America's #1 Online Cigar Auction
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Last post 2 months ago by on63. 19 replies replies.
dumb bidders
tpot Offline
#1 Posted:
Joined: 09-01-2018
Posts: 11
I like watching ending soon auctions so I can study cigar prices, I just don't understand some people that bid way to much for a cigar there are 3 people bidding on Tabak cigarillos 4x32 tin of 10 for $21. ci price is $17. jr price is $18
Sunoverbeach Offline
#2 Posted:
Joined: 08-11-2017
Posts: 956
Dude, search overbidding and get back to me in a week when you've finished all the posts. It's an epidemic.
tpot Offline
#3 Posted:
Joined: 09-01-2018
Posts: 11
I guess it's good for cigar bid
KingoftheCove Offline
#4 Posted:
Joined: 10-08-2011
Posts: 5,169
tpot wrote:
I guess it's good for cigar bid

Exactly.........keeps the lights on...
Some over bidders are dumb....
Some just don’t care, and light their Gurkhas with $20 bills...
tpot Offline
#5 Posted:
Joined: 09-01-2018
Posts: 11
I wish I could
midmofan Offline
#6 Posted:
Joined: 04-25-2014
Posts: 804
Actually I would prefer to light a $20 bill with a Gurkha...
VaMtnMan Offline
#7 Posted:
Joined: 06-25-2007
Posts: 3,731
Some people just don't do the research, and some people have won other auctions and figure that paying an extra $4 for something with the cheaper combined shipping is worth it. And then there are people who are just idiots and help balance everything out for the rest of us.
I have seen two of the very same things closing on the same day, and one closes $10-15 less than the other one. I have long come to realize that the best thing to do, is set my max price and forget about. If I lose I know there will be another auction within the next couple of days with the same thing. I might bid on 20 things and only get 3-4 of them, but I know it was at a price that I thought would be a steal.
Ewok126 Offline
#8 Posted:
Joined: 06-25-2017
Posts: 4,285
midmofan wrote:
Actually I would prefer to light a $20 bill with a Gurkha...


Actually I would rather throw the Gurkha in the trash then take the $20 bill and buy a decent cigar elsewhere. Take the change stick it in my pocket and walk around thinking how much more educated I am than the over bidders with a huge smile on my face. BigGrin
danmdevries Offline
#9 Posted:
Joined: 02-11-2014
Posts: 10,085
Sunoverbeach wrote:
Dude, search overbidding and get back to me in a week when you've finished all the posts. It's an epidemic.


This tiny cigar auction site forum needs all the posts it can get.

I, for 1, like Roman numerals. And overbid posts.
shaun341 Offline
#10 Posted:
Joined: 08-02-2012
Posts: 8,073
You guys are slipping....15 hours in and no mention of the op using a competitor's name in their post!
Sunoverbeach Offline
#11 Posted:
Joined: 08-11-2017
Posts: 956
I'm a n00b. I'm still learning how to properly criticize
Mrs. dpnewell Offline
#12 Posted:
Joined: 08-23-2014
Posts: 954
shaun341 wrote:
You guys are slipping....15 hours in and no mention of the op using a competitor's name in their post!



Nobody buys from that dump, so they all thought it stood for "junior".

David
yankeelawdog Offline
#13 Posted:
Joined: 09-24-2012
Posts: 39
I suppose the uneducated overbidders keep Cigarbid in biz despite those among us who know how to snag a good deal. I see it all the time.
yankeelawdog Offline
#14 Posted:
Joined: 09-24-2012
Posts: 39
I suppose the uneducated overbidders keep Cigarbid in biz despite those among us who know how to snag a good deal. I see it all the time.
Pudding Mittens Offline
#15 Posted:
Joined: 08-15-2016
Posts: 653
yankeelawdog wrote:
I suppose the uneducated overbidders keep Cigarbid in biz despite those among us who know how to snag a good deal. I see it all the time.

Smart people get stuff from CigarBid near, at, or occasionally below cost.

Morons gladly bid mothership prices, MSRP prices or even higher, paying far above cost.

Here's the critically-important point though: for every smart person there are probably a dozen morons.

Result: a thriving, highly-profitable business with the owners rolling in profits, yet it's also one where we few people with functioning brains can get screamingly-cheap deals nonetheless, on the backs of the giant army of overpaying idiots.

It's a beautiful system.
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Sunoverbeach Offline
#16 Posted:
Joined: 08-11-2017
Posts: 956
Crap, that makes perfect sense. Now I need to reevaluate my irritation for the unwashed masses in dire need of cranial-rectal separation
Pudding Mittens Offline
#17 Posted:
Joined: 08-15-2016
Posts: 653
Sunoverbeach wrote:
Crap, that makes perfect sense. Now I need to reevaluate my irritation for the unwashed masses in dire need of cranial-rectal separation

Yup, they are our FRIENDS!

A good analogy is an intelligence-based, variable-prices store. In it, all the items don't have price tags, and if you want to buy an item you tell a clerk, and he gives you a puzzle. If you are able to come up with the optimal solution to the puzzle, he tells you the item is $X, but if you can't, he tells you the item is $3X.

So assuming there are 12 morons for every smart person, then out of every 13 customers, 12 customers would pay a higher price, and 1 would pay a super-cheap price.

The punchline: this is exactly what CigarBid is, it's just that the puzzle for which you must figure out the optimal solution IS the CigarBid bidding system itself!

Cool, huh?
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Pudding Mittens Offline
#18 Posted:
Joined: 08-15-2016
Posts: 653
.
A simplified, but fun, example based on the above:

We have 13 items to sell, COGS (Cost Of Goods Sold) is $1 each.
Total COGS is $13

13 customers buy one item each.

12 customers pay the dumb-guy price of $3 = $36
1 customer pays the smart-guy price of $1 = $1

$37 gross profit - $13 COGS = $24 net profit

Average sale price per item = $2.85 ($37 divided by 13)

$1.85 average net profit on each item sold ($24 divided by 13 items, or $2.85 minus $1 COGS)

Net profit margin = 64.8% (net profit $24 divided by gross profit $37)

And this is how you make healthy margins and good profits while your smart customers are buying at cost! Woohoo!

P.S. -- If you liked this example, start watching "The Profit" on CNBC, both back episodes and new ones.
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on63 Offline
#19 Posted:
Joined: 08-26-2007
Posts: 742
Some overbid. Sometimes we get a great deal. It all balances out.
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