PlayStation 4 was sold for the final auction price of $9.53. What’s the math behind it?
The auction price of $9.53 means that 953 bids was placed in the auction by all the participating bidders, as every bid raises the price of the auction by $0.01.
DealDash generated a total revenue of 953 * Cost of Bids + the Final Auction Price. Bids are usually available for less than $0.20 each — at the time of writing on June 26th the price is $0.15 per bid — but let’s use $0.20 for the calculations. 953 bids * $0.20 per bid = $190.60 + the final price of $9.53 from the auction, total of $190.60 + $9.53 = $200.13 of revenue.
The winner paid the final auction price of $9.53 and used 31 bids (31*$0.20 = $6.20), so the total cost for the winner was $15.73, and the shipping was free like always on DealDash.
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How can these deals be possible and the company stay in business?
First off, DealDash works directly with brands and buys items in large bulks. Overstock clearance deals, seasonal inventory, brand promotions, and more.
When DealDash’s buyers hunt for bargain deals to be added to their warehouse, the bidders on the website can benefit from these deals, too. Read more about some of the large lots of items DealDash had in its stock in June 2018.
It’s true, sometimes the bidding lasts for several hours and the total revenue DealDash generates can be substantial. But judging by the history of ended auctions, it is not uncommon for auctions to end at low prices. A snapshot of ended deals from yesterday (June 24th 2018) includes:
Bolvaint Arduin Lambskin Motoring Jacket
Sold for $0.28 (Winner Placed 4 Bids) = Total Cost for Winner: $1.08
Total Revenue for DealDash: ($0.28 + 28*$0.20) $5.88
Kamikoto 7-Inch Santoku Chef’s Knife
Sold for $0.09 (Winner Placed 2 Bids) = Total Cost for Winner: $0.49
Total Revenue for DealDash: ($0.09 + 9*$0.20) $1.89
Bolvaint Vitus Men’s Watch, White
Sold for $0.25 (Winner Placed 4 Bids) = Total Cost for Winner: $1.05
Total Revenue for DealDash: ($0.25 + 25*$0.20) $5.25
Aava Elements Stainless Steel Saucepan with Lid
Sold for $0.39 (Winner Placed 6 Bids) = Total Cost for Winner: $1.59
Total Revenue for DealDash: ($0.39 + 39*$0.20) $8.19
Veho M8 Wireless Lifestyle Portable Speaker
Sold for $0.55 (Winner Placed 7 Bids) = Total Cost for Winner: $1.95
Total Revenue for DealDash: ($0.55 + 55*$0.20) $11.55
What happens if you bid and don’t win?
So what happens if you spend money on Bids and don’t win? Say you used 300 Bids (300 * $0.20 = $60) on the PlayStation 4 and didn’t win.
If you don’t win the auction, you can use the “Buy it Now & Get your Bids Back” option to buy the item you were bidding on for its “Buy it Now & Get your Bids Back” price and receive all your bids back instantly without an extra fee. In the case of the 1TB Slim PS4, the “Buy it Now & Get your Bids Back” price is $320.
By using the “Buy it Now & Get your Bids Back” option, you don’t have to lose your bids when you don’t win.
Do you have to pay for ALL of your Bids?
There are plenty of ways to earn Free Bids on DealDash. The “Time as Highest Bidder” meter rewards you with Free Bids for every second you’re the highest bid in an auction.
You can also win Free Bids from various contests, or by exchanging your won items to Bids, or by winning auctions for Bid Packages. Also look out for daily special deals for discounted Bid Packs and other special offers.
100 Free Bids when you join
You can now get 100 Free Bids using the coupon code OVERSTOCK.