One popular method of winning online penny auctions is to stockpile bids. With some per bid fees as high as $0.90 at some sites, this can be a costly practice. One easy way to get more bids is to win them in auctions. This is why sites like happybidday.com are becoming so popular—this site gives you a large number of free bids that you can use to buy more bids with. When you win these bids, you can then use them on any other items at the site.
The main thing to remember is that you want to spend a lower total on won bids than the cheapest option that the site offers. For the site above, the cheapest bid prices are at $0.50 (1,000 bid for $500). So if you are bidding on more bids, you want to keep the final price below that $0.50 threshold, otherwise you are still losing money. This is a bit misleading, however, because the site increases bid prices if you buy fewer than 1,000. For example, buying 50 bids cost $0.80 per bid, so the site will list this auction at a retail value of $40, when in actuality you would save more money per bid just by purchasing more bids at one time. You can get 50 bids for $25 just by buying more at one time, thus saving $15. This is something you need to take into consideration if you want to be a long term winner. Saving on these types of expenses is the only way to increase your bottom line when it comes to penny auctions.