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 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.

 

[SmokinJoe24]

My Feel on things.

Very Good thread....Rep added (Even though you guys are pretty much maxxed out) to Stub, nielsencl, firefly and johname.

Pricing is probably the most difficult thing in domaining in my opinion. I have had names appraised in the appraisal section here that where pegged at reg fee that I sold for mid $XXX to low $X,XXX. I no longer ask as I like dealing with a certain type of domain and price for a quick sale to business.

Lets face it the price you receive depends upon your ability to sell it to an enduser, or the endusers desire for the name.

I have also had names that I paid reg fee to low $XX for and sold for up to very low $X,XXX that were flipped for 2 to 3 times what I received. That is just business. I am far from an expert but I never cry over a profit. I just try to learn from it.

Recently I was contacted through my website from a company in the UK that wanted me to act as a buyer broker. The company wanted a name that the sellerer wanted mid $XX,XXX for. The name had an estibot of ~$800 (Yeah I know estibot doen't really mean that much but it is a referece). I saw it as a low $X,XXX two word name. Eventually I purchased the name for my client for mid $X,XXX.

Personally I liked the name but did not see it for the use that the company wanted it for. But hey they wanted it and thought they needed it, and were willing to pay up to low $XX,XXX for it. I made a very nice profit for about 3 hours of my time and made a few very good contacts along the way.

Pricing will always be subjective just like Real Estate. Personally I wouldn't give you a dime for seaside property....but I would pay a ton for a nice 5 acre homestead in the country. Supply, Demand and Desire.

Whenever I approach an enduser about a domain I always list a BIN price and willingness to entertain an offer. I also make a referece in my email and my website that I accept 70% of all offers.

If an enduser approaches me about a domain I expect an offer. If they refuse to make one I multiply what I want from the domain by 10 and punt. Maybe not the most professional but it gets their attention.

Hey I sold used cars for 15 years, and if I didn't learn anything else I learnt that you have to make the sale to make the money.

On another note I always email back anyone that offers me a domain. I am not really interested in buying by that method but I am interested in making contacts from domainers worldwide. It never hurts to have a friend in any aspect of the domaining world.

Everyone thanks for sharing.

 

[nielsencl]

Joe: I would buy a used car from you. Rep added.

 

[alien51]

I have more than 400 domains in my portfolio. But i'm not a domainer in the sense that i don't collect names just to trade them. I am in the domain development business. When i buy a domain, i buy it based on my rough estimate on how much "potential" income i can get from monetizing that domain when i develop it.

Having said that, when someone emails me asking me how much is my domain, I give them an "enduser's" price, not a domainer's price.

So the advice here saying 'don't be stupid, take the $500 bucks and reinvest it in 3 more domains', doesn't work for me.

If you are annoyed that my price is too absurd for you, i'm very sure i won't regret it if you walk away and never come back.

It's not being arrogant. It's just that i know what my price is, and i know i can recover my own asking price if i monetize that domain myself evenif there are no buyers. Because otherwise, I wouldn't have picked-up that domain myself in the first place if that domain has no development potential to me.

 

[nrmillions]

dont ever name the price first if someone emails you wanting to buy your domain. if it is for one of your best names just tell them its not for sale. if they end up being a large company with a large budget they will want to buy your name whether you say its for sale or not and if its not for sale they will be prepared to pay much more.

 

[nayfeee]

Another newbies suggestion for you here. I like you am quite new to this whole business and have recently sold my first few domains, nothing major but enough to give me a taster and make me want more.

From what I've experienced I think you should always have a price in mind before seeking out end users and don't be greedy- I know I have scared atleast a few people off by pushing my luck and asking too high.

I recently sold a domain I bought for a few dollars. I contacted a number of potential buyers and got a response from one asking my price. I asked for approx. $300 and they immediately agreed. Part of me wishes I had asked for a lot more as I could soon tell they desperately wanted it. But at the end of the day I made a great return which has allowed me to look around for a few more domains to sell- and I know the buyer will put it to good use.