discuss Calculating (fair) Wholesale Prices

[Way3]

I thought in the interest of discussion, I would post links to several guides to wholesale pricing strategies. I've notice a tendency to undercut pricing (on both the part of the seller and the wholesale buyer) and, well, please do your research before agreeing to a price.

The basic calculation for wholesale pricing follows this formula:

• wholesale price = cost of sales + (cost of sales * wholesale markup percentage)
• retail price = wholesale price + (wholesale price * retail markup percentage)

Of course, that's more straightforward then domain sales might allow, as 100 domain sellers will have 100 prices for the same domain name. But you should definitely keep in mind that your wholesale price should include not only the cost of the domain (to you when you obtained it), but also your cost to hold that domain, as well as any overhead costs (for domainers that might be your monthly fee for landing pages, domain hosting if you've had a website on that domain, etc). Also, your own time and research should be included (your hours spent matter!) but be reasonable.

If you think your domain has a retail price of $1500, then your wholesale price might be ~$250 - this will depend on your markup percentage, domain value, age of domain, and the like. And it's always possible that a brand new domain might have much more than the typical retail value, if it's a trending keyword or a newly interesting phrase (i.e. OkBoomer). If you have to explain the import of your domain name, then imo it doesn't fit into this category.

Now, if you have a domain that is of little interest to anyone, then a buyer should just walk away, but if it is of interest then take the time to price your domain for a fair wholesale value.

We all have big dreams, nothing wrong with that. But on the wholesale side, prices will be lower. Then again, don't sell yourself short.

Some wholesale pricing links (generalized applicability as they deal with traditional retail products):
https://www.erplain.com/en/blog/wholesale-pricing
https://www.shopify.com/retail/product-pricing-for-wholesale-and-retail
https://www.etsy.com/seller-handbook/article/how-to-price-your-products-for-wholesale/36611398865

 

[lock]

What ever you will part with it from forum is the fair price. I see domainers selling everything aquired at $20. All about finding stratergy and how you handle an actual enquiry.