The Buy it Now (BIN) feature enables you to buy the item under auction from MadBid for the BIN price minus the value of the credits you have spent bidding on the auction.
Know your BIN price
The BIN price is how much you can buy the item for from MB. Click the ‘buy now’ button and it will tell you what your BIN price is. My BIN price for the iPad 3 right now is £595. If I wanted to, I could buy it from MB for this price. I wouldn’t do that, however, because I could buy it directly from Apple for less: £579. (Note that the BIN price will almost always be slightly above the product’s RRP.) I would BIN the iPad, though, if I had placed £595 worth of bids on the auction and hadn’t won it. In this situation, if I didn’t use BIN, then I would effectively lose £595.
I buy my credits for 5p each. Bidding on an iPad costs 8 credits per bid. 8 * 5 = 40. 59500 / 40 = 1487.5 So if I bid on an iPad 1488 times, and didn’t win with any of my bids (unlucky me!), then I could BIN the iPad for £0. I could also BIN the iPad after placing 1 bid, having earned a discount of £40p, for £594.60 if I wanted to (I wouldn’t, you understand, I’m just saying I could, theoretically).
To sum up the above, you should BIN when you have spent 100% of the value of the product under auction on bids and not won.
Use BIN to build a reputation
Using BIN is the perfect way to build a reputation. It isn’t risk-free, but it’s as close to it as you can get. Consider the alternative: an iPad 3 auction with no BIN. Spend £549 worth of bids on the auction, and there is no guarantee of winning it. You could walk away empty-handed. Spend £595 worth of bids on an iPad 3 auction with the option to BIN, and in the worst case scenario you walk away with an iPad that cost you (595 – 549) £46 more than it would from Apple. That’s a lot better than losing £595. And of course, you could win the iPad after only spending £5 worth of bids. Unlikely, but possible.
Here is a YouTube video I made covering the above.