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How stuff works: Piso Bid anyone?

First of all, I am in no way, related to the owners of Pisobid.com at present (it's a small world after all) and I'm writing this blog because I like to analyze and figure out how things work :)

I was reading through my Ymail when I saw this ad for Pisobid.com. The name caught my attention and all that was running through my mind was the thrill of bidding - Ebay alert hihihi.

When the website opened, I saw that there were a lot of gadgets up for grabs, among the lot was an iPhone 4 which I really wanted but didn't have the heart to spend Php 40,000 for a cellphone. Upon closer inspection, they are giving away ipads, LV bags and GCs. Hmmmmm.... let's give it a try!

I never did like reading instructions and policy agreements so I just purchased a 35 bids for Php 500 so that I can start bidding. It's actually pretty easy to bid, all it takes is a click of a button, money is gone. HAHAHA
In the pisobid, you actually use real money to buy bid, in this case, 1 bid = Php 14, so that you are entitled to bid. Some high ticket items require 2 bids so cost per click is Php 28 (basing it from 35 bids = Php500).

The way piso bid works is quite clever. You see, for high ticket items, you need 2 bids (28 pesos per bid) which corresponds to a 2 centavos increment per bid.When the time ends, the 10 second clock begins and it refreshes whenever someone else places a bid. Bidding never stops unless someone runs out of bids and the last bidder after the 10second count, bags the prize. Sounds easy enough? Yes it is, but the clever part is that while it is true that you literally save more than 99%, it is a great way for them to get ROI by the truckload.


For example:
The recently concluded LV monogram Speedy 30 bidding - the winner won the bag for just Php 137.66! Good for the winner!
Actual price of the bag is Php 39,100 Bidding ended at 3AM, oh my! such an aspirational product!

So you must ask, how do they earn if they practically give away the stuff? EASY.
Php 137.66 is actually equivalent to 6,883 bids from people

COMPUTATION:
HOW TO COMPUTE FOR NUMBER OF BIDS
Php 137.66 (actual price) divided by .02 (2 centavos per bid) = 6,883 bids
* limited to to 2 centavo increment per bid, you cannot dictate a price



EARNINGS
6,883 bids multiplied by Php 28 (cost based on 35 bid pack for Php 500) = Php 192,724


ROI
Php 192,724 (cost of all the bids) less Php 39,100 (cost of the bag) = Php 153,624 (this could be less given overhead cost, manpower, utilities etc.)

So they earned Php 153,624 in just one bidding game! Clever, right? :)


Needless to say, my experiment is over, I just threw away Php 500 in the air, I still have bids left but I'm charging the cost to experience/additional knowledge. But if this works for you and you have a gadget in mind, by all means go for it just make sure to win so you can get savings instead of money down the drain.

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I'm such a geek. I computed for some of the earnings and for the Apple iPhone 4s 16GB bidding, they actually raised a whopping Php 606,676 or 21,667 bids! Eek!

Comments

  1. Nice post you got there. But to be fair naman po sa mga readers. You should also compute the Pisobid losses po. Parang one way lang po kasi ang post niyo and it gives the wrong impression sa mga tao na gustong sumali sa PisoBid.

    Here, I made a quick research sa mga blogs na nabasa ko ang I stumbled on this blog:

    http://jamesmickeyjames.blogspot.com/2011/07/why-pisobid-dont-have-bots.html

    Medyo magkaiba nga ang computations but if you try to compute it your way, same pa rin. LUGI ANG PISOBID.

    Now let me check sa mga auctions this week meron ba silang losses. I think meron eh. I always take a look in their website, but sorry I am not a bidder, just an avid fan of PisoBid and wala naman akong makukuha kung ipagtanggol ko sila. I just want the audience to have a clear and fair judgement sa Pisobid.


    Eto ang ilan sa mga items na ang lalaki ng losses ng PisoBid. You can check it naman po.

    http://pisobid.com/Auctions/Blackberry-Bold-9900/3947
    http://pisobid.com/Auctions/iPAD2-16GB-WiFi-BLACK/3923
    http://pisobid.com/Auctions/Yamaha-Vega-Motorcycle-1500-Bids/3785
    http://pisobid.com/Auctions/Nintendo-3DS/3878
    http://pisobid.com/Auctions/Kindle-Fire-WIFI/3755
    http://pisobid.com/Auctions/Asus-EEE-Pad-Transformer/3704
    http://pisobid.com/Auctions/13-inch-MacBook-Air-128GB/3744

    I think hindi lang tayo ang nagririsk ng money for this, Pisobid also. Hindi naman sila sure kung marami ang magbibid for the item. They also depend on luck and of course good advertsing as well the performance of the site.

    As for me, never ako nagbid because wala naman akong pera but still I know you will surely depend on pure luck if you just invest 500 pesos for an item worth thousands of pesos. For sure marami ang may gusto niyan ang if mas gusto mo ang item you should invest on it.

    Information lang po ito that might add sa article na ginawa ng blogger. If you want you can check it your own at http://pisobid.com/Winners.aspx

    GOODLUCK!

    ReplyDelete

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