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How can penny auctions stay in business when expensive items end for less than 90% retail prices?

April 26, 2017auctions Business expensive items penny prices retail stay

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How can penny auctions stay in business when expensive items end for less than 90% retail prices?

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Penny auction sites purchase from wholesalers and buy items at a large discount. The ending price of a penny auction may be 90% below retail, however it is the cost per bid x number of bids used to determine the total amount of money the auction made.