The best thing about penny auctions is that you can get free bids many times and sometimes you can even win items for free. I have seen people walk away with items that they did not even have to pay for because they used free bids and so then basically they won their item for free the only thing they had to give up was a little bit of their time.
My favorite thing about penny auctions is when you win a high priced item that you were targeting and you beat your opponent down to his last bid. This is the best feeling because you know that you have won the battle and that he will not be back around when he sees that you are bidding. This is how you can begin to dominate the competition because people see your name and realize that they are up against a serious experienced bidder and that if they are going to challenge you then it's going to be to the bitter end of zero when you run out of bids.
There is no getting around competition with penny auction sites, the only thing that you can do is destroy your competition by not giving up and holding your ground. Many people have said that if you wait until the timer hits one second that many times you can steal the auction and win it by way of computer glitch. I have tried this several times but I cannot say that I ever saw results from it. I wish it were only that easy! Some people even stay glued to their computer for hours on end on into the wee hours of the night just to win that one item that they are after.