Logicalshopper
Oklahoma City,#2Consumer Comment
Sat, January 03, 2009
I just did a one month analysis of an Apple Macbook on Swoopo. I found that Swoopo is profiting about 200% of the value of items delivered. This was only a small field for comparison - based solely on 1 month (December) of auctions for the same brand/model laptop. My findings were that on one item, in 49 auctions, Swoopo pocketed more than $127,000. There were some interesting finds, such that they only come out ahead on roughly 50% of all auctions. However, those auctions they profit on include several that earned over 20x the wholesale value of the actual computer. On said Macbooks, the bids on the auction only need to reach $12.83 for them to make one penny. Everything beyond that is pure profit. The average value I found was $51.90. This meant that they grossed and average $3894.15 from all the bids placed (@.75 each) plus the $51.90 average ending price. That brings the average gross to $3946.05, and once you take out the cost of the item at Retail Value ($1299) they netted about $2647.08. Further example, one auction sold for $0.92. This combined with the profit from bids brought the gross to $69.92. Factor in the cost of the laptop, and Swoopo LOST $1228.92. However, this is completely offset by the auctions such as the one ended on 12.01.08. This auction finished at 248.03, which means they stood to gross over 18602.25 (@.75 each)from bidding alone. Then add in the final value of the computer, 248.03, and you have a gross of 18850.28. Factor in the Retail value of the computer, and they netted a $17,551.28 profit. I think it is pretty clear they are not losing money, however there is a chance to win a laptop at an extremely low value. The lowest I found was the winner of the $0.92 auction. When it was all said and done, shipping included, he had a 1299 dollar laptop for about $26.14. Just don't be like user Deafdlg and actually bid so high that the cost of bids are 200 more than the actual value of the computer. If you would like to see more of my findings, and a complete table showing said findings, please view the pdf I published. Not all values are perfect, I already noticed an error in one field after I published the file, however most of them are spot on. http://www.hotlinkfiles.com/files/2184751_j4kfy/Swoopo.pdf