Can high BIN scare buyers away？

[ilucky21c]

Hi,

Just want to ask, if I set high BINs, like 50000$ for each of my domains on sedo, afternic, uniregistry and many other platforms, will this scare the buyers away? The real reason why I am doing this is to lead the buyers to bid a price, and we negotiate, because sedo says that BIN setting just enhances the chance of sales for 3 times. Will BIN add exposure of domains? I set BINs for all of them, and set all the domains 50000$ or higher on other platforms, in case one of them is worth that much. I have to say, when it comes to put a price tag on my domains, I become a little "shamefully" greedy. Can't resist it~

Can experienced domainers express your opinions? Thanks for your help!

 

[Daniel Owens]

If, the point of your bin is to make it so high that you can buy a beach house in Florida or pay off your xx,xxx or even xxx,xxx mortgage than you are probably living in a dream world. Even, a high quality end-user might be scared away by a $50,000+ bin on a domain name. My, advice price your domains at a reasonable price so that people will make offers. If, it's a three letter .com you may have every right for a high bin. But, if it a two or three word .com, or low-end brandable and your expecting xx,xxx you might just be crazy.

 

[xynames]

I’ve sold two word domains for low to mid five figures. Unless you have lots of real word domains you can’t know about selling them.

 

[Daniel Owens]

@xynames That is not the norm though I've seen single world domains go for less than one-hundred dollars before usually it's something ending in able or ing, or starts with the letters non. So, my reference is that many list domains thinking they are greater than they are. However, not all two-word domains are created equal. I suggest a domainer seek other domainers advice before listing a domain for $50,000+ and that they seriously take into account what other people (domainers) say about it.

 

[xynames]

Well sure I mean you gotta do your homework and compare past sales and current offerings (comparables).

 

[maxtorz]

No, a HIGH BIN should never scare a buyer away, IF AND ONLY IF you have done your homework/research before you priced that domain.

 

[Willox Perez]

Great tips already, only thing I would add is pricing your names at reasonable prices for buy it now makes sense to get them sold quicker. If you are looking for much more on a specific domain just simply put the domain as make offer this way you can counter them to your price.

When I get a name I usually aim to make back 50 times the amount paid for the domain, 30 times the amount paid and finally worst case 10 times the amount paid. I feel these numbers are great returns on your investment and you can get yourself into the habit of selling your domains instead of holding for a higher price.

Too many times i missed on a potential sale thinking I could get higher on the name. Some names you know you should hold off but when it comes to making consistent profit selling now is better than selling later.

- Will

 

[Smiles76]

Personally I think the biggest mistake in domaining is setting a BIN and then allowing buyers to make an offer.

Imagine if this was real estate, and you set the price of your house at $500,000 with some sort of mechanism to checkout. Right next to that you put a form allowing buyers to make an offer, usually with a minimum value which is a fraction of the BIN. What would you think as a buyer? Would you think that the BIN is a real price? Immediately you think you must haggle, and that you're being conned just like tourists are when buying trinkets whilst on holiday.

I honestly don't understand why domainers, domain marketplaces and various sales platforms use this technique so much. Try setting a real BIN and not taking offers. If the price reflects the intrinsic value of the name then maybe you will sell without any negotiation. Set BIN or ask for offer, but not both IMO.

The first rule of business is that the market not seller determines what something is worth. This is why successful companies test to see what people are willing to pay before launching a product to the masses.

 

[Smiles76]

Yes - the first thing a person does when they see a high price is react and say "are you kidding me"? Rip off. Then try to seek out and find a cheap, almost identical alternative. Think of when you see an overpriced car on the lot. Or overpriced clothig / jewelry / food in a store. Same mechanics. Price a BIN accordingly so someone can buy it now quickly if it's in great demand from others prying hands. It shouldn't be a reason to jack up prices 10x more than actual worth. An end user will see a high BIN and simply go to godaddy and try to find a comparable name for $11 or even a domain hack if they have to. Only rare cases like an extremely rare domain or something in HUGE demand might let a slightly higher BIN slip by.

This is an excellent point. Most domainers never look at comparables in their field. If you're asking $50,000 for clothingshop.com and the owner of clothingstore.com is only asking $1000, 99% of buyers will choose the latter. I've seen some shocking disparities in pricing for very comparable domains.

 

[Brandworthy]

This is why successful companies test to see what people are willing to pay before launching a product to the masses.

Not sure how the example of mass market products can be applied to domains, which are perfectly heterogeneous?