In recent years, DealDash has become one of the most talked-about auction sites in recent memory, due to its unusual pay-to-bid auction format. Although it is not a scam in the sense of just being a complete scam, it is a legit business, and items are sometimes won; many people feel as if the overall business structure resembles unregulated gambling. Once a person understands the mechanics of DealDash, as well as the risks, they can definitely avoid some hidden traps.
How does DealDash work?
DealDash is not an online store; DealDash uses a pay-to-bid auction site format. Rather than simply buying products, users need to purchase “bids” ahead of time in order to participate in bidding for auction items.
Paid Bids: Each bid costs about 65 cents. The paid bids function as the currency to be used in order to bid on auction items from electronics to household goods.
Bidding Process: When a user bids on the item, it raises the bid by a penny and resets the timer. Whoever bids last before the timer goes to zero is the winner. It seems like a fun, cheaper way to win an item at a bargain, but the total cost comes from how many bids the user actually experienced and not the final auction price. The concealed expenses and risk
The Possibility of Overspending
A common complaint concerning DealDash is that users end up spending more on bids than the actual retail price of the item. While advertisements display exciting images of winners winning expensive items for a few dollars, they do not disclose all the hundreds of failed bids that are incurred during the process. Even winners will often think that once they take into account all the bids they purchased, the overall cost is much higher than the retail price.
A gambling-like experience
Organizations, such as Truth in Advertising, have suggested that the DealDash business model is very similar to unregulated gambling. This is because users are risking real cash every time they place a bid, without any promise of winning something in return. Like gambling, DealDash retains participants with “almost winning” entertainment, creating an experience where the user will often overspend money.
Psychological Tricks
The homepage has utilized psychological behaviors commonly found in a casino. For instance, the countdown timer creates urgency. An overall small rise in price leads to a false sense of control. These components help cause users to bid indiscriminately and make other impulsive or emotional decisions, particularly new, untrained users.
Is DealDash a Scam?
From a technical perspective, DealDash is not a scam; it is a real and legal business, and it does provide products as promised. However, in its marketing and auction style, participants can easily be misled into not fully comprehending the costs of participating and how much the tiny price increases will add up if they use the site repeatedly. The profit structure is stacked against users. Emerald, they all bid excessively for the items because DealDash remains profitable even when the vast majority of participants win nothing. The system favors users who come at it as a commitment and understand the risks of participation, whereas inexperienced users tend to look at it as a low-cost shopping option, likely to lose money and not save money.
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