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  • FIRST POST
    jjuk2k2
    www.telebid.com
    • #1
    • 26th Dec 07, 10:34 AM
    www.telebid.com 26th Dec 07 at 10:34 AM

    Not sure if this is the right forum, but I've just been to www.telebid.com having seen an advert on Facebook offering what appear to be really cheap electrical items.

    It is an 'auction' site, you have to pre buy your bids in 10's 20's etc and these cost 50p each but when you use them to 'bid' they only count for 7p, the other 43p going to, presumably, the sites running costs...


    Currently a 37" Panasonic TV has been around the few minutes to go mark for ages, then a huge amount of bidders appeared pushing it to over an hour to go..

    Now by my working out, currently at £434.70 divide that by £0.07 gives you 6210 bids so far (these cost the bidders 50p) so £0.50 x 6210 = £3105 taken by the site on this item alone.
    This item is fixed at £98 to the winner and claims to be worth £1099 so if we assume Telebid paid full RRP for it, they need £1001 to break even.. currently they stand at a profit of £2104 on this to date... I'm sure it will continue to skyrocket.

    If you do decide to use the site, please read the help section of the site and understand what you are doing before you go chasing that bargain....

    One other thing, the £20 voucher they give you CAN’T be used for bids, only against a successful win… This isn’t clear unless you trawl the help either…

    Hope this helps

    Regards

    James
Page 1
    • custardy
    • By custardy 26th Dec 07, 11:18 AM
    • 31,729 Posts
    • 26,428 Thanks
    custardy
    • #2
    • 26th Dec 07, 11:18 AM
    • #2
    • 26th Dec 07, 11:18 AM
    lol i looked on this site yesterday via facebook too.
    you can see how they entice people in with the low sales price but as soon as i saw a premium phone and they way the bid system works i lost interest
    • Hizz
    • By Hizz 26th Dec 07, 3:39 PM
    • 1,500 Posts
    • 763 Thanks
    Hizz
    • #3
    • 26th Dec 07, 3:39 PM
    • #3
    • 26th Dec 07, 3:39 PM
    I've just looked too and was startled to see a laptop at £20 with 18 minutes to go.
    One hundred years from now it won't matter what kind of car I drove, what kind of house I lived in, how much money I had in the bank, nor what my clothes looked like but the world may be a little better because, I was important in the life of a child.
    • custardy
    • By custardy 26th Dec 07, 8:20 PM
    • 31,729 Posts
    • 26,428 Thanks
    custardy
    • #4
    • 26th Dec 07, 8:20 PM
    • #4
    • 26th Dec 07, 8:20 PM
    yeah but how many bids? stuff goes for low prices but they offset this with premium phone bidding and the enforced bidding increments
  • sbenahmed
    • #5
    • 26th Dec 07, 9:09 PM
    • #5
    • 26th Dec 07, 9:09 PM
    Well I registered today, bought 20 bids and I won a Samsung 225BW 22" LCD monitor and all I had to pay is £9.80. Don't know if it was a stroke of luck or what but if it does come then it bloody well was considering it costs £250 brand new. Might have to sell it if it does come
    • Bamber19
    • By Bamber19 27th Dec 07, 2:43 AM
    • 2,063 Posts
    • 2,132 Thanks
    Bamber19
    • #6
    • 27th Dec 07, 2:43 AM
    • #6
    • 27th Dec 07, 2:43 AM
    surely people will realise it makes no sense to bid on items until the last second with this site?

    ah right, i see now, they add 30 seconds on when you bid so you can't do that... hmm, seems a very odd site, i can't imagine sane people being interested in it.
    Last edited by Bamber19; 27-12-2007 at 2:46 AM.
    • custardy
    • By custardy 27th Dec 07, 3:01 AM
    • 31,729 Posts
    • 26,428 Thanks
    custardy
    • #7
    • 27th Dec 07, 3:01 AM
    • #7
    • 27th Dec 07, 3:01 AM
    Well I registered today, bought 20 bids and I won a Samsung 225BW 22" LCD monitor and all I had to pay is £9.80. Don't know if it was a stroke of luck or what but if it does come then it bloody well was considering it costs £250 brand new. Might have to sell it if it does come
    Originally posted by sbenahmed
    wow and you felt the need to post on another site as a 1st post.that is lucky!!




    :rolleyes:
  • sbenahmed
    • #8
    • 27th Dec 07, 6:46 AM
    • #8
    • 27th Dec 07, 6:46 AM
    No the purpose of posting on here was to try give a different viewpoint as the site isn't that bad at all.
    • Bamber19
    • By Bamber19 27th Dec 07, 6:34 PM
    • 2,063 Posts
    • 2,132 Thanks
    Bamber19
    • #9
    • 27th Dec 07, 6:34 PM
    • #9
    • 27th Dec 07, 6:34 PM
    No the purpose of posting on here was to try give a different viewpoint as the site isn't that bad at all.
    Originally posted by sbenahmed
    It's obvious from the OP's post and example that although that it is that bad though. In many cases the winning bidder gets a good deal, perhaps getting an item worth £300 for £60 but by that stage telebid have already made their £300 (600 bids of 10p costing 50p each) plus another £60 so it's a system where the winning bidder and the company get a good deal but no-one else does. At the same time they have an odd bidding system that means an item that ends at 12.00 can still be running hours later.
  • mojam55
    Just seen an advert for Telebid and thought I would pay it a visit since I am an experienced ebay seller.

    Was stunned at the first auction I viewed.

    A Panasonic widescreen TV with a current bid price of £1741.95 this could be purchased from any reputable online retailer for around £1100.

    I can see why someone might invest a couple of quid trying to bid on something that would made less than its market value but why on earth would anyone still be bidding on this.

    http://www.telebid.com/auction/panasonic-viera-42-full-hd-ready-plasma-/53007.html

    Alex
  • Anetares
    This outfit looks great.. I just took a look at their site and one of the front page auctions is for 1000 Free Bids! Yes, 1000 free bids voucher, currently selling for only £88.83. According to the auction page, 1000 bids usually retails at £500.00, but instead they are giving you the golden opportunity of paying 50p to use a premium rate phone line to bid.. on some bids.. so you can pay 50p a go to use them again.. This site must be for people with enough money to waste that they could go and buy the premium electronics in Dixons etc. with no discounts anyway. Amusing concept.
    • custardy
    • By custardy 17th Jan 08, 3:27 AM
    • 31,729 Posts
    • 26,428 Thanks
    custardy
    amusing but very profitable.especially as they probably hold no stock and buy after the auction
    • soolin
    • By soolin 17th Jan 08, 7:37 AM
    • 58,340 Posts
    • 41,285 Thanks
    soolin
    Telebid have been doing a lot of viral marketing recently but i don't expect them to last long once people realise how much they are paying for their bargains.
    I'm the Board Guide for the Ebay Board , Charities Board , Dosh & Disability , Up Your Income and the Local MoneySaving-England board which means I'm a volunteer to help the boards run smoothly, and I can move posts there. However, do remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com
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  • Anglingman
    mojam55, don't be confused by the price displayed. This auction was probably fixed price or 100% off. As such the purchase price is MUCH MUCH lower than the current bid price. It is Telebids way of encouraging more and more bids.

    In the end Telebid and the winning bidder will both be happy having made considerable savings/profit at the expense of all the losing bidders. The concepts is very simple but very effective as it taps into peoples greed and in built desire for a "bargin". I have no problems with the concept of the site, you just have to be very fortunate to actually win an auction
    Last edited by Anglingman; 18-01-2008 at 4:44 PM. Reason: spelling mistake
    • Bamber19
    • By Bamber19 18th Jan 08, 10:56 PM
    • 2,063 Posts
    • 2,132 Thanks
    Bamber19
    I have no problems with the concept of the site, you just have to be very fortunate to actually win an auction
    Originally posted by Anglingman
    Probably because it earns you money. The fact remains that telebid are taking in more money than the final auction price, which itself is often 3 times the retail price of the item. It's a short term money spinner for you and the other owners but it wont last.
  • Anglingman
    Bamber, I am not at all involved with Telebid, frankly I wish I was ! The final bid price is often NOT the price that is actually paid, items that "sell" for large "auction" prices are invariably 100% or fixed price auctions, don't confuse the screen price with the sale price they are very much different. Yes, I agree they are making extraordinary amounts of money. But it is legal and people being people it will continue. Like you I get disillusioned when I bid and spend money but don't win an item, I have yet to win anything however Telebids future is secure as peoples greed will always bring both new customers and retain the old ones. Unless legislation changes to control auctions, which I don't believe it will then Telebid will thrive. It would be interesting to find out just how many people have complained about the site.

    Like all things the simple ideas are often the most effective, I wish I had thought of it, then I would not be sitting here writing on a money saving forum !
  • Anetares
    Wish I could recall my first post.. Hmm, pretty sure it wasn't defending the business model of another website. In any case, setting that aside...

    I don't believe anyone said Telebid is an illegally operating organisation, nor do I believe anybody said they were going to "complain" about it. There isn't any need to reiterate that it's legal or try to draw people out about "complaining" about Telebid.

    People are simply giving opinions on Telebid, some of which indicate that they think consumers can get better deals elsewhere. This is the Warnings board, people are using it to warn each other of the fact you could stand to lose a lot of money at Telebid if you don't understand the complicated purchasing and bid increments etc.

    As pointed out previously, Telebid stand to make a lot of profit at the expense of the customers who do not "win". A lot of people would not like to see fellow shoppers fall into this trap, it has nothing to do with people resenting a business making money.. it's the way in which they do it.

    Yes, from the PoV of greed, the Telebid creators are probably feeling quite pleased with themselves for thinking up such a simple way to part other greedy fools from their money. I know it's survival of the financially fittest, natural selection of the bank statement, etc. etc. etc. but that doesn't make it right.
  • cryptoguru
    what a scam!
    It's actually worse than what has been explained.
    The winner has to pay the price they won the item at as well as for their bid tokens, their bids just get them the right to buy it.

    If we look at an actual auction that recently ended:

    A Sony Playstation 3 with 40GB HDD sold for £64.40 plus £9.80 delivery, they claim its price is normally £319.99.
    You can get one new on ebay for £239.99 with £20 delivery.

    Let's say the winning bidder spent 20 bids, they only pay £94.20 including delivery, that's a real-world saving of 64% ... quite a bargain if you ask me.

    The problem is that for it to have got to £64.40, 920 bids were placed. Which means that telebid made a stonking 920*50p plus £64.40 (if we assume their delivery is at cost)
    that's £524.40, well over double the price of the Playstation off ebay. In fact telebid make 8.14 times as much on the item as what they auction it for. So when it says savings of 80% they're actually making 160%.

    What's easy to forget of course is that if everyone placed 20 bids (which is probably a huge overestimation) there's another 46 people who paid for your deal. It's basically relying on the fact that people get trigger-happy as the time approaches zero ... 'maybe this time I'll get it' ... only to have realised that everyone else is thinking the same, and the time goes back up again. This keeps on going until people have bid too many times and think, I don't think I'll get this ... better give up now. Eventually it slows down until one or two people who have spent A LOT on bidding war each other out to the end.

    It's basically gambling! Let's say you have a 2% chance of being the winner. If you invest 20 bids on average in an auction then you'll need to bid on average of 50 auctions before winning so you'll be spending an average £500 on bidding per win; don't think you'll make enough savings to justify that.
    It's not a lot different to a game of online Texas hold 'em only there's more skill required at playing poker, plus you have an idea of your chances with poker.

    In fact it's a cross between gambling and a MLM like Amway, where everyone is sold a dream and everyone else pays for you to have yours!

    There is one possible way to make telebid work in your favour and that is to analyse the statistics of how many times an auction gets to 2 seconds or less (or something similar). It will be proportional to the RRP of the item, as people are willing to spend more on bidding if they're saving roughly 60%+ off a more expensive item.
    You may be able to determine the maximum amount of bids you'd need to spend to get to the end of the auction. You can then factor in the cost of bidding and your expected end-price of the item. Then you just have to bid everytime the auction hits 2 seconds and hopefully you won't run out.
  • nicky1312
    hello
    im just being nosey about this telebid does anyone know if u just happened to be a lucky winner after maybe just a couple of bids do u recieve the goods ok and how much is delivery does anyone know?

    been sitting watching these they must be making a complete fortune and more
  • p4r4s1t3
    it's a rip off.

    I bought 20 bids, and I was bidding on a nintendo DS. Obviously, 20 bids/£10 worth went in about 2 minutes. I thought i'd carry on, iv got a few bids left and it's still going. However...it gets down to 3 seconds, 2 seconds, 1 second..someone else bids, it goes back up to 20 seconds. Then every now and then, instead of jumping back to 20 seconds, it goes up to 5, even 10 minutes.

    How is that fair?
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