Internet - Consumer Services (B2C) | Services - Amusement & Recreation

Asking Price	$600,000	Inventory
Gross Income	Not Disclosed	Real Estate
Cash Flow	Not Disclosed	Year Established	2009
FF&E	$300,000*	Employees	3

* included in the asking price

** not included in the asking price

Catalyst Business Brokers is pleased to present a unique, worldwide Penny-Auction business model that exceptionally specializes in the travel industry. Penny Auction sites are very different from ebay because they auction their own merchandise or items, and there are not any third party sellers trying to move many used goods like on ebay. Most Penny Auction sites sell electrical devices and household items. A bidder can find the latest console games, digital cameras and HDTV s at prices that are 60-90% off the retail value. The other distinct advantage over ebay is that all goods are brand new and include the original manufacturer s guarantees and warranties. Penny Auctions sites charge bidders on a per-bid basis to participate in an auction. Bidders are required to purchase their bids before actually bidding on any items. Bids are purchased in bundles and each bid costs 75 cents. Bids never expire. The site owners earn revenue form everyone who participates (i.e., bids) not just from the winner. Example: A golf vacation package for 2 valued at $1,000 that is eventually sold for $45.32, generates income from bidders equal to 4,532 times $0.75 (the number of $0.01 bids times the price paid for each bid increment), or $3,399. While the winner pays $45.32 plus the number of bids he placed times $0.75, say 50 bids at $0.75, or a total of $82.82, the unsuccessful bidders pay the balance of $3,316. While the concept is not new, this innovative business offers the only Penny Auction site that auctions travel packages (airline tickets, hotel nights, cruises, golf packages, car rentals, ski packages, vacation and other destination packages), in addition to electronics, computers and appliances. This is the perfect business model with a tremendous profit potential.

Facilities: Very unique, worldwide Penny-Auction business model that exceptionally specializes in the travel industry

Competition: Most Penny Auction sites sell electrical devices and household items while this site offers exceptionally good deals in the travel segment: airline tickets, hotel nights, cruises, golf packages, car rentals, ski packages, vacation and destination packages

Growth/Expansion: It s genius. Everyone is potentially a winner! The consumer buys an item for pennies and the auction site pays for the lots through the sale of the bids themselves. In some cases the auction sites openly declare they do not hold the item in stock. This is the perfect business model with a tremendous profit potential: As bidding progresses the more the bidder will want to win. As the current bid, along with the cost of bidding approaches the retail value of the item, the need to win will become more urgent.

Financing: Seller may finance up to 50% at 8% for 3 years

Support/Training: 14 days

Reason Selling: Other interests