Bid rivalsAs a junior account manager in an affiliation society in France, I discovered many different websites and Internet-based businesses. The following one I’ll present you was the most astonishing one I’ve discovered since that time : Bidrivals.

Indeed, this website sales many products at the lawest price possible. For instance, nathalie378 has bought a white Nintendo DSi  at only 8€ (instead of 150€ on the market). A business which is very interesting for the consumers at that time of decreasing purchasing power. Then, how such a business can sell those products at such low prices ?

Here the explanation of the business model of this website :

Bidrivals is a bid selling website. In other words, it sells many products (especially high tech products) at a begining price of 0.01€ . Then, the webuser purchases bid credits (1 credit = 0.50€) so that he may make a bid over the desired product. Each time he clicks on the offer button , the price increases by 0.01€ while spending 1 credit, and thus 0.50€. How do we know who has won the bid ? Thanks to the countdown. When the time reaches 0, then the last webuser who made the bid won the product at the final price. The webuser has the possibility to escape the game and to purchase the product at the market price.

Anyway, how the company wins money ? To explain this, we will take the previous example of nathalie378.

She won the Nitendo DSi at 8€. In other words, webusers have clicken 800 times so that the price reaches 8€ (0.01€ x 800 bids = 8€). Each time a bid is done, 0.50€ has been spent. Thus, 0.50€ (price of a credit) x 800 bids = 400€. By doing so, Bidrivals earned 400€ + 8€ = 408€. Considering the market price of this product is around 150€, we can assume the company made a 272% margin just with this sale ! Such a lucrative business !

Now you see how I was astonished by such a profitable business idea.

Click here if you want to read this article in French.