Want to buy a new iPad 2 without paying the grey market premium? You might want to check out local auction site blick.sg (which happens to be an advertiser on this website). A new 32GB white iPad 2 (WiFi only) is on the block and the current bid is just S$1.15 with just three hours to go.
In previous auctions, high priced items have been sold off for a song. In the last week, one lucky person paid S$153.90 for a brand new 16GB iPhone 4 while someone else paid just S$6.90 for a 16GB WiFi+3G original iPad.
These sound like outrageously low prices, considering that a new 16GB iPhone 4 costs S$888 while the iPad costs S$718. However, as blick.sg co-founder Kee Yi Arn explained, the site's business model is to get people to pay for the priviledge of bidding for an item (it costs S$0.75 to place a bid). The final price is low because each bid only increases the cost of the item by just S$0.05. However, since blick makes money when more people bid for the item, they are actually able to make a profit per item even if the item is sold for a fraction of its retail price. As a result, the site actually made money selling the iPhone 4 though they did lose money on the iPad, said Yi Arn.
He describes the auction site as form of entertainment. "It's for risk takers who enjoy the thrill," he said.
Apart from the iPad 2, blick's site currently has auctions running for the Razer Onza Pro Xbox game controller, Nintendo's 3DS launch pack and a silver iPod shuffle.
Follow @imerlion on Twitter or like us on Facebook!