Need Help with a Domain Negotiation

[dnrabbit]

I sent out an email to a lead for one of my domains. Buyer asked how much I was looking for.

I quoted $3000, and he replied, "I think we can do that. What are the next steps?". I explained Escrow and set up the transaction.

After a few hours, Buyer replies: "Sadly, I may have jumped the gun on the willingness to pay the $3k. Getting some pushback since it was not anticipated/budgeted. What’s your absolute best price?"

How should I respond?

Notes:
1. My domain is ____works.com. His domain is ____worx.com. (Here ____ represents another word.)
2. My Domain is currently 20 years old and I had bought it for around $950.

 

[Joe N]

It's entirely up to you. If you want the 3K, all you can do is hold firm and bid him a good day if he's unable to meet you.

Could be he's just fishing for a lower price... but if there are others involved in the decision-making then his comment could be legit.

If you would accept less, then I would quote a slightly lower price, but make it clear that you're not entirely comfortable with it. Hopefully he/they want the name enough that they won't push further and will still be happy to have gotten a slight discount.

 

[Joe N]

Also... Make sure you decide in advance what your bottom line is, and don't waiver. If you set that number in your head in advance, it will be easier to walk away if he's being difficult. You spent $950 on the name, so you must like it quite a bit. Don't sell it for less than you think it's worth.

Other considerations:

• Have you held it a long time?
• Have you had other offers?
• Do you have other prospects for the name?
• Do you need the money badly?

 

[Silentptnr]

I would offer him a 10% discount and that's it.

 

[creataweb]

Payment plan for the full $3k.

 

[MapleDots]

If you own xxworks and he owns xxworx then all the power is in your hands.

They need the works because most people type that in the address bar. 3k is pittance for a business and can easily be incorporated into the advertising budget. Simply tell him that a domain purchase for business can be 100% expensed into the advertising budget and stand firm.

Amazing how many people don't realize it's a straight deduction.

 

[Domain Monk]

Start firm on ur price

 

[anantj]

What @creataweb Said. I think you should offer a two tier offer:
One time payment of 2700 (10% off) + Escrow fees

OR

Full 3K via a payment plan (i.e. initial down payment + equated monthly payments)

 

[karmaco]

Start firm on ur price

This is what I would have said. Not like you are asking for ridiculous amount.

They are just feeling you out IMO. Mention the asking price is lower than fair market value.

 

[frank-germany]

One time payment of 2700 (10% off) + Escrow fees

OR

Full 3K via a payment plan (i.e. initial down payment + equated monthly payments)

good advice

 

[dnrabbit]

Thanks for all the help, guys. I have sent the below reply. Fingers crossed!

======

Dear John,

The domain was already priced at a discount to its true market value.

This 20-year old premium domain is valued at $3900+ by GoDaddy.com. You can verify it here:

https://www.godaddy.com/domain-value-appraisal

I had a word with the owners and they have consented to a zero-interest payment plan to make the purchase affordable for you. You can pay $1000 down payment followed by $250 per month for 8 months.

By the way, did you know that a domain purchase for business can be 100% expensed into the advertising budget. It's a straight deduction.

Let me know.

Thanks,
MyName

 

[dnrabbit]

^^ I am trying to act as a broker always while negotiating for my names. Hence the use of the language, "I had a word with the owners"

 

[strugar]

^^ I am trying to act as a broker always while negotiating for my names. Hence the use of the language, "I had a word with the owners"

In which case I'd wonder what is your commission, does owner try to to sell it himself as well, and is it worth looking for real owner so to avoid broker's fee.

 

[Joe N]

^^ I am trying to act as a broker always while negotiating for my names. Hence the use of the language, "I had a word with the owners"

I'd be careful with this... Lying during a negotiation undermines your credibility and could leave the buyer feeling as though they're being toyed with.

 

[Silentptnr]

I'd be careful with this... Lying during a negotiation undermines your credibility and could leave the buyer feeling as though they're being toyed with.

I find honesty works best. I like fast negotiation where possible. I tell my price or they present their offer. They accept or I accept. They counter or I counter. Deal done or not done.

As I learned as a young man in sales....sw, sw, sw, next!

("Some will, some won't, so what...next!")

 

[MapleDots]

Yup, people feel better dealing with the seller directly. I hate buying via a broker because I always think.... what is his percentage cut.

I'm with @strugar on this one.

 

[dnrabbit]

Okay, that's a new learning for me. I'll communicate as owner in future negotiations.

 

[forge]

That email response would have turned me off completely (tl;dr), but then again the buyer comes off as disingenuous or at least unreliable.

Hope you can still rescue this sale.

 

[bobbarato]

Wiseguy answer: I would play hardball and forward my domain to a very inappropriate website then wait for them to come back and make offers...until the number got kind of high.

Serious comment: If you paid $950 and renewals for 20 years, I'd say 3k is a very fair price. And I am shocked to say that I actually agree with the godaddy estimate. Of course I don't know what your name really is and domain sell prices are not determined by how much we pay and how long we hold domains.

 

[frank-germany]

Thanks for all the help, guys. I have sent the below reply. Fingers crossed!

======

Dear John,

The domain was already priced at a discount to its true market value.

This 20-year old premium domain is valued at $3900+ by GoDaddy.com. You can verify it here:

https://www.godaddy.com/domain-value-appraisal

I had a word with the owners and they have consented to a zero-interest payment plan to make the purchase affordable for you. You can pay $1000 down payment followed by $250 per month for 8 months.

By the way, did you know that a domain purchase for business can be 100% expensed into the advertising budget. It's a straight deduction.

Let me know.

Thanks,
MyName

to me
you done it right.

now wait