You buy bids and then bid with those - that explains the phenomenal prices. Bid increments are small, but you pay for them in advance. That's how they manage to pay for this stuff and then make a profit, too. There's another company that does run of the mill auctions with this system, I hadn't heard of this one before.
If you lose an auction you can take the value of all your bids and apply it to the retail purchase price of the gun by using the buy it now box. So if you really want something you dont have to much to lose.....if you don mind paying retail.
Penny auction sites are 99.9% scam sites. I'm amazed budsgunshop is running one (and yes I know they're in different states but they've "partnered" with buds - so they might as well be the same entity IMO).
I'll check it out at some point, but I'm staying away for now I want to see how it shakes out