Ganking a Deal

Shmuel Gordon, Jack Arnold and Michael Fradkin are looking to capitalize on a new twist on the old concept of online auctions with GankIt.

Image: Michael Stravato, Houston Business Journal

A group of serial entrepreneurs who have dabbled in such ventures as online dating sites are looking to hook up buyers and sellers on an online commerce site created this month.

Known as GankIt.com, the site combines elements of eBay and penny auctions. Here’s how it works: Those who like suspense can purchase a bundle of penny bids for 55 cents apiece and bid on items such as iPods, iPads and Apple computers, but those who want to purchase an item immediately can “gank” it—slang for stealing—without affecting the auction in progress.

For every bid made on an item, 25 cents comes off the manufacturer’s suggested retail price which is known as the “GankIt” price, according to Shmuel Gordon, CEO of GankIt.com. When a bid is made on a 32-gigabyte iPod Touch with an MSRP of $299, for example, the GankIt price becomes $298.75 including the one-bid discount.

The more people bidding on the item, the lower the GankIt price becomes. And, whenever an item is ganked, another one appears, so many items can be purchased while the auction is still going on.

Despite its infancy, GankIt.com has already surpassed 300,000 views and is getting praise from penny auction industry watchers.

To read more on GankIt's approach to online auctions, read the full story on the Houston Business Journal (subscription required).