OMG Genius!

This is a business I SO wish I had thought of! 

I discovered this new auction site where you can bid for luxury brand names like Fendi, Gucci, Louboutin, Tiffany&Co. and Chanel (among many many others). It's called oohilove.com and they claim you can save 90% off authentic designer handbags, wallets, shoes, jewelry, gift cards, and accessories. On this site, IF you have enough patience, you can own these goods with retail prices well over a grand for as little as $20! I read of a case where someone won a Gucci wallet for $14.98! Basically, you buy bids for 99 cents each (you can buy them in packages of 30, 50, 100 etc.). However many bids you buy is however many times you can bid for an item (yes, any item - you can allocate however you'd like). When you bid for an item, the price of the item will raise 2 cents, which is not much at all.  What is different from other auction sites is that when you click "bid", the timer that marks the end of the bid will also raise 10 seconds, giving other people more time to bid. Of course, it is most wise to bid when the timer is at its last few seconds.  You can imagine how long an auction could last with this system!!

I've been "spectating" (I swear it can be a sporting event) an auction for a Chanel wallet-clutch. Very classy, very gorgeous. Retails for $1,804.00.

Like all bids, this one started at the minimum of $0, but I've started watching when it was $59.04 about an hour ago when the timer had 5 seconds remaining. Ever since, a handful of bidders have continuously bid and currently, the price is at $70.58 and 10 seconds remain. 

So you might be thinking, "yea... so what? good for them - one of them is going to get Chanel for super cheap tonight."

Unless you've already figured it out, I'll point out the whole genius idea by doing the math for you:

The company bought this bag for full retail price.  $1,804

The current price is at $70.58

Since each bid raises the auction price by 2 cents, that means the "bid" button was clicked 3529 times ($70.58/$0.02).

And remember, every bid costs the bidder 99 cents so 3529*$0.99 = $3493.71.

SO even though the company bought the item for only $1,804, they are selling it for $3493.71+ (more because the auction still has not ended) WHICH gives them a current profit of $1,689.71!!!!

Think of all those people who buy bids and try bidding on these goods without winning anything.  HOW COME I NEVER THOUGHT OF THIS! Okok.. yea sure, I can't afford to even start the company off right now, but with such a great idea, I'm sure I could get sponsored quickly.

And it's true that not every auction is profitable - you take a chance, hoping the item will be coveted enough for people to bid. But, with the right kind of buyers (I mean, people hired by the company to decide which items would be result in the greatest profit), this new company will have the ability to reap in millions per year. I'm thinking this company is definitely one to keep your eye on. It has a functional website that's easy to navigate and is pretty pleasing to the eye (though I'd change the font of the words in the turquoise headings). The company is happy, the winners are happy, and (most) of the bidders didn't spend enough to be unhappy not winning so we all pretty much win!

Actually, it's really annoying to "spectate", though.. just end already!

To see a how-to video on how to bid and all, click here.