Going once, going twice, hope the price is nice

Computer Life column for July 18, 1998
by
Richard Gordon

Last week's column generated a letter from a reader about the virtues of on-line auctions.

"No article on buying a computer--or anything else--is complete without mentioning the great deals that can be found at Internet auctions," he wrote. "Last month I bought an HP Pavilion P2-266 with a ton of software and a 17 inch monitor for under $1000."

Yahoo lists hundreds of Internet Auctions (www.yahoo.com/Business_and_Economy/Companies/Auctions/Online_Auctions/), including my correspondent's favorite, OnSale (www.onsale.com).

"I purchased my new computer system, two boom boxes, and a GPS satellite navigator from OnSale over the last 3 months. They have a brilliantly conceived and executed site. From the time you bid to the time the item arrives at your door, you are continuously updated on [your bid's] progress. You are even automatically linked to your item's UPS tracking page."

OnSale and Auction Sales (www.auction-sales.com), another on-line auction service that has received good reviews, are impressive sites that offer lots of potential bargains. Earlier this week, the leading bids on some 300 Mhz Pentium II computers at Auction Sales were around $200. However, the "winning bids" may end up be closer to $500; the systems are made by a company I don't know; and the terms and conditions clearly state that you can return the systems only if damaged.

In contrast to my correspondent's experience, several people were less than thrilled with the OnSale auction of some refurbished Hewlett Packard 233 MHz systems (with no monitor and no "serious" software). As the top bid reached $899 (plus shipping), one person who had submitted a bid of $609 commented, "Stop overbidding the PC's!" Another customer lamented that her son had bought a similar system at OnSale's last auction for $599.

By contrast, this week Gateway (www.gw2k.com) lowered the price on their low-end 233 MHz system to $999--including a 15" monitor, Microsoft Word, and some other goodies.

Lots of things are available for auction on the Web. Eworld Auction (www.EworldAuction.com) offers rare books, maps, and prints for sale. Several sites offer Beanie Babies, commemorative plates, trading cards, and other "collectibles" for auction. For instance, at Global Auction (global-auction.com), someone paid $34 for an autographed copy of bluegrass music legend Don Reno's 33 RPM LP "Fastest Five Strings Alive."

Both the Federal Trade Commission (www.ftc.gov/bcp/conline/pubs/alerts/gonealrt.htm) and the Better Business Bureau (www.bbb.org/library/auctions.html) urge us to exercise caution before we go on-line bargain hunting.

• Pay for auction merchandise with a credit card, so that, if you get ripped off, you can challenge the charges with your credit card company. If an on-line auction only accepts "cash" (money orders, certified checks, wire transfers), you have no easy recourse if the merchandise never arrives.

  You could also use an escrow agent; however, most agents charge for their services.

• Can you verify the seller's identity and reputation? "If you can't," says the BBB, "consider this a red flag and avoid doing business with the seller. Some sellers may use a forged e-mail header, making it impossible to contact them."

• As with any "bargain," check to see what support will be available to you after the sale.

• It seems so cool to bid over the Web; however, be careful about impulse purchases. Even reputable auctions are still auctions. Before you participate, you need to research the true value of the items on which you're bidding.

Buying things via Web auctions may not be for everyone. Whether or not you get a good value at an on-line auction depends on when you bid and, as at any auction, on what other people are willing to pay. But reputable on-line auctions are certainly a resource a savvy shopper should investigate.

Copyright © 1998, The News Journal Company

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