wavee – a Wii console for $3.59? What is this thing?

7 May

That’s right folks.  Online real-time bidding auction site wavee sells electronics and software for ridiculously cheap prices.  The question is, how do they do this?

Nintendo Wii sold on wavee for $3.59

Wavee is a really cool concept.  Items are put up for auction by wavee with a 24 hour timer.  The price of the item starts at $0.00.  When a user bids on an item, the price increments by $0.01.  If at the end of the 24 hour timer, you are the last user to bid, you buy the item at the final price.  The catch is that each bid uses up credits, which you have to pay for.

In the example of the Nintendo Wii above, we see that the final price is $3.59.  That means the item was bidded on 358 times.  Each bid costs $0.75.  So with 358 bids times $0.75 per bid, people spent $268.50 bidding on the Wii, plus the final price of $3.59 puts the total at $271.09.  Seeing as how I can find a new Nintendo Wii on amazon for less than $200, this is obviously a good model.

Essentially wavee is getting a bunch of people to spend a little bit of money on bidding, which adds up to a lot.  One person gets a great deal, the other people lose a little bit of money.  It’s an interesting psychological and math game- which seems to be working.

I’ll keep a tab on this site as I’m looking to get a bigger monitor to plug my laptop in to!

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