Example

We set up an auction for a Playstation 3, with an estimated value of €450

1) The first bid is placed – The auction starts

2) The auction continues until a happy winner buys the PS3 for €19,73

This means that 1973 bids were placed in this auction and that we have made the following profits (Revenues – costs)

Revenues: 1973 bids x Average value of bid (let’s calculate on €1 revenue per bid for simplicity) = €1973

Costs: €450 for the PS3 – €19,73 = €430,27

Total: €1973 – €430,27 = €1542,73 in earnings.

Over €1500 in earnings for a PS3 that the highest bidder bought for not even €20.

Great business and great promotional value!

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