Rockybid.com, a new online auction website, successfully launch last month but they are planning to lose money on every item until the end of the year. Some recently closed items sold for dirt cheap are a Tom Tom GPS, an iPod Touch and a Nintendo Wii. Biggest ticket item is the 2010 Honda Insight which should close in a week for a bargain
Rockybid.com, a new online auction website, has compiled statistics regarding company revenue, web traffic and user demographics for its first month in operation. Despite a successful launch, the "omega auction" site, as they refer to themselves, is not looking to post profits until Q4 of 2009. This structure creates highly inflated discount opportunities for users.
According to Rockybid, omega auctions differ from other auctions in that the final bidder in the countdown wins. An omega auction does not cater to the highest bidder the way a traditional auction does, rather it is designed to reward the bidder who remains when the time limit ends. The model on which these auctions are based allows each bidder to contribute to the overall price of the product, as the increases in bidding price are completely linked to the number of bids.
However, this model also requires a large pool of users to generate profits. As their site and membership grow, Rockybid has reconfigured their plan so that they can accept a significant deficit before they recoup their losses in Q4. They are hoping that the 90-95% savings offered on their site will draw users interested in purchasing items such as a Nintendo Wii for less than $4, as was recently sold. Other recent Rockybid sales include an iPod Touch for just over $1, a Tom Tom GPS for $0.35, a fifty-dollar gift card to Amazon.com for $0.10, a PC laptop for $1.93, and a Samsung flatscreen TV for $0.47.
The biggest-ticket item that Rockybid is auctioning off is the 2010 Honda Insight Honda Insight, the new Hybrid built by Honda to compete with Toyota's well known Prius. "Because of our low user base, the Honda Insight is likely to sell for more than 90% off!" says Scott Emerson, customer service representative for Rockybid. That auction is set to close on Sunday, May 17.
"In addition to the enormous savings on our top of the line items, we are constantly giving away perks to our users," added Emerson. Free bids are available for just signing up with Rockybid as well as for participating in their rewards system. Through the referral program, 5 free bid is awarded to each referring user w hen the new user purchases an initial bid package. Even if members don't win in an auction, they can still receive prizes for used bids.
However, this model also requires a large pool of users to generate profits. As their site and membership grow, Rockybid has reconfigured their plan so that they can accept a significant deficit before they recoup their losses in Q4. They are hoping that the 90-95% savings offered on their site will draw users interested in purchasing items such as a Nintendo Wii for less than $4, as was recently sold. Other recent Rockybid sales include an iPod Touch for just over $1, a Tom Tom GPS for $0.35, a fifty-dollar gift card to Amazon.com for $0.10, a PC laptop for $1.93, and a Samsung flatscreen TV for $0.47.
The biggest-ticket item that Rockybid is auctioning off is the 2010 Honda Insight Honda Insight, the new Hybrid built by Honda to compete with Toyota's well known Prius. "Because of our low user base, the Honda Insight is likely to sell for more than 90% off!" says Scott Emerson, customer service representative for Rockybid. That auction is set to close on Sunday, May 17.
"In addition to the enormous savings on our top of the line items, we are constantly giving away perks to our users," added Emerson. Free bids are available for just signing up with Rockybid as well as for participating in their rewards system. Through the referral program, 5 free bid is awarded to each referring user w hen the new user purchases an initial bid package. Even if members don't win in an auction, they can still receive prizes for used bids.
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