Today is the second time i took out the money from my Financial Freedom Fund and count! I have saved $50 over the pass 30 days and Ill be putting the money into my bank account tomorrow. =)
I did a very bad decision today. And the consequence, a loss of $42!
I was surfing facebook today when i saw one of the facebook advertisement from the corner. It was a fan page for a group. It have a online business website and it seems to me that the website is created by a Singaporean since the transaction currency is in SGD.
Anyway, the company is call WinMeAuction. As the name suggest, it is a Auctioning website. Something special about this website is that it advertised that their Iphone 3GS are selling at the price of $14.50!
That immediately caught my eye. The company even emphasize about how everyone of their item are selling at a saving rate of 90% and above!
I was curios and went in to have a look. The company was fair in the sense that it have explained on how they their business model. That the made money through the sales of "bids".
Bids are required in auctions and the company's profits are all coming from the sales of "Bids"! Furthermore, The Auctions rules are a little different, Every bid increases the Total price of 1 cent! YES IT"S 1 CENT!
Plus, a further time slot of 10 seconds. Initially, I didn't really know the importance about the added time till i purchased the bids.
I can tell you, the bids are the ones that is racking in all the money! 1 bid cost like SGD$1.00!
Regardless, I bought the cheapest package at $42 with a total of 38 bids.
Before this, I haven't really participate in any auction activity. They have this Countdown timer for example, A Iphone 3GS. At the Auction was counting down for the last 10 seconds, I suddenly saw someone bids in. And that "extends" the auction time. And this situation continues for as long as 5 hours! Until everybody used up all the bids they had purchased, AND, if they still do not give up, some will continue to buy "bids" and carry on bidding!
I know it sounds confusing here but what i'm trying to say is that this business model is BRILLIANT! lol!
Brilliant in the case of the business owner but not the bidders. I have to relate this business as one of the Casino operators!
Taking the Iphone which was sold at $14.50 for example, we will see that the company have earned $1450 given an estimated price per bid was $1.
That itself, have already covered the cost of the Iphone. Although it could turn out a Win-Win situation for the eventual buyer ( because the eventual winner could be someone who may win using as low as 1 bid and pay $14.50), The bidding involves alot of people pushing the price up.
And i happen to be one of the unlucky guys to do that. =(
Lesson learn today is not to act emotionally! Unless you have the experience of bidding in an Auction, Never be stuck into this vicious cycle.
Had i purchases a even bigger "starting package" and my bidding strategy isn't right, then i could still lose all my money and win nothing!
Afterall, Auction is something which the last bidder-win-all! And in this case, the final price is something which everybody is willing to pay, Can you imagine paying $15 for a Iphone?!
So, that's something which i wanted to share today. I'm not saying that Auction is not good because auction winners do really win a big gain! But, I would like to say that in order to win, EVERYBODY HAVE TO LOSE!
And here are my 5 success for today:
1 I deposited $1.80 into my Financial Freedom Account!
2. I learn a very valuable lesson of Auctioning at a price of $42 (something i think is reasonable)
3. I counted my savings over the past 30 days!
4. I did my Wealth Declaration today!
5. I pull out my blazer and try and i'm glad that it still fits! (Just in-case i want to wear it for Candise's wedding dinner tomorrow)
And with that, I'll end today's post with:
"YOU HAVE A MILLIONAIRE MIND!"
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