How to reply to "Whats your price?"

[pjb1978]

Hi all,

Wondering if anybody can provide some guidance on how to reply to a potential end-user when they ask "How much for that domain?".

Being new to domaining, I don't have a lot of experience with pricing and such, so is it better to put the ball in the end-user's court and try and have them make an offer? To be honest, I've had a tough time getting any sort of reply in the Appraisals forum, and I know I'm not able to rely on estibot.. so I'm in a bit of a bind.

How often do you lose potential end-users by telling them to make an offer?

Any help would be appreciated.

Thanks,

Paul

 

[Name Trader]

I usually reply with a price, if they ask for a price. That way you cut out a lot of the time-wasting low-ball offers. There is a theory that you should never go first with the price, but I don't subscribe to that theory. I have also learnt to always ask for more than you want in order to allow room for negotiation.

 

[biggie]

Hi all,

Wondering if anybody can provide some guidance on how to reply to a potential end-user when they ask "How much for that domain?".

Being new to domaining, I don't have a lot of experience with pricing and such, so is it better to put the ball in the end-user's court and try and have them make an offer? To be honest, I've had a tough time getting any sort of reply in the Appraisals forum, and I know I'm not able to rely on estibot.. so I'm in a bit of a bind.

How often do you lose potential end-users by telling them to make an offer?

Any help would be appreciated.

Thanks,

Paul

if you're worried about losing sales when asking for offers, then you'll most likely underprice to get one.


no one will pay you what you want, if you don't ask for it


when they walk, sometimes... they come back later



but in the end, a price will have to be agreed on before a sale is made.

 

[andis]

"How much for that domain?" of course depend on the name of the domain + traffic + PR, etc

 

[pjb1978]

"How much for that domain?" of course depend on the name of the domain + traffic + PR, etc

I guess I should have been more clear. I'm not talking about one particular domain. I didn't post this looking for an appraisal. My question refers to when you have a domain for sale for 'Best Offer', or 'Make an Offer'. My recent experiences have been that people either don't seem to read the 'make an offer' part, or ignore it because they are scared they would be offering too much.

Thank you for the replies guys.

 

[johname]

My recent experiences have been that people either don't seem to read the 'make an offer' part, or ignore it because they are scared they would be offering too much.

Buyers dont want to be the first to set a price. There hoping the seller needs money and has the name on a super discount. Why offer someone $500 when they might all on there own say they will take $40. Also are you talking about a cold call email to you, or them responding to a for sale page. If it's totally a cold call email you can act like you never thought about selling it and you will listen to their offer. Many people will email back and forth until one person finally throws out a number. Eventally you figure out a value you must have for the better names you own or you would rather keep it. This helps you come up with a price. Over time you also figure out your lesser names and you roll them for what ever you can get.

 

[rmg]

If you have experience in the domain market you will know what price to ask. Being a newbie if you receive a specific offer the best move is to ask for help here @ NamePros :tu:

 

[Erdy]

...when you have a domain for sale for '... 'Make an Offer'. ... people ... ignore it because they are scared they would be offering too much.

There is another reason which I have come across many times: Some people counter offer with crazy prices like $8000 for a $100 USD domain.

It happened to me a few times. I feel annoyed with domain owners who ask for absurd amounts. Before I make an offer, I need to have some idea that the domain owner is normal and not some stupid crazy idiot who is going to make me very upset. For instance if I know prices of other domains he has on sale or prices of domains he sold, this will give me a clear idea. He doesn't need to give me an exact price. All I'm looking for is a clue that the person is not an idiot.

I came across to domain owners who insisted that I should make an offer and I insisted that they should give a price. I contacted them two, sometimes three times asking for price and they refused and I gave up. I will not make an offer until I know the seller lives on this planet.

 

[nielsencl]

This is a problem most of us struggle with mostly because we know some domains purchased for $10 can sell for thousands of dollars. We don't want to admit that this does not happen very often. But we risk making a sale by putting out a very high price. After all, we can always come down, but once you state a price you really can't go higher without losing a sale.

What's your domain worth? If you really don't know and can't tell from other domains like yours, use Estibot, but treat the number it gives you like this: If you find an end user, then they may pay the Estibot price IF they must have the domain AND they can afford to pay that price. Chances are you will have to sell the domain for less, but at least that way you will start much higher than the "wholesale" price of the domain, and have a better chance to get the full market value for the domain.

The other option is to not use Estibot and just set the price range this way:

a) What is the lowest price you will take for the domain?
b) What low price would make you happy about the sale?
c) What is the lowest price would make you jump for joy and call your mom?

Once you can answer these questions you are ready to negotiate with confidence, because you know what you have to work with.

Now you need to understand your buyer with these questions, if you can answer them:

1) Did they make an offer, no matter how low? If yes, then they are serious about the domain. They may only be able to pay what they offered, or they may be seeing if they can get something for nothing. You are protected by your lowest price. If you can't get that, you don't sell. If you learn later that you could have gotten more, well that's how we learn and next time will be different. You still got your lowest price that you decided on to be ok. Don't regret the big fish that get away, you will only lose sales later.

2) Who are they? Are you talking to the buyer or a web design company looking for a domain for their client? Is it a small company or big corporation? Are they in the US or Nigeria? Check their IP address, email domain, phone number, and anything else you can find. Knowing your buyer will help you to know your prices.

You may want to try this: Don't be the seller. If a client, spouse, or friend owns the domain, you can act as the broker and will be able to negotiate better. You can "help" the buyer with the purchase process, but make sure they know you will be working for the seller. This will make it easier for you to ask for an initial offer from the buyer. If you don't get one, you can tell them that the starting price may be very high, since they are not interested in selling at this time. A serious buyer will give you a starting price, even if it's low. Then you can start with the negotiations.

Tell the buyer to go to buydomains.com or sedo.com to get an idea of what they should offer. If they ask you, you can give them a range of your middle price and high price, but try to get them to find out from other sites as those prices are almost always crazy for good domains.

Offer to take payments if they think the price is too high. You can change the nameservers to theirs and let them use the domain while they make the payments.

To summarize what I think about pricing:

- Use Estibot to get a maximum price and figure you may get 25%-75% of that when a deal is made.

- Set your bottom line or lowest price in your mind so that you never sell for less than your lowest amount.

- Set a midrange amount that you will feel good about which is your goal.

- Set a maximum amount that would make you very happy, but keep you from feeling like a criminal.

 

[Erdy]

Here is another suggestion:

Be the guy who prices reasonably, makes a profit and reinvests. Don't be a weird idiot who enjoys annoying potential buyers with crazy numbers. Reinvesting and growing your portfolio should be the focus. This is not a competition on getting the absolute maximum for each of your domains. Time is an important factor. If you sell a domain for 500, take the money and reinvest in 3 good domains, you are better off than still trying to sell the first domain for 800 after a year.

 

[Debt.tv]

If you have a price in mind that you think your domain is worth, go to namebio and see what similar domains went for. If you find one that is comparable to your domain, go to google adwords and check it's keyword stats compared to the domain you own.

Lets say you want $1,800 for your domain. Go to namebio and find domains that sold for $1,800 and check their stats.

You need to have an understanding of what else the buyer can get for their money.

Another thing you can do is show comparable sales to strengthen your asking price.

Enjoy,

Eric

 

[domainhustle]

I am really starting to lean toward erdy's advice on this topic. I know that you can look at comps at namebio and even use them to help your asking price but at the end of the day I think it is better to get a sell and compound into reinvestments.

For me I think determining a price to quote is best determined by 3 factors

1. Are there any comparable sales to look at and if so how recent are they? We are not in the same economy now as some historical sells will indicate.

2. Who am I dealing with: is this an end user or a broker for one? because there is a big difference between a webdesign firm looking for a client's perceived value and an end user actually participating in business related to the domain.

I also think there is something to be said for closing deals because the only way to get experience selling is by selling whatever commodity.

 

[Yeodo]

A buyer would expect you to know what the domain is worth and why its worth that.

You can use estibot etc but also get free appraisals on namepros and research age and previous similar domain sales.

Anything you get over your buying price surely has to be a bonus, buy beware of letting a great domain go for too low a price.

I tell a buyer what I think the domain is worth and ask them to make an offer. I think theres nothing worse than enquiring about a domain and getting the reply " make me an offer " without a guide price. I think its unprofessional.

If they want a fixed price I would fix it at a level i believe is reasonable for the domain.

If they dont mail you back you can always go back to them in a few weeks with a lower fixed price.

Ive sold potentially $xxxx domains before for $150, in retrospect I wish I had held out for other offers, though both were purchased for around $20 so theres always more domains to be found.

 

[HeatherWhite]

You can appraise your domain first. Paid appraisal is much better. Then compute your traffic, PR, etc...

 

[biggie]

You can appraise your domain first. Paid appraisal is much better. Then compute your traffic, PR, etc...

the only people who say paid appraisals are better, are those who sell appraisals





ask 100 different people about the value of your domain and you will get 100 different opinions

so you may as well make-up your own price and let it "ride or die"

 

[snicksnack]

many times, these offers or requests are scams! They ask you to provide a certiticate of value... Don't fall for it

 

[oberheimer]

If they ask you for a price then it's their advantage...
So i would reply make an offer, if they really want it they have to
and if it's way to low you can allways ignore and hope the will make a new offer that is higher.
And if you tell them a price and they agree you never know what you could have gotten...
Just make sure you have the advantage in a deal, you don't want to sound to eager to sell
Point out whats so good about it and why it's so good for them

 

[Erdy]

So i would reply make an offer, if they really want it they have to

I disagree. I walked away from 3 domains because the owner insisted I should make an offer even after emailed him a few times. It is just too illogical that something is for sale but they can not give me a price. Have you ever seen anything like this in the property industry? I don't think so.

If a domain is worth €500 I can list it for €750 and still allow buyers to make an offer. This is a nice feature of sedo. The "make offer" option lets you display a price. It looks like this: http://i53.tinypic.com/35incyv.gif

 

[Name Trader]

I think it's really unprofessional if somebody asks you a price and your response is "make me an offer".

On the very few times I have inquired about a domain and got a "make me an offer" response, I always lowball. Why? Well because the seller has no idea how much his domain is worth. So why highball? Sometimes even after giving them a price, they say "make me another offer". At which point I move on, because they guy isn't serious about selling his domain.

If I get a request for a price, I always give them a price which is higher than I'd accept because you will always be negotiated down. On the few times I've stood firm on my price I haven't sold the domain. You have to be flexible on your price, imho. Hence a price higher than I really want. Giving a price straight up weeds out the lowballers immediately.

 

[nielsencl]

The whole "What's your price"/"Make me an offer" dance is a real problem and I don't know what the answer is. I struggle with it quite often.

The main problem is that most of us don't have a price on our domains. We can't "know what it is worth" because that is not a set amount. It's mostly subjective.

I don't have my domains listed with a price, but that doesn't mean I won't sell them. It just means I don't "need" to sell them. So what is my price? That depends on:

- What I think the future potential is.
- Traffic and income from the domain.
- How much I "like" the domain (Bad, unprofessional, but there it is.)
- What can the buyer afford. Someone told me my price should not depend on who the buyer is, but I just can't accept that. I will sell low to someone with limited means and a real "need" for the domain. I will sell high or maybe not at all if some company comes along.

Those that offer once and then go away don't seem to me to be "serious" just as they say the seller isn't. It's the same thing. If you don't want to play the game, then don't. But I think if you let your EGO become involved you are going to get PISSED OFF and not be able to make a deal.

To me, the lowball offers and highball prices are two sides of the same coin. When a domain doesn't have a price tag and you ask for a price, you shouldn't be surprised when asked for an offer. THERE WAS NO PRICE ON THE DOMAIN TO START WITH...! You want the domain, then make a damn offer or stop bothering the owner.

If YOU don't know what the domain is worth, why should the seller?

If you do know what they domain is worth, then make an offer that reflects that. Don't offer $5 for a $500 domain. Offer $50 or $100. If you think your seller is a domainer, you would show some respect by offering maybe $250 for that $500 domain. The closer to the value your offer is, the more seriously your offer will be treated unless you are dealing with a newbie.

I think most of you don't want to pay near the "real value" for domains. I know I don't and that is why I buy all of mine at reg fee.

 

[Name Trader]

I normally agree with everything nielsencl posts. But I'm not sure about his last post. Almost every point I can either agree with or take issue with. I never lowball in the $5 area. It's always $20-$50. All I'm doing is trying to get the seller to name his price. If he doesn't come back with a counter offer, I move on.

Just yesterday I paid $300 for a domain which was my first choice for a domain I developed. I won't be changing my website to the new name though. I bought it just for protection only. Estibot value $50. The original owner wouldn't sell me the domain below $650. But it seems to have changed hands and the new owner only wanted $300 for it. Presumably they made a profit on it. I consider $300 to be the end-user price for this domain. The domain I'm currently using was $200+, so I think $300 was a reasonable price for my first choice domain.

The above example is for a domain where I am the end-user. Mostly I'm a reseller, so I expect to pay reseller pricing only for most of my purchases.

 

[nielsencl]

Thanks Stub, but I don't mind if you disagree with me. I can certainly learn from others and respect opinions even if I can't agree with them. As I said I have been struggling with making sales and you may understand my problem...

Your story was interesting, because that is exactly what I have been talking about. A $50 Esibot domain most will think is "junk". But any domain can have value if the potential buyer thinks it as, or feel they need it as you did.

One of my friends asked me to help him get a domain that the owner was asking $12k for and he was firm about the price. I came in with a story and got the seller down to $10.5k. I thought I did an awful job, but my friend was super happy that he didn't have to spend $12k for the domain. He was also buying for "protection", but is shifting his site over the the new domain.

Let me ask this question to everyone: Has anyone ever gotten an offer from someone for a domain and thought the offer was really, really nice? Did you then tell the buyer they could but the domain, but for a little less money?

I have done this at least once. Why? Am I nuts? No, while I like money, I also like people to feel good about doing business with me. If i can reduce my price and make them happy while still getting a nice profit, why not do it? If you want people to talk about your business to others, having them feel good about you is the way to do it.

I have also contacted people in the past to let them know a domain with their company name, or in one case, there actual name (she was a blues singer) was available after a drop. I found out about a person or company while researching the domain. Sure I could have regged the names and hope they come crawling, but they would not have paid much and the satisfaction I got from a phone call or email was worth the effort it took.

 

[Name Trader]

Did it work? Did they talk about your business to others? Did you get any more business from anyone by selling lower than the buyers offer price? I think you were nuts to accept less than their offer price. But I applaud you for your generosity with the blues singer.

 

[johname]

I never took less than the offer, the nice thing I do in those circumstances is not bump it up and pay the escrow fee myself. (I think thats nice enough lol)

As far as alerting someone that a name is available, I did that in the past but not anymore.

 

[firefly]

I always try to get them to name the price first. In my reply email to a sales question I point out the fact (very politely) that since they have contacted me, that they obviously have an idea what they are willing to pay for a name. I ask them to send that and that we will work it out from there.

In all cases I have been pleasantly surprised with the offers I have received. Maybe I have been lucky in these cases, but each time I have received an offer beyond my actual expectation for the name.

A buyer will be willing to pay what he he/she thinks is needed to acquire the name at the end of the day. Obviously resellers are different and I have been lucky that the sales I do make are usually to end users.

That's just my method and I find a well worded email will usually reveal a price.

Like I said...just the way I do it.