phin n.

http://www.haggle.com/Auction/xbox-360-wireless-headset/*******

So, I'm checking out this site looking to purchase a Wii console. The premise is this:

You buy "bids" that are used to increment the auction price by 10 cent per bid. Depending on the lot of bids that you buy, the bids range between 55 cents and 75 cents per... bid. Each time a bid is placed, 15 seconds is added to the clock to give everyone a chance to be a winner. Got that?

Well, I decide to watch one of these auctions - a $50 Xbox 360 Wireless Headset - in its "closing minutes." Two bidders, Frosthawk and 1eden, are going at it furiously. In the end Frosthawk "WINS" at $14.10 Now, here's the math:

$14.10@. 10 increments = 141 bids
141 bids at avg price of. 65 = $91.65
$91.65 + $14.10 (winning bid) = $105.75 (this goes to Haggle)
Haggle's profit: $55.75
**Haggles profit@. 55/bid: $41.65

Now for Frosthawks savings:
Frosthawk bid 61 times
61 x. 65 = $39.65
$39.65 + $14.10 = $53.75
$53.75 + $5.00 (shipping) = $58.75
Total savings: -$8.75
**Total savings if Frosthawk paid. 55 per bid: -$2.65

Total buffoonery! Someone is making money. And it isn't Frosthawk or 1eden. Stay away from this site.