Asking price VS realistic sale

I support my asking price with comparables (both for sale, and sold) and won’t sell the domain too much below what I value it at.

As far as my sales method/technique (“pitch”), that’s a very personal thing and what works for one salesman might not for another.

xynames said:

I ... won’t sell the domain too much below what I value it at.

Click to expand...

too much is... like 10% ?

You have to decide all that for yourself. Like I said what I do or another does might not work for you. Others might not even value a domain the same even with the same data.

xynames said:

I support my asking price with comparables (both for sale, and sold) and won’t sell the domain too much below what I value it at.

As far as my sales method/technique (“pitch”), that’s a very personal thing and what works for one salesman might not for another.

Click to expand...

"FOR SALE" YOU MEAN,ON what price similar or alternative domains are listed.
mean your selling "redcar.com" there are to domains whitecar.com for sale 2k$ & blue car.com (4k$) what will be your pricing strightgy

There's a whole Ball-game in domain pricing and selling to end-users. Though in selling to domainers it's stripped right back to the basics - usually being mostly just the domains liquid value
As xynames has pointed out it's mostly down to what the "unknown" Real maximum of the potential buyer and your own skill-set in identifying that parameter whist keeping a realistic understanding of what the market would tolerate.
If your just listing as for sale, your always likely to over-value. If someone is willing to approach you knowing full well what your expectations are, (listed price) then that's the time to put the groundwork in and genuinely be able to support your pricing.
in all my negotiations I really don't recall any two being the same apart from any taken at a 'Buy-Now' price. Do try to remember that most end buyers are also NOT skilled negotiators - and will walk away rather than try to enter into any deep analytical discussion.

And the basic formula is learn from your practice experience and mistakes - but better still 'other peoples' mistakes

I only do inbound sales. Pricing is always a dilemma, when you get a very low inquiry (say $0-$100) on a decent name. I soon learned that these offers were either from experienced (or not) domainers or from end-users who had no idea of the price. Mostly the former. I used to ignore them. Then I started negotiations at my reasonable buy now price (low $xk). I soon learned this was a mistake. My pricing strategy has now evolved to my present stance to usually to ask $xxK. Irrespective of my selling price expectations for the domain. It weeds out pretty much all the domainers. Who think I'm crazy. Maybe quite a lot of cheap charley end-users too. But for me it's a strategy which has worked. If someone comes back with an offer. You know they are interested to actually buy the domain. Probably not at the price I'm asking. They are not wasting your time (which is extremely valuable to me). I never sell many domains each year, in any case. But my average selling price has evolved to mid $xk. So it's a strategy which has worked for me. I also never have to spend a whole lot of time dealing with time-wasters. These are for average value domains (from say $1-2k).For what I consider my really good domains, the asking price goes up accordingly. I haven't sold any of my good domains yet. Just because this has worked for me, doesn't mean it will work for you. YMMV.

When pricing domains, you have to study comparables in that particular niche not the domaining industry as a whole. If you owned clothingshop.com and were asking $50,000 and the owner of clothingstore.com was only asking $5,000. You'll have a hard time justifying your asking price in the eyes of potential buyers.

It depends on the country. In England "clothing shop" would be better than " clothing store" Store is a bit downmarket. The comparison is a good one though.

xynames said:

I support my asking price with comparables (both for sale, and sold...

Click to expand...

When it comes to "for sale", where is good place to look? I looking at sedo for comparison, however I wonder if many of the sellers are highly delusional, setting their prices way, way too high. Maybe brandbucket are better for comparison? Others?

There are 3 major categories.
1. Liquid price of a name
2. Outbound offer
3. Inbound offer.
Liquid Price maybe 10% of something u would ask for inbound offer. It depends on the name.

BaileyUK said:

Do try to remember that most end buyers are also NOT skilled negotiators - and will walk away rather than try to enter into any deep analytical discussion.

Click to expand...

When (and how) is it best to start discuss/supporting the price I your opinion? I had some offer, and usually I try to keep it short when I answer, not saying too much. So I say how much I want (without explaining and justifying), and then get no answer in return.

stub said:

My pricing strategy has now evolved to my present stance to usually to ask $xxK. Irrespective of my selling price expectations for the domain. It weeds out pretty much all the domainers. Who think I'm crazy. Maybe quite a lot of cheap charley end-users too. But for me it's a strategy which has worked. If someone comes back with an offer. You know they are interested to actually buy the domain. Probably not at the price I'm asking. They are not wasting your time (which is extremely valuable to me).

Click to expand...

Can you say something about that ratio (asking price vs willing to sell for)? Let's say you have a domain you are willing to sell for $ 5k (minimum) or $ 2k (minimum). What would you asking price be?

Smiles76 said:

When pricing domains, you have to study comparables in that particular niche not the domaining industry as a whole. If you owned clothingshop.com and were asking $50,000 and the owner of clothingstore.com was only asking $5,000. You'll have a hard time justifying your asking price in the eyes of potential buyers.

Click to expand...

In this case what would your asking price be then?
$ 5k ?
$ 6k ?
$ 10k?

@ksusha64

can you say something about your asking price vs what you would be willing to sell for?

I'm looking for some kinda reasonable formula to state asking price. Lets say you know your are willing to sell a domain for 1k, what would your asking price be? or, if you where willing to sell a domain for 3k, what would your asking price be? or 7k ? or 15k.. etc.

context: inbound and outbound - to real end users.

DzAH said:

Can you say something about that ratio (asking price vs willing to sell for)? Let's say you have a domain you are willing to sell for $ 5k (minimum) or $ 2k (minimum). What would you asking price be?

Click to expand...

It's usually over $10k and below $15k. I only do inbound where I know very little about the buyer. And they aren't giving anything away by offering $0-$100. Which is an insulting offer. For reasonable offers, it's usually approx double their price, even if it's under $10k. But I don't think I've ever had an offer, which I've accepted immediately. Everybody low-balls. So I don't see anything wrong with playing their game by high-balling. And meeting somewhere in between

I would let the actual price range ~10% compared to asking price, I don't price my domains much higher than it's true value.

I go mostly on gut instinct, comparable sales, and whatever information I have about the buyer (industry, location, potential use for the name). I don't use a formula. Since about 80% of my sales are on Sedo, I usually have little information about the buyer besides location, but you can sometimes hazard a guess based on a who owns other extensions. The other 20% are people who email me directly, and in that case, I Google everything I can find about them, and try to decipher how badly they want the name.

It also depends on how I'm feeling that day, and how "motivated" I feel to have a sale at that time.

There is always some negotiating involved, except if a name is priced BIN. I've had well-intentioned, deep-pocketed buyers start out low. If they want the name badly enough, it will show in their responses, even when they say things like "this domain isn't even worth that much." If it wasn't worth that much, you wouldn't still be emailing me and trying to buy it.

NLP said:

Since about 80% of my sales are on Sedo, I usually have little information about the buyer besides location, but you can sometimes hazard a guess based on a who owns other extensions.

Click to expand...

With Sedo, another thing I look at is join date. If it's a new date, most likely an end user. If they've been with Sedo for years, most likely a domainer.

With Sedo, you can see the country the bidder is from. Often the bidder who is trying to buy a .com from you owns the ccTLD so you can figure out who they are...
For example, I once had a buyer from Denmark and I saw that the .dk had been registered the same day, so I knew who I was dealing with. The sale went through quite fast as the buyer was motivated and enthusiastic

DzAH said:

Do you use any formula? Let's say you are convinced you would be able to get $ 1k / 2k / 4k / 8k for a domain (based on similar sales etc.), what would your asking price be?

Click to expand...

When I acquire names for potential sale I only acquire names I believe will net / profit a minimum of 1k whenever sold and ideally a realistic 2- 3k net / profit.

Usually I price names for a 2k - 3k net / profit and am prepared to wait years for their eventual sales as I am an inbound / passive seller using mostly Buy Now listings.

So my informal formula as such is to prudently purchase names that fit my minimum net / profit profile and start off seeking the maximum range for listed comps - for example - will list a name for a couple / few years at $3500. and if unsold after that time frame drop to a $2500 range and there it sits for years awaiting it's new home.

So in essence I might then be formulating a 20 - 30% initial Buy Now price over what I might " drop to " if the name remains unsold after a few years.

And at times some prices increase as markets and comps fluctuate upwards as well as the dreaded downturns.

JB Lions said:

With Sedo, another thing I look at is join date. If it's a new date, most likely an end user. If they've been with Sedo for years, most likely a domainer.

Click to expand...

Yes, I know. Sometimes with end users, you still have to finesse them, or educate them as to why their lowball offers aren't in the right ballpark.

Usually I keep lowering BIN until it's sold.

Does someone know what is the average domain sales price?

enlightening to read that we all work to the same ol'Sedo 'available' metrics, couldn't imagine any old hand not being aware of what is to be seen. and from that a simple Google, pretty much takes you to base.

I do love this ol'game