question Is there a "Sweet Spot" price that seems to work best for you?

[Dane]

Hi guys.

For those who make a good amount of sales, is there a particular price that seems to work best for you?

Obviously pricing depends on the name, of course. But have you noticed a pattern over time? Any particular price-point that seems to be the "sweet spot" for potential buyers?

Thanks...

 

[Dane]

Anyone ?

 

[Stego]

I don't have much experience, but it depends on the name and the end user.

For example, a GEO niche domain, let's say for example for a car dealership, a sweet spot is $500-$1000. These guys don't have that much to spend on a domain.

For a startup company, a sweet spot is $2000-$5000.

Reserve anything more than $5000 for a domain you think a big player end user would want.

Again I am a newbie, so maybe someone else can give their thoughts.

 

[Bob Hawkes]

This is a great topic, thanks for starting it @Dane.

I don't have a lot of direct personal experience. It seems to me that there might be several levels:

1. A solo person company or use - say one person part-time Shopify store
2. A very small startup (few people) without significant funding
3. A startup with seed funding
4. An established business, even if small, renaming
5. A big business or one rapidly growing and well financed

For (1) I actually think resistance past $500 or so
For (2) probably keep under $2k
For (3) $2k - $5k maybe bit higher
For (4) $5-$20k occasionally more
For (5) no real limit

Maybe @JudgeMind or @blogspotter might provide input? They both have had a lot of success and think about pricing levels, I know.

-Bob

 

[JudgeMind]

I have found there most definitely is a sweet spot price specifically for buy it now priced names.

The “sweet spot” is the price point or price range that seems to convert most buy it now listed domains to sales. I believe this pricing specifically targets the “impulse buyer” or the buyer that has a budget range and the domain is priced within their budget.

For a few years I have found pricing $1988 - $2488 has been the best converting price ranges. During this slow economic time, it seems many buyers may have tightened up their budgets and so I’m seeing more sales in the $999-$1499 price range. Upgrade domains, where buyers are looking to upgrade from an alternate domain extension seems to be $2500-$3500 right now and of course higher depending on quality.

 

[Dane]

I have found there most definitely is a sweet spot price specifically for buy it now priced names.

The “sweet spot” is the price point or price range that seems to convert most buy it now listed domains to sales. I believe this pricing specifically targets the “impulse buyer” or the buyer that has a budget range and the domain is priced within their budget.

For a few years I have found pricing $1988 - $2488 has been the best converting price ranges. During this slow economic time, it seems many buyers may have tightened up their budgets and so I’m seeing more sales in the $999-$1499 price range. Upgrade domains, where buyers are looking to upgrade from an alternate domain extension seems to be $2500-$3500 right now and of course higher depending on quality.

Nice. Thank you @JudgeMind!

 

[A1EX]

I list at $2500, usually with a "make offer" button but the fact that these company's now are offering financing for like $100/mo makes spending a little more much more appealing to the buyer.

 

[Dane]

I list at $2500, usually with a "make offer" button but the fact that these company's now are offering financing for like $100/mo makes spending a little more much more appealing to the buyer.

I'm trying to move away from "Make Offer" on most names. I would prefer if Dan had a "Contact Seller" button option, but they won't add one... so I'm wondering if there's a particular price (the "sweet spot") that might help with impulse type of sales. I'm sure there are some major players out there that have analytics on this type of stuff, so I'm checking to see who might be willing to share.

 

[A1EX]

I'm trying to move away from "Make Offer" on most names. I would prefer if Dan had a "Contact Seller" button option, but they won't add one... so I'm wondering if there's a particular price (the "sweet spot") that might help with impulse type of sales. I'm sure there are some major players out there that have analytics on this type of stuff, so I'm checking to see who might be willing to share.

I feel like they wont ever put a contact seller button due to the fact that the seller might say "I can knock $500 off if you pay me through paypal" or something along those lines and they would lose all commission.

 

[Dane]

I feel like they wont ever put a contact seller button due to the fact that the seller might say "I can knock $500 off if you pay me through paypal" or something along those lines and they would lose all commission.

But all communication would be done via the Dan chat system, so Dan would have a record of it. Anyone caught doing it could be banned from Dan. Besides, if a seller really wants to do that, they can already do it today, once a dialogue is started between the buyer and seller. The reason why I think it would help is because I know for a fact that some potential buyers have questions, or they're apprehensive about the transaction. They might not feel comfortable submitting an offer before getting those questions answered. And frankly, I'd rather not show the buyer that I'm willing to accept an offer right up front (and in some cases, I'm not -- but I'd still like them to be able to contact me). So FOR ME, having a "Contact the Seller" button would lead to more sales through Dan, not less.

 

[Bob Hawkes]

By the way the analysis that @Ostrados is doing on how sell-through-rate varies with BIN pricing is relevant to the topic of this thread. While he currently only has data from open sources, he is encouraging NamePros members to fill out an anonymous survey how how many domain names they have listed in various price bins, and how many sales they had in 2021 and 2022 in those same bins. Read more, and get the link for the survey, here:
https://www.namepros.com/threads/domain-optimal-pricing-research-np-survey.1292660/
-Bob

 

[blogspotter]

There is indeed a sweetspot pricing for ever domain name in a particular bucket.

Some domains will do great in in 1999, some in 2499, some in 2999, some in 4999, some in 9999 and so on..

You simply need to figure out where to put a particular bucket.

Lots of hit and trial, lots of data and lots of intuition I guess

American Buyers tend to find it easy to spend 1999-2999 while European buyers like 799 - 1499

Anything lower and it seems to not increase sales enough to offset the decrease in STR.

But Domain Quality is just something only we deeply care about

I find that price has a lot more to do with the Buyer Persona than the domain quality.

A buyer isn't going to look for CPC, SV, TLD taken, Linkedin and so on. Which explains the high 5 and 6 fig sales of xyz and .io, because all the buyers have access to capital fairly easily.


So depending on target buyer, Ii would set the price and for low quality names with no particular target in mind, i would put a blanket 1999 for best STR * sales, and for low quality names that target lucratrive niche, I would put 4999

 

[Bob Hawkes]

American Buyers tend to find it easy to spend 1999-2999 while European buyers like 799 - 1499

Anything lower and it seems to not increase sales enough to offset the decrease in STR.

Thank you for very complete answer @blogspotter – very interesting to think about different regions may well have different 'sweet spot' pricing.

Many aspects to think about as you note. Your success in listing and selling lots of names over last few years makes your input particularly valuable.

Thanks again,

-Bob

 

[NYJimbo]

"... and for low quality names that target lucratrive niche, I would put 4999"

$999 ?

 

[blogspotter]

$999 ?

I said lucratve Niche, low quality. $4999 not $999

 

[blogspotter]

Those are just my opinions. YMMV

 

[GoKaizen]

Useful, thanks for sharing.

I have found there most definitely is a sweet spot price specifically for buy it now priced names.

The “sweet spot” is the price point or price range that seems to convert most buy it now listed domains to sales. I believe this pricing specifically targets the “impulse buyer” or the buyer that has a budget range and the domain is priced within their budget.

For a few years I have found pricing $1988 - $2488 has been the best converting price ranges. During this slow economic time, it seems many buyers may have tightened up their budgets and so I’m seeing more sales in the $999-$1499 price range. Upgrade domains, where buyers are looking to upgrade from an alternate domain extension seems to be $2500-$3500 right now and of course higher depending on quality.

There is indeed a sweetspot pricing for ever domain name in a particular bucket.

Some domains will do great in in 1999, some in 2499, some in 2999, some in 4999, some in 9999 and so on..

You simply need to figure out where to put a particular bucket.

Lots of hit and trial, lots of data and lots of intuition I guess

American Buyers tend to find it easy to spend 1999-2999 while European buyers like 799 - 1499

Anything lower and it seems to not increase sales enough to offset the decrease in STR.

But Domain Quality is just something only we deeply care about

I find that price has a lot more to do with the Buyer Persona than the domain quality.

A buyer isn't going to look for CPC, SV, TLD taken, Linkedin and so on. Which explains the high 5 and 6 fig sales of xyz and .io, because all the buyers have access to capital fairly easily.


So depending on target buyer, Ii would set the price and for low quality names with no particular target in mind, i would put a blanket 1999 for best STR * sales, and for low quality names that target lucratrive niche, I would put 4999

 

[Namingfy]

I would prefer if Dan had a "Contact Seller" button option, but they won't add one...

DAN has 'PR - Price Request' option. That should do the job of "Contact Seller", I believe.

 

[Dane]

DAN has 'PR - Price Request' option. That should do the job of "Contact Seller", I believe.

Not really, because that requires us (the seller) to send a price to the buyer first, before any messages can be exchanged. Not the same thing.