Wyngle Promises $1 Goods, But Lacks Value For Most Buyers

Wyngle is a bargain site with an unusual twist: there's a guarantee that a set number of the items will be sold for $1, rather than the listed price. For instance, right now there's a bundle including a 16GB iPad 2 and a keyboard dock selling for $742.90, but one in 10 sold will go for $1 instead. Does that make for a good deal? The answer: probably not, especially for solo buyers.

The site points out that if you group with friends, you can guarantee that one of you will get the $1 price, and then split the overall cost. But if you're buying just one item and you're not one of the lucky $1 buyers, then you'll have to pay the list price, which won't necessarily be a good deal.

Note: I've updated and expanded the calculations below to reflect the fact I didn't notice all the elements in the iPad 2 bundle. Apologies for the error — though it does underscore the point that double-checking prices is always a good idea!

One example: the 16GB iPad bundle mentioned before is $742.90, plus $20 for postage. If you got together with 10 friends, the total price would be $6887.10 (including individual postage for each item).

Wyngle values the items as follows: $579 for the iPad 2, $59.95 for the Speak FitFolio case, $79 for the Keyboard Dock and $24.95 for the packet of screen protectors. That means you're not saving anything on the standard buy, especially once you've paid postage.

What if you go bulk? Contrary to my earlier calculation, there'll be a slight saving, but not a massive one — effectively, you'll get the case and screen protectors for free. This also presumes you can line up 10 iPad-buying friends you trust enough to throw close to $7000 on your credit card.

Equally importantly, that's one of the more generous options. As a commenter notes below, the site is also selling a Brother printer for $234.95 on a 1-in-4 deal. The same option can be had from Officeworks for $126 — a saving of $50 an item even if you buy four of them, and more than $100 if you just buy one. In other words: no matter how many you buy, you'll overpay.

Another note: the site points out that you can't get a "change your mind" refund, in order to prevent people gaming the system. That's understandable, but the claim that refunds on defective goods may be available "subject to the supplier's refund policy" is nonsense. Under Australian consumer law, you are entitled to have defective goods replaced or refunded, and the onus is on the company that sells you the goods to ensure that happens. Retailers can't pass the buck that way.

The big lesson here is that for any given retail option, it pays to shop around. To my mind, a chance of getting an item for $1 doesn't offset the odds I might be paying $100 or more over the odds. If you do want to buy this way, recognise that you're gambling and do your research very, very carefully.

Wyngle


Comments

    So... it's basically a gambling site.

      I think you missed the point TSH, when you go shopping you can get a buy 2 get one free on you carrots! or buy a multi pack of crisps with an extra packet inside. Wyngle is no different from a normal promotion excep everybody has an equal go! You don't have to buy a hundred items to get your free crisp packet!

      I think its a good idea! shame they don't sell video cameras!

    I'm curious to see if Wyngle post in the comments to respond to this article, and if so - what they end up saying.

    Honestly, it sounds like a gimmick to attempt to dupe people desperate for goods that they normally can't afford to gamble on getting it for a ridiculously cheap price.

    "There's another sucker born every minute" 'P. T. Barnum' #]

    Interesting article, it is just a shame that the reporting is not very accurate. Perhaps it would be best to contact Wyngle before attacking them.

    Personally I think the concept is cool and had the iPad 2 deal been properly reported on the Folio case and Shield view would also have been mentioned.

    I'm sure the boys at Wyngle will not be phased, from what I hear along the grape vine the site and consumer uptake has been great.

      There are multiple iPad 2 deals on the site that I can see -- not sure you're comparing the same one. And the same issue applies to lots of other categories as well.

    Wonder what it would take to get a published "audit" on their offer. To see if 1 in 10 really do get the items at the reduced price.

    One of the other items I saw quickly looking at the site, a Brother Laser HL2240D. $218.95 at Wyngle (plus $16 delivery), with a 1in4 deal. However it's only $126 with free delivery at Officeworks. Price difference is $704.85v $504.00.

    Not exactly a good deal now.

      Well I've answered my own question. They apparently have a permit from NSW Lotteries.

      So the previous comments about it being a gambling site are more than correct. Every purchase legally is a gamble, how bout that.

    Thanks for the opportunity to clarify how Wyngle works.

    We believe the iPad 2 bundle is actually a good deal if you look at what's included. The bundle includes the iPad for $579 (the same price as Apple) plus you get an Apple keyboard dock, a Speck case and shieldview screen protector which totals $742.90 RRP (which is our advertised price) plus $20 shipping Australia wide.

    See details here: http://www.wyngle.com.au/apple-ipad-2-bundle-16gb-keyboard-dock--d435

    You might be able to find this bundle for slightly cheaper if you shop around, but you won't get the chance to pay only $1 anywhere else. Apple products generally aren't discounted, so the iPad is a harder product for us to create a compelling deal on, but we think it's still worth having a go on such a great product.

    If you have a look at some of the other products on Wyngle such as the Cell team Shimano 105 bike or TechnoMarine Cruise Sport watch, you'll be hard-pressed to find them cheaper anywhere else, plus we offer them to you with a 1 in 3 chance of only paying only $1.

      Just out of interest, as a retailer, how do you handle refunds? Wouldn't they break your modelling on how many you can provide free?

      I've updated the post to reflect the contents of the bundle. That said, I'm still not convinced it's a good way for people to save money, especially with the printer example. As ever, the big lesson is "shop around".

    @ Blake

    We do have an LTPS number to provide a level of comfort for our customers around the $1 purchases being issued correcty.

    Just to clarify, we allocate the winning purchases sequentially, not randomly, so if you buy 3 items at 1 in 3 you will be guaranteed one of them for $1. This is another way we prove that the system is legitimate.

    It's our aim to provide great deals for Australian shoppers, but we can't always ensure every deal is the best one out there. We've only launched today and I think if you look around, we've got a pretty good range of products with a competitive offer on most of them, particularly if you can pick it up for $1.

    We welcome everyone's feedback to help evolve the site and ensure we're listing great deals for everyone.

      If I bought three items with one being quite expensive and the others cheap, how do you work out which one is the $1.00 product, the third or the cheapest? What if I'm behind someone with two purchases that didn't win, and I had one product, do I get the $1.00 deal? Or is it all blind and you have no idea whether you qualify? #]

        Comments here and on the Wyngle site suggest that it's strictly sequential and can apply in a single order: if it's a 1/3 and you order three, one will definitely be sold for $1. If you're buying on your own, it's down to chance.

        @ EckyThump

        Each item has it's own sequence, so if you buy 3 different items, you won't be guaranteed one for $1. On the flip-side if you're lucky you could get more than one of them for $1.

        If you're behind someone who bought two items at full price on a 1 in 3 deal, then you will only pay $1 for your item.

        To ensure the integrity of the system, no one knows where they are in the sequence.

    @ Technojames

    Because of the way Ratio Shopping works, We can only offer refunds if the goods are faulty. Most of the items we list are readily available in the market, so you do have the opportunity to make sure it's what you want before you purchase.

    This is all explained on the site if you'd like more info.

    @ Angus

    Thanks for the update to your article.

    Just to clarify what you've confirmed on the iPad deal - we offer the normal price for the bundle plus you have a 1 in 10 chance to pay only $1. We believe that's a compelling deal. 1 in 10 is the highest ratio on the site, so we've got significantly better deals down to 1 in 3.

    Also confirming that our Brother printer bundle includes a toner worth $69.95, so here's the comparison:

    Officeworks
    printer $126 + toner $69.95 = $195.95

    Wyngle
    printer & toner $218.95 + postage $16 = $234.95 with 1 in 4 for $1

    This means that if you buy one item and don't win, you will pay $39 more at Wyngle, but if you buy 4, you will be guaranteed one for $1 and will pay $77.95 less across the board. If however, you buy one and win, you will only pay $1 plus delivery and end up paying $178.95 less at Wyngle. That is a good deal.

    All of our deals are at or under retail prices, but with the added bonus of having a chance of paying only $1.

    In some cases we have to create bundles to make the ratios work, however, based on the feedback here, we now understand that not everyone is understanding that these are bundles, so we'll be updating the site to make it clearer that they're bundles.

    Appreciate the input.

      "If however, you buy one and win [...] That is a good deal."

      No, that's a big gamble.

      Don't get me wrong, I agree with your next comment: "All of our deals are at or under retail prices..." - That could be a good deal :)

      So are you saying the Brother printer comes with a 2nd toner (over and above the default in box toner).

      Even so. Using the supplier YOU link to (EZY Electronics), the printer is only $100.20 and the toner is $61.10. So total $161.30 including FREE shipping.

      Forget Wyngle and buy direct because its $721.85 (234*3+17) at Wyngle vs $645.20 at Ezy. Save $76.65 by ignoring Wyngle.

    I have to say, I am pleased to see a company respond so well to poorly researched reporting. Even after having to backtrack on the initial slant to the article, I find myself chuckling that the reporter has made the same mistake twice!

    I will certainly be looking to Wyngle from now on for my purchases. Loving the 1:3 deals Wyngle, keep them coming!

      Wow Nomad. You certainly are the company stooge. After reviewing the article (admittedly the updated version) and having a look at the website the prices are at best only average to what else is online and in my mind the "gambling" aspect adds nothing.

      All in all, just like a gimmick.

      Something about your two posts here are strange - your name is tagged with the Wyngle URL... yet your posts are worded as if you are not part of the company. That being said, the tone of your posts is extremely pro-Wyngle... to the point where I can't help but wonder if you do actually work for them... and the narky nature of your posts only serve to diminish any goodwill roused by the calm, even responses of 'Wyngle'.

      Either way, whether you're an employee or just a big big fan... you're not doing them any favours.

    I hope the above examples have demonstrated that we can provide a fair market price with the added bonus of potentially getting it for $1. That is our aim.

    We understand that the chance element may not be for everyone. If someone doesn't see value in potentially getting something for $1, then it's perhaps not for them. But if you're not paying a premium to have a go, then why not?

    What we're offering isn't considered gambling in the traditional sense, because the results aren't random and because you can't really lose - worst case you end up with a great product which you've chosen at a fair price. Best case you get it for $1.

    We're an Aussie start-up with what we believe is a good idea - and the first in the world from what we're aware of being done this way.

    The feedback we've been getting from a number of people in the industry is that it's an innovative approach to helping drive online retail revenue to Australian businesses. People are getting on and having a go which is great to see.

    We'll continue to take feedback on board to fine tune the model and communicate the concept better to our customers.

    The 'recent winners' ticker on the website hasn't changed in over nine hours. Business is slow or it isn't updated live?
    I think people would be more likely to have a punt if they saw new winners popping up as they browsed.

    So to guarantee you get 1 in 10 - Every 10th has to be the winner. Wonder what systems are in place to stop employees telling their mates when the winning item is coming to the front of the queue. Yeah. I think I would steer clear of this site.

      @ Southpatt

      It's very important for us to establish trust with our customers. The Office of Liquor Gaming and Racing regulations have strict penalties in place for breaching the terms of their permit.

      Our backend system doesn't display when the next winning item is - the data is securely stored in the system and calculated in real time by our secure Ratio Engine.

    Dear Wyngle,

    I fear that any reasonable business posted/reviewed on this site is never going to get a fair review.

    It's great that you have been so responsive, but it looks like nothing will be good enough for the myriad of lurkers here who feel compelled to express the most negative opinion on any concept/business/idea.

    I am surprised that someone in this chain of comments hasn't complained that $1 isn't cheap enough..

    After reading the post (even the original one), I get Wyngle. It's unique, but not hard.

    I have been a fan of this site (lifehacker) for it's life hacks. If I wanted to argue a bargain, I'd sit on OzBargain the whole day and join the masses there who complain that cheap is not cheap enough.

    I find it disheartening to see that so many are out there to knock new ideas so freely. That is why I put my 2 cents in.

    I know I'm late to this conversation, but I would just like to add this;

    Getting value for money doesn't mean that you should buy from these sites, or that you should not.

    Only that you should do your research before you buy.

    That's what's so great about shopping online. It makes comparing prices so easy!

    BUT, my thoughts are that if your research shows that a site like this is as cheap as others, for a SINGLE ITEM, then why not give it a go?

    Would I buy from Wyngle? Maybe not, but they'll certainly be considered in my purchasing research from now on.

    I think you've missed the entire point of the Wyngle concept Angus. You can't have it both ways and get an already discounted price AND the chance to only pay $1. The point of the site is to provide value for both customers and businesses, not just for customers.

    Hi,

    It would be fair to say, that most purchases made using this business model, would be considered by most people a gamble.

    Why?

    Because you are simply buying for the only reason that you, could WIN.
    There is no other reason that you would shop on this website as you purchase most items cheaper on ebay and other online shopping sites.

    Wyngle's financial model is based on the consumer taking that risk of buying at a higher price for the chance of a WIN.

    When you buy 2 for 1 carrots at your supermarket, you were already in the shop or in a buy state, and most probably about to make a purchase anyway.

    I can't see how the Westpac Bank has allowed this model for customer gambling as a merchant. The Westpac logo used on the site is even used as advertising that this type of consumer gambling is endorsed.

    Wow, well you see new things every day.

    We are becoming so sneaky with our businesses, willing to bend any rules.

    Thats my thoughts!

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