Have you ever heard of "Penny Auctions?"

They’re a new online auction model that is becoming hugely popular.  Penny auctions allow individuals to do just what the name implies--buy new, popular products for just pennies on the dollar.

One of the most interesting and successful companies offering penny auctions is called QuiBids.  This Oklahoma based company auctions off brand new products such as iPads, Macbooks, HDTVs, Digital Cameras, Gaming Consoles, and more for steep discounts, often as much as 85 percent off their retail price.

So, how do they do it?  In the case of QuiBids, it’s quite simple. You see, whenever a prospective buyer places a bid for an item on QuiBids, the company collects a small fee. This fee is really inconsequential to the bidder, but based on the volume of sales and bids, the company is able to collect a substantial amount.  This revenue allows the QuiBids to sell these expensive products to the winning bidders, even if their bid is only a tiny fraction of the value of the product.

Savvy bidders have recently been able to buy a brand new Apple Macbook Pro for $23.90, a Nikon D90 Camera for $45.84, and Sony Playstation 3 for $12.32.  On average, buyers pay just 25 percent of retail for items they win in auction on QuiBids.

The auctions are also insanely fun.  Each bid costs just 60 cents, and each auction has a strict time limit.  When you place your bid, the system adds a little time to the auction to see if any other bids come in.  If you have the winning bid when the clock runs out, you win the item for that price.  According to QuiBids CEO Matt Beckham, “A huge part of our growth is generated by word-of-mouth and friends recommending us to their friends--so, we must be doing something right.”

But, the best part of QuiBids may be the “Buy-It-Now” feature.  This allows bidders who did not win an auction to still buy the product they want and apply the cost of the bids they placed as a discount on the regular product price.  So, you still get the item and the bids you placed previously in the auction don’t cost you anything!

Some customers have really made out like bandits on the site.  We spoke with Cyril Bennet, a QuiBids customer in Arizona who recalled a recent auction that he participated in. “As I was bidding, my roommate was asking me how the auction was going. At that moment, gazing at the screen, I watched as the timer read, '3… 2… 1…SOLD!' and I won this VIZIO 32 HDTV for $2.60.  True story. I’ve really enjoyed using QuiBids…its awesome!"

In today’s tight economy, it’s more important than ever to seek out the best possible deals on must-have items.  Sites like QuiBids give savvy shoppers the opportunity to nab products at ridiculously low prices. Add in the element of fun, and the fact that their “Buy-It-Now” feature means that you can’t ever pay too much--and, it means there is simply no reason not to try it out for yourself.