Well curiosity got the better of me. I signed up for guns4pennies.com, wow. This site charges from .90 cents to .68 cents for each bid. You can buy 50 bids for 45 bucks, to 1000 bids for 680.00 dollars.
So an item that finally sells for 1.70 they make at minimum 115.60 dollars plus the 1.70.
Most items are going around 20-60 bucks, so that means they are making 1360 to 4080 on each auction.