poll Did domain prices go down market-wide lately already, due to low sales?

[twiki]

Not necessarily if you are personally lowering prices. But if you think the market did reduce prices overall already.

It's probably not a good idea - in my opinion - to (ever) reduce prices.

With domain renewal prices and high auction buy prices currently, all you get will be losses by reducing price; also since sales are more scarce.

But some sellers will reduce prices in hope of a sale.

 

[NickB]

Seen quite a few examples of lowered prices, the auction/aftermarket prices are still ridiculous....

I'm not lowering anything...was going to start a thread asking what peoples plans where in 2023 regarding pricing but you nailed it......don't be lowering prices on a hope and prayer that something will sell

 

[twiki]

Seen quite a few examples of lowered prices, the auction/aftermarket prices are still ridiculous....

I'm not lowering anything...was going to start a thread asking what peoples plans where in 2023 regarding pricing but you nailed it......don't be lowering prices on a hope and prayer that something will sell

Yeah, well it's simple. With discounts, the math doesn't check out.

But I'm still curious what the market "a la large" is doing, where sellers might not all be educated investors.

 

[DrJacoby]

I'm raising prices on my keepers, and liquidating the rest.

 

[Reallybigidea.com]

I'm raising prices on my keepers, and liquidating the rest.

Same here

 

[karmaco]

Have seen prices lowered on non com names bigtime. Com prices seem to have gone up in some cases.

I think alot of people are finding out the one year plan doesn't cut it for the times we find ourselves in. I see other domainers getting great names from others easily for peanuts.

I see xyz’s and co’s related to the metaverse dropping like crazy. Peoples over speculating from last year is coming to roost.

We are in a course correction era where smart domainers are renewing the keepers years out and letting the fluff or the uncertain go.

Added to the rising cost of renewals, many are bound to be more selective with what they decide to keep. I think that is in play as well with price reductions.

 

[Alop]

Gradually decreasing ofc

 

[phaethon]

Gradually increasing ofc

@twiki I see you are dropping loads of names, but TBH I haven't seen not even one I would be interested in.

 

[twiki]

@twiki I see you are dropping loads of names, but TBH I haven't seen not even one I would be interested in.

Offtopic. I see no connection to the subject of this thread.

 

[phaethon]

Offtopic. I see no connection to the subject of this thread.

Indeed. Its just that your thread seems a bit absurd. 'Decrease price' should
not be an option. Why should we decrease the price of our names when literally everything else increases?

 

[enterscope]

I believe domain prices are up overall and will continue to rise like other property assets do.

 

[okaydomains]

I see xyz’s and co’s related to the metaverse dropping like crazy. Peoples over speculating from last year is coming to roost.

Possibly, but with $1/yr fee you could easily register 1000 names and only have to sell 1 at $1k to break even. But you definitely have to drop almost all the names at the end of the year even if you made some money.

So I wouldn't interpret all these names as evidence of a failed strategy, but perhaps things going to plan.

 

[clarkemarketing]

Auction prices are up. I have been bidding on a bunch of premium 4L.com and competition is surprisingly fierce. Same with premium 3L.co - there was just a whole bunch at Dynadot a few weeks ago and I was bidding $400-$1000 each and only won a few. End user sales are definitely down, but wholesale prices haven't dropped at all which is strange.

 

[twiki]

I have all my metaverse .coms on low price right now. This is because I don't see it going anywhere anymore. They have paid dividends though so far, the lot I mean. So there are no regrets here.

Other than that, nope I'm not decreasing prices.

But again others might do and the large mass of people with very few domains and experience is what I'm thinking of, impacting the market. That's what I am trying to determine.

 

[ArielT]

Indeed. Its just that your thread seems a bit absurd. 'Decrease price' should
not be an option. Why should we decrease the price of our names when literally everything else increases?

The decrease in prices are for need of money

 

[zomainhacks]

Indeed. Its just that your thread seems a bit absurd. 'Decrease price' should
not be an option. Why should we decrease the price of our names when literally everything else increases?

So if the price of loans (interest rate) goes up you expect also real estate prices going up?

There are (too) many correlated variables to take into consideration and also a quite high degree of unpredictability. Domains may very well go up or down, it's no easy answer so far.

 

[Recons.Com]

I am not changing prices neither down, nor up. Basically, not changing is like reducing by 5-10% given the inflation.

 

[zomainhacks]

I am not changing prices neither down, nor up. Basically, not changing is like reducing by 5-10% given the inflation.

May I ask you if you will consider raising prices if the market STR will reduce to let's say 0.8% ?

 

[Digital Nomad]

If everybody would raise their prices, then end-users would have no choice to buy. It is unfortunate that players like hugedomains and buydomains have such low prices, they buy in bulk and want to sell fast, I get that. But the domain industry is weird, all sorts of prices all over the place, but if there was a minimum high price especially for premium names I think the industry would benefit as a whole. I will not lower my prices, as a matter a fact I have raised most.

 

[twiki]

So if the price of loans (interest rate) goes up you expect also real estate prices going up?

There are (too) many correlated variables to take into consideration and also a quite high degree of unpredictability. Domains may very well go up or down, it's no easy answer so far.

In my country real estate prices are going through the roof while sales are going down.

Something gonna break but knowing history, it's not going to break soon.

Not the same with domains though. Nothing predictable here and in fact current moment is unique in domaining history in my opinion. So we will have to see.

Poll answers seem mixed so far which is pretty much in the line with what I expected when posting this.

 

[Recons.Com]

May I ask you if you will consider raising prices if the market STR will reduce to let's say 0.8% ?

Probably not. I suspect, the industry wide measuring stick of 1% is already probably in 0.7-0.8% range.

I wouldn't because: first, it is an administrative work. Changing prices for 23000+ names takes time. Automation isn't simple either, as each name is unique.

Second, there is no known research so far that would indicate how price elasticity for domains work. Basically, will reduction of price by 20% give me over 20% extra sales (plus, cost of restocking) or not. If I had such a data (which eventually I will generate myself), I'd reduce regardless of the market situation. As, for a business, the goal is to maximize revenue overall, not from an individual sale.

 

[twiki]

I had my own price reduction formula that worked great for a few years for my names.

For some reason it stopped suddenly about 1 year ago and something. Grinding halt. Hard to say why but I guess its pandemic and SMB related.

Now reducing price actually seems to hurt sales instead of helping.

My current assessment is that lower end SMB sales are much more affected by low sales in comparison with high end names.

 

[Beezy]

Some people are trying to steer narratives with little or no evidence to back them up.

 

[Recons.Com]

I had my own price reduction formula that worked great for a few years for my names.

For some reason it stopped suddenly about 1 year ago and something. Grinding halt. Hard to say why but I guess its pandemic and SMB related.

Now reducing price actually seems to hurt sales instead of helping.

My current assessment is that lower end SMB sales are much more affected by low sales in comparison with high end names.

Automatic formulas won't take into consideration the psychological aspects. And I don't mean $xxx sales, as I am not interested in those types.

E.g. changing price from $2500 to $2600 could reduce the sales by more than the 4% increase, as people could perceive anything above $2500 cutoff as too expensive. Or, vice versa, 4% reduction to $2400 might not move the needle at all, as it might seem the same to them (either too expensive or still affordable). There is no way to know until proper synced A/B tests on a mass scale. I will get to it eventually, but right now it is not a priority. I'd probably be interested to test $1950 vs $2500 vs $2950 in particular, as sub $2k and sub $3k seems to be the other psychological barriers. If I discover any change in sales beyond the circa 20% +/-, that could be an incentive to change pricing.

 

[.X.]

Some have , and their are some pretty nice drops happening too , I have yet to see any significant price drops though .