PennyGrabber isn't exactly turning copper into gold, but they are indeed turning pennies into dollars.
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Atlanta, GA (PRWEB) February 2, 2010
Kameko Oliver, founder and CEO of Elite-Electronix.com and PennyGrabber.com, seeks to introduce fun and transparency to the world of penny auctions, also known as entertainment shopping. Unlike traditional auctions such as on eBay, bidders must purchase bids in advance in bundles of 25, 50, 75, 100, or 750 bids. Each bid costs $0.75, but within the penny auction arena, that $0.75 bid is reduced to the value of one penny. Because bidders can only bid in increments of $0.01 at a time, a penny auction's end price will remain extremely low for the auction winner, while still allowing the merchant to recoup their cost and often times earn a healthy profit. Because there can only be one winner per penny auction, all those who placed at least one bid can then apply those used bids towards the retail purchase of the product. This option is called "PennyGrab It Now" and allows shoppers to try their luck at winning the item they wish to purchase in a penny auction first in hopes of saving up to 90% off the retail price. However, if the shopper does not win the auction, they can still purchase that product from the PennyGrabber e-commerce store, and simply apply their bids as a discount.
Kameko says, "Because PennyGrabber is comprised of 3 core components: a social shopping network, a penny auction and an e-commerce store, PennyGrabber can sell virtually anything via penny auction." From an American Express gift card, and high-end electronics, to a fully paid trip around the world. Social Entertainment Shopper's can purchase virtually anything of value at a substantial discount, at no loss to PennyGrabber. With Social Entertainment Shopping being an innovative, and virtually unknown shopping genre, PennyGrabber seeks to establish a strategic partnership, and secure investment capital in exchange for private equity in the company. Kameko says "with the right strategic partnership, the right marketing strategy, and ensuring customer service is of the utmost importance, Social Entertainment Shopping can very well disrupt the $146B e-commerce industry in a very good way."
PennyGrabber is poised to take advantage of the recent growth in social networking, and mobile Internet access. With more users now having access to broadband internet from their mobile devices, consumers are more inclined to shop from the comfort of home, or anywhere else they may have high speed Internet access. By incorporating a social network within a purely shopping environment, and adding the benefit of buying premium products for pennies on the dollar, Social Entertainment Shopping has all the right elements to become one of the preferred online stores among e-commerce titans such as Amazon, and eBay. PennyGrabber at its core, is designed to be the Facebook equivalent of e-commerce.
Example of a penny auction: An American Express $500 gift card sells for $100.00 in a penny auction. With $100.00 = 10,000 penny bids.
(10,000 bids) x ($0.75 per bid) + ($100 from auction) = $7,600 revenue
$7,600 revenue - $500 gift card = $7,100 profit
From the exceptionally high profits shown above, PennyGrabber isn't exactly turning copper into gold, but they are indeed turning pennies into dollars. But best of all, they enable the e-consumer to purchase, or "PennyGrab" virtually anything for literally pennies on the dollar, all within a social shopping network environment.
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