A neighbor asked me what I thought of a site called DealDash.com where it is possible, at least theoretically, to obtain branded merchandise for ridiculously low prices …
And look what I found …
Some lucky bidder managed to get a great tablet for under $10.00 and an $800.00 gift card for only $62.12. You can’t beat those deals. But, if you made 200 bids to grab that card, the chances are that you actually paid between $60.00 and $120 for the right to purchase the Amazon gift card (exclusive of other charges and fees that may apply) for $62.12.
But the real question is how often can an ordinary person grab these deals? Assuming, and I have no reason to believe otherwise, that DealDash is not a scam, and the laws of the universe are not suspended on this site, what is the likelihood of successful bidding. Because there are no published statistics that would allow me to rationally analyze this proposition based on hard data, I simply looked to the Deal Dash people for the answer.
Buried in the DealDash “Terms of Use” is this explanatory caution …
By registering and using DealDash you understand that you are likely to spend more money than you may receive in merchandise value. Most customers using the site gain less in merchandise value measured in monetary value compared to the amount of money spent bidding to win auctions. Do not buy bids or spend money on the site if you cannot afford to lose the money. DealDash is constantly attempting to maintain fairness and balance in its auctions therefore some new users or users who have lost auctions may receive special promotions, access to special auctions and/or free bids through site features. This is designed to maintain fair practice and helps balance and create a great auction experience for all users.
DealDash is convinced that the entertainment value of participating in its auctions is valued and that paying a premium price for this entertainment value compared to shopping at the lowest priced retailer is fair. We do however strive to give as much merchandise value back to our users as we possibly can while maintaining healthy gross margins. Most customers will not win auctions and you are on average unlikely to save money using the Site. We recommend that you take advantage of the Buy it Now option as it will return all of your lost bids when used. Most customers who use the Buy it Now remain loyal to the Site far longer than those that do not. By using the Service you understand and agree to this statement. <Source>
Investigating further …
As I understand the process, you purchase bids. Each bid cent can cost you up to 60-cents. So, if you see that the $800 Amazon gift card was purchased for $62.12, that means thee were likely 6212 penny bids; costing the bidders say 30-cents. Doing the math means 6,212 x .30 = $1,863.60. Leaving $1063.60 after purchasing the Amazon gift card at full price – a great profit after paying for site operation and management overhead. So while one lucky individual makes out like a bandit – for at least this one transaction – there are 6,211 losers who should be wiser after the experience. But hope springs eternal in the realm of human nature and some people are prone to gamble, even if the recognize that the odds are stacked against them. You might be better off playing in Vegas than on a deal site.
There is also the liklihood that some of the name brand merchandise was purchased at significant discounts, are manufacturer's closeouts of end-of-the model or end-of-the season discounted merchanise; thus increasing the profit margin for the site's owner.
What does the Federal Trade Commission have to say?
How does a penny auction work?
In a penny auction, the site owner posts items and you pay to bid for them. Unlike a traditional auction, where only the winner pays, penny auctions require you to pay before – and as – you bid, win or lose.
You may have to pay a fee just to register for the site, and sometimes, it’s substantial. Then,you have to buy a "bid package." For example, you may "buy" 100 bids for $50. Additional bids cost more money, often between 50 cents and a dollar per bid.
The price of auction items usually starts at zero, and each bid bumps the price of the item up a penny. Each bid also adds time – from 10 seconds to 2 minutes – to a countdown clock. The goal is to be the high bidder when the clock runs out. But because the clock resets with each bid, the auction process can be unpredictable and take time to complete.
What does "winning" mean?
Winning the auction doesn't mean you've won the auction item: It means you've won the right to buy the item at the final price. For example, your $50 winning bid for a camera might seem like a bargain, but if you placed 200 bids that cost $1 each, your cost will actually be $250 – plus shipping and handling, and possibly a transaction fee.
If you lose an auction, chances are you've lost your money. If you placed 199 bids on that camera, for example, you'd be out $199. Some penny auction sites have a "Buy-It-Now" feature that lets losing bidders buy the item at retail price and apply the amount they spent on bids as a discount. So, you might not lose your investment in the bids you purchased, but you wouldn't save any money off the retail price, either. Source:http://www.consumer.ftc.gov/articles/0037-online-penny-auctions
Apparently, it is as legal as the penny arcade where you toss your money at those dishes. And, with the same effect.
Bottom line …
When you purchase a deal package to bid … chances are you are already a loser and you should consider that money lost forever!
Unless you believe playing on the DealDash site is more fun that visiting the mall – and you might be extraordinarily lucky – the probability (most customers over bid) of getting a deal are relatively small, especially since previous losers and newbies might receive preferential treatment. I wouldn’t do it because it appears to be a waste of my time to spend dollars chasing pennies – or in this case spending pennies to chase the chance at dollars.
But what really made me curious, is why isn’t this game play regulated as gambling? At least to me, where people lose their bid if they don’t win the product, it appears to me to be a prima facie scam and a waste of time, money, and effort.
-- steve
Even our "crazy" mass murderers are never so "crazy" as to attack a known place which is NOT a "Gun Free" zone, such as a police station, and NRA convention or a target range.
Tyrants want their subjects unarmed!
It does not matter what potential targets you prioritize to protect with rigorous security, there will remain soft targets that will achieve a terrorist's objective.
If a military installation has restricted entry, target the school or day care center where the soldiers take their kids. If the Pentagon is secure, target the Pentagon metro station.
Would you be more terrorized by an attack on Joint Base Andrews, or by a suicide/homicide bomber at your annual church picnic?
I can't see myself terrorized by terrorists any place. Instead, if I actually thought I'd ever meet any of them I'd be taking steps to insure that I can shoot back.
My point is that, as a nation, we would probably be a lot less concerned about our vulnerability to terrorism if the targets were the types of places that we typically protect.
When those targets become too risky or too difficult to attack, there are plenty of places that the government not only does not protect, it proudly declares them to be gun free zones.
Points to remember about the attack on Gabby Giffords in Tucson in 2011. The crowd around Giffords was dense enough that the people who had CCW permits were not able to identify the shooter, and wisely held their own fire. This is normal when citizens are responding; and statistics show that bystanders are more likely to be shot by police responders than by citizen responders.