DealDash has been in talks for a while, and the constant “more to it than meets the eye” concept is putting DealDash off the table a bit.
All these speculations and rumours leave a deep impact on people. That’s how human nature works.
But how much truth is there to it? Is DealDash a scam? We’ll be uncovering the fact whether DealDash scam is in fact a thing or not in this article.
What is DealDash?
Established in 2009, DealDash is a penny auction site but quite different in some ways. DealDash allows users to bid for a product and offers the product to users at the price that they have bid for the exact product if they are the final bidder for the product.
DealDash Scam
There are generally two reasons why people would think DealDash is a scam!
* People who have really bought the bid pack and bid on a couple of auctions, thinking they should’ve won something, ended up jumping to the conclusion that DealDash scam is a real thing.
* People who have never bid on DealDash before and, upon checking the site they find out things are being sold out for low prices and end up jumping to the conclusion that DealDash scam is a real thing.
Deep dive – how does DealDash work?
What is a Penny Auction?
A penny auction website permits users to bid on products that they want, much like any other auction website. These products can vary from household items to furniture to electric devices. Nevertheless, unlike other sites, the bids will increase by a penny at a time til the time runs out for the auction.
DealDash auctions are accessible for a broad variety of products such as machinery tools, toys, mobile devices, kitchenware, household items, bid packs, headphones, etc. DealDash is not failing to claim that the maximum number of winners get products at 60-99% off retail pricing, including free shipping as well. To understand this a little better, it means a $300 laptop could be purchased for less than $10.
In order to ensure that each and every person has a shot, DealDash also restricts users to one account per person, and more than two accounts per household is not allowed. DealDash also limits employees, their friends, relatives, and family from bidding.
Let’s assume that you visit the DealDash auction for a new laptop, the auction rate is $0.00 and there are only 10 seconds left on the auction, and before your luck runs out you want to place a bid. Your bid will only surge the price of the auction by just a single penny, setting the updated selling price: $0.01. Now, this will also readjust the timer of that particular auction back to 10 seconds. Last but not least, you must have to pay to place the bid. The price of bids on DealDash settles out to approximately $0.15 per bid. Summing this up, you’ll have to pay $0.15 to place your bid that surges the bid of the auction by a single cent.
Let’s broaden this thing out to make even more sense of the matter. You reach an auction for a laptop, and the selling price of that laptop is $60, and each bid surges the auction price by $0.01; this simply means that 6000 bids were placed on that laptop. If each bid placed costs $0.15, we’re gonna have to multiply those two figures. So, $0.15 * 6000 = 900. So, the winning bidder will only pay the auction price, while DealDash is getting $900 in revenue for that laptop.
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Let’s lay out some more facts in detail.
We’ll take the example of eBay. On eBay, if a bidder is outbid, they don’t pay for the product. Just the bidder that ‘wins’ the auction pays.
On DealDash, each bidder pays a bidding charge each time they bid.
The cost? 60¢ for each bid. Each bid raises the cost of the product by 1¢.
Keeping this in mind, suppose you start bidding on a product when it costs a dollar. Here, you are actually raising the product’s auction cost by 1¢ (that is the maximum you can raise it with one bid). You are charged 60¢ for the bid you’ve placed. Now, at present, the product is $1.02 (your bid and the other bidder have raised the cost by 2¢ with those bids).
You need the product; that is the reason you bid in any case. So you bid once more, and are quickly outbid once more. Presently, you’ve burned through $1.20 – whether you wind up winning the product or not.
On the off chance that you wind up bidding 10 times, you’ve burned through $6 and raised the cost by 10¢. On the off chance that you bid 50 times, you’ve burned through $30 – whether you win the product or not – and raised the cost of the product by 50¢.
If you think about that, 20, 30, or more (maybe some more) individuals could be bidding on a product – the vast majority of those individuals will lose the closeout. Just a single will ‘win’ and get the opportunity to pay the sale cost. Every other person will have spent their cash on bidding charges and won’t get any product at the end of the sale.
The enormous variable here isn’t knowing when other individuals will quit bidding. In a normal sale, there is a constraining variable. Individuals will (typically) quit bidding once the cost of the product is more than it’s worth.
With DealDash and similar sites, that constraining element is no more. The genuine worth of a product is removed from the calculation. The bidding charges are the cost, and the more a customer has put their cash into endeavouring to get the product, the more hesitant they will be to quit bidding. Nobody needs to leave cash on the table; however, there’s no telling exactly when the closeout will end. It resembles a turn of the wheel, which is the reason many say DealDash scam is legit, and other comparable sites are betting destinations.
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So is DealDash Genuine or a Scam?
It may feel like you’ve been swindled, and you take this to the internet, and you will always find people with a similar story of misery, but you have to simply understand the fact that it’s just cerebral and there are no proven reports of bidding computers or any sort of illegal practices being used by DealDash. So, we would have to say – No! DealDash scam is not a thing.
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Tell Us What You Think!
Do you have any more interesting stories, facts on the DealDash scam? Let’s hear it in the comment section below. If you’re willing to start your own business like DealDash, you should check out DealDash Clone
Thank you very much for detailed blog on how it all works that’s worth reading!