Looking for some opinions

[CenterPoint]

I ran into a situation yesterday, that I have never experienced before
and would be interested on hearing opinions on what my next move should be.

Basically, over the weekend I was approached to sell one of my .CA names it is a 2 letter acronym for this Canadian Company. Apparently they wanted the .COM but the US company that owns it went bankrupt and the name is tied up in pending litigation. All other major extensions are gone.

During our discussion, we agreed on a price of USD$X,XXX.00, on Monday my lawyers received a letter of intent from the company indicating their desire to purchase the name for the agreed price.

However, before we could fax back our acceptance of the offer, I received a telephone call from my contact stating that while the President of the Company is very interested in aquiring the name BUT the board had overruled him as they felt the name was too expensive and he had to withdraw the offer.

This morning, I received an email advising they were still interested in purchasing the name
but could not pay the previously agreed price. I was offered an amount approximately 40% lower.

My instincts tell me they are playing the game looking for a lower price and I should counter his second offer. However, IMO we also had a valid contract that they broke. I would be curious to hear some of your thoughts.

Should I : Counter his second offer, - Stick to the original agreed price or just walk away ( I am not in a hurry to sell)?

 

[mr-x]

Your lawyer would be the best person to offer advice on a legal matter.

Reminds me of bartering in Mexico, the price often drops dramaticly when you turn and walk away.

 

[Dave_Z]

You have the name they want, you hold the power.

Wield it. :kickass:

 

[Jeff]

However, before we could fax back our acceptance of the offer, I received a telephone call from my contact stating that while the President of the Company is very interested in aquiring the name BUT the board had overruled him as they felt the name was too expensive and he had to withdraw the offer.

If I'm understanding and interpreting this correctly, legally you may not have recourse, IMHO. Ethically, they broke an agreement ... but since the Acceptance of that Agreement has not yet been signed, sealed, and delivered you may be left to negotiate downward in order to sell, as I see it. I do NOT condone their actions, obviously! Yes, too, it may be ploy.
However, if the "range" below which the original, agreed-to number was is still acceptable to you, I would continue with the negotiations (through your attorney). I'm not sure if we're talking $9,999 or $1,000 (original offer) here, or the specific domain name, but it still sounds like you can enjoy a nice profit from the domain name, said and done.
Really, CP ... shame on them for not being more professional, and at least signalling to you that "Board Acceptance" would be required as a condition of the sale, as well.
Negotiate firmly!
Best of Luck here.

 

[jj2ii3344]

If the offered price is not too bad, I would accept it! Make some nice profit. ^^ This kind of chance may not come a second time.

 

[RJ]

Is this some nickle & dime operation where 40% of $x,xxx is going to break their bank? I would hold firm on the original agreed upon price, fully prepared to remain the owner of that premium two letter .ca if they bow out.

 

[CenterPoint]

I'm not sure if we're talking $9,999 or $1,000 (original offer) here, or the specific domain name, but it still sounds like you can enjoy a nice profit from the domain name, said and done.
Really, CP ... shame on them for not being more professional, and at least signalling to you that "Board Acceptance" would be required as a condition of the sale, as well.

We are looking at the high end of the range, Who would figure the President of any company could be so easily influenced.

Originally posted by -RJ-
Is this some nickle & dime operation where 40% of $x,xxx is going to break their bank? I would hold firm on the original agreed upon price, fully prepared to remain the owner of that premium two letter .ca if they bow out.

Not a small company, I think it is just a case that Mr. Board Member feels despite the downside of the .com they would be better to aquire that if possible and the .CA is not worth as much as the .com

Without getting into alot of specifics, I think the .COM would be the kiss of death for them. Their company name and the name of the defuct company are very close. I have told them the .CA will reduce any possible confusion with the defunct US company by clearly identifying them as Canadian.

I also mentioned that even if they are able to buy the .COM, given the litigation and the fact verisgn has locked the name it could be years before they see it transfered.

 

[Coastalguy]

You mentioned that you were not in a hurry to sell. Based on that I would say stick to your guns.

ST

 

[bensontwenty]

Originally posted by -RJ-
Is this some nickle & dime operation where 40% of $x,xxx is going to break their bank? I would hold firm on the original agreed upon price, fully prepared to remain the owner of that premium two letter .ca if they bow out.

Couldn't agree more - they struck a deal and have then reneged on it. Unfortunately, I dont know the law in your area but in Scotland you would be deemed to have a valid contract.

I am presuming that they could not take it off you in a domain name resolution because of trademark etc - if this is the case, stand firm to the agreed price and even start to develop the domain - that should bring them running.

 

[redhippo]

legal issues aside, i agree with the arguement
that power is in your hands since you are not desperate to sell.

the ball is in their court,..........its a waiting game :gl:

 

[pelican]

End user would of cause like to purchase as low as possible.
Since they email you a few email which seems to show a great interest in the domain + you are not in the hurry of selling + it consider premium domain. Hold on firmly with your price.

 

[fifihopkin]

Go the higher authority close.
Tell them that your boss had proved the previous price and that they can proceed that that price. To get the lower price approved, you will have to offer it at the new lower price to all your wholesale customers and then get it signed off by your sales manager, your managing director. The new approval price should take 72 hours. However they do run the risk of losing the name to a wholesaler. We have previously told our wholsale customers will would not sell the domain for below $(add 25% to their original offer).
Should make them sweat a bit and create some uncertainity. Big customers hate uncertainity. And they hate things going into play. You got to think from their point of view.
Sounds like you have a couple of independents on the board acting like big dogs and pissing everywhere. You need to give the president something to scare his board with.
good luck. don't blink. And if you lose the customer, this post never existed.

 

[armstrong]

If I were in your place, I'd play hardball. Tell them that:

The price just went up 10%, and any further hee-hawing will mean another 10% - any questions?

That should knock some sense into them.
my disclaimer - I'm not responsible for anything other than positive outcomes from my advice. :hehe:

 

[Wanda]

You answered your own question.. when you stated

"Am not in a hurry to sell"

If I were in your situation, I would NOT lower the agree'd on price. I would politely "thank them" for considering your XX.ca domain, and that you regret they are unable to meet the agree'd on price. However,
assure them that the domain is currently being offered for sale on the "open domain aftermarket" and that you feel this worthy 2letter .ca will most likely have a "new owner" shortly.
***********************************************

and let them sit on that a while.

Keep us posted.

Stick to your original agree'd on price..
with dignity!

 

[armstrong]

Originally posted by tres
Reminds me of bartering in Mexico, the price often drops dramaticly when you turn and walk away.

This can happen if:
- the buyer has lots alternative options, and
- you (the seller) really need the cash

Otherwise, you're in the better bartering position.

 

[mr-x]

Originally posted by armstrong
This can happen if:
- the buyer has lots alternative options, and
- you (the seller) really need the cash

Otherwise, you're in the better bartering position.

I was just comparing the actions of the buyer. I don't believe the whole board story.

CenterPoint could probably sell the domain for 40% less later so he is not losing anything.

 

[CenterPoint]

Originally posted by tres
I was just comparing the actions of the buyer. I don't believe the whole board story.

CenterPoint could probably sell the domain for 40% less later so he is not losing anything.

I am not sure you could actually compare the actions of the buyer. What makes you think I would sell it for 40% less at a later date?

Originally posted by WandaCox
You answered your own question.. when you stated

"Am not in a hurry to sell"

If I were in your situation, I would NOT lower the agree'd on price. I would politely "thank them" for considering your XX.ca domain, and that you regret they are unable to meet the agree'd on price. However,
assure them that the domain is currently being offered for sale on the "open domain aftermarket" and that you feel this worthy 2letter .ca will most likely have a "new owner" shortly.
***********************************************

Thanks Wanda, that is the direction, I am seriously moving toward.

Originally posted by redhippo
legal issues aside, i agree with the arguement
that power is in your hands since you are not desperate to sell.

the ball is in their court,..........its a waiting game :gl:

I am not going to split hairs about the "Legal" aspects
of if we had a contract or not. I use lawyers to facilitate large transactions especially in Corporate cheque situations

I would like to thank everyone for their thoughts and opinions, they have been helpful and helped me to
formulate a strategy in my mind.

 

[pelican]

Originally posted by fifihopkin
Go the higher authority close.
Tell them that your boss had proved the previous price and that they can proceed that that price. To get the lower price approved, you will have to offer it at the new lower price to all your wholesale customers and then get it signed off by your sales manager, your managing director. The new approval price should take 72 hours. However they do run the risk of losing the name to a wholesaler. We have previously told our wholsale customers will would not sell the domain for below $(add 25% to their original offer).
Should make them sweat a bit and create some uncertainity. Big customers hate uncertainity. And they hate things going into play. You got to think from their point of view.
Sounds like you have a couple of independents on the board acting like big dogs and pissing everywhere. You need to give the president something to scare his board with.
good luck. don't blink. And if you lose the customer, this post never existed.

I feel that fifihopkin suggestion is a good one. Your customer goes throught the board, you too have to go through the board and let them know if you lower the price, you are going to inform other propective customers about the new price.

 

[mr-x]

Originally posted by CenterPoint
I am not sure you could actually compare the actions of the buyer. What makes you think I would sell it for 40% less at a later date?

I'm not.... I'm stating the obvious. Why would you cut your price 40% now. Even if the sale falls through, you should not have a problem selling the domain for %40 later so there is no reason to even consider that price.

You can negotiate and try to get a % of the asking price or not. They turned and walked away. Do you let them keep walking or lower the price. It's not rocket science.

 

[Terry]

I wouldn't give them any BS. Just talk straight. Find a diplomatic way of reminding them that Businesses come and go. Bussinesses have highs and lows. If they cannot afford domain at the value that they agreed on themselves, it won't be long before somebody can. Give them a little shake and see if the cash doesn't shake loose. Nothing too drastic.