Yesterday MadBid sold an iPad 3 for a record high of £302.60. Just for fun, let’s calculate how much profit MadBid made from this one auction, shall we? Assume that all credits used were bought in yesterday’s BOGOF at 5p each. It’s 8 credits per bid on an iPad. So that’s 40p a pop. £302.60 represents 30,260 bids. 30,260 * 40 = £12104. Assume MadBid paid the RRP for the iPad, or £659, and subtract this from £12,104 and you get £11,445 of pure, sweet profit. Oh, and we’ve forgotten to add on the final price! MicY777, the winner, paid £318.80 plus whatever he spent on bids.
Of course, working out MadBid’s profit isn’t quite as simple as all that, for two reasons. One, not everyone will have been using BOGOF credits, and two, some people will have used BIN. It’s difficult to say exactly what impact these two things would have on MadBid’s profit. If some people were using full price credits, that will mean MadBid made even more. But the people using BIN will have reduced MadBid’s profit by quite a bit. When someone BINs an iPad, MadBid only make, what, £26? That’s the BIN price (£675) minus the RRP (£649). So overall, MadBid probably took home less on that iPad than £11445, but not somewhere too far off. Drinks on MadBid, I reckon!