Negotiating insight on a failed sale?

[dag]

I received an offer through Sedo of $500 on one of my brandable .COMs about 10 days ago, followed immediately by a revised offer of $510 -- for the .COM plus the .NET as well, which I also own, with a note from the party making the offer that they were only interested in them together (clearly, they had just noticed it after the first bid). I came back with a counteroffer of $2000 for the pair, stating also that at that price I would agree NOT put them up for auction following the negotiations. They responded with a counteroffer of $1100 for the pair, again stipulating that it must be for both. Cool, I thought, but I just couldn't resist nudging a bit higher -- I counteroffered $1250, stating that I felt that was a good midway point between their original offer and my first counteroffer.

I heard nothing back after a couple of days, at which point I sent them a note at the end of last week saying I'd decided not to pursue the auction route anyway, regardless of the final selling price, and I dropped the counteroffer to $1225, simply because a reduced offer was the only way to get a new note through to them.

Finally, yesterday I got a message from Sedo that negotiations had been cancelled, and the thread discontinued. Thing is, I would have been very happy with the $1100, so I'm P.O.'d at myself that I didn't just accept their counteroffer. Aside from that, though, does it seem like I did anything substantially wrong in this, or is it probably just a case of the buyer having second thoughts?

 

[nkrishna]

Just a guess here - it's more likely that something else derailed it, given that their counter offer of $1100 followed your $2000 statement. Normally I've noticed in negotiations that it does follow a back-and-forth - unless either party specifically mentions that a particular offer is final.

I wouldn't let this get you down.

 

[Spade]

Unfortunately this is how the world works. This has happened to me serveral times. But the simple truth is, no seller wants to leave more money on the table then there is. I dont blame you for countering, I would have done the same - but hind sight is 20/20 and your just gonna have to see what happens. If I were you, I'd raise the price! thatll teach em!

 

[cache]

if it were in an auction, bidding up a few times is normal. However if you had to go back and forth in a deal a few times, when you have to talk to your partner to agree the purchase, the cancel deal can happen if you have to relay the message a few times.

 

[dgridley]

My thoughts are: if you would have been happy with the $1100, that's where the negotiations should have ended.. and you'd be $1100 ahead.

 

[dag]

My thoughts are: if you would have been happy with the $1100, that's where the negotiations should have ended.. and you'd be $1100 ahead.

Well, yes...that's what I realize now. I guess at the time I wasn't sure that it felt right to me, considering that it seemed they were probably wanting to use the name for a business undertaking (hence wanting to protect the .COM with the .NET, and the fact that it was a brandable type of name). I figured there was room to push a little higher for two domains. Guess I was wrong, and next time, I'll have to think twice about whether that's the wise choice.

If I were you, I'd raise the price! thatll teach em!

Great idea! They'll come crawling back when they realize what a great deal they would've had! :hehe:

 

[DomainBuyerBroker]

As a seller, especially via Sedo, you don't know how motivated your buyer is. I've done dozens of deals and every one is different.

The best time to sell is when someone is buying. Don't let a deal get away for a couple percentage points on the money. There may never be another buyer for that domain.

If you believe in the value you set and it is realistic, stick with it unless you need the money.

 

[dag]

If only there was a way to get back in touch with them. These anonymous Sedo offers have their advantages and disadvantages.

 

[NameClerk]

Don't be too upset over it. Learn from it and move on. One positive, when it comes to future negotiations for the pair, you can let the interested parties know that you've received $xxxx offers in the past.

 

[dag]

Don't be too upset over it. Learn from it and move on. One positive, when it comes to future negotiations for the pair, you can let the interested parties know that you've received $xxxx offers in the past.

Good point -- of course, that assumes I get other offers on them...

Oops, sorry...I'm supposed to be trying not to get too upset about it.

 

[NameClerk]

Good point -- of course, that assumes I get other offers on them...

VOIP is a decent market. You've got that going for you too.

 

[Kate]

My remarks:
Initial offer: $500. You replied with $2000.
Next offer: $1100. You replied with $1250 which is very close. I think your counteroffer should have been higher. It was closer to their price than yours.
Since they increased their previous offer by $600, I wouldn't decrease my offer by more than $600. So I would respond $1500 or so. That is an offer in between. Don't leave too much ground too fast.
Also I would wait until offer expires (7 days) before submitting a new offer or extending the previous offer. They may need some time to ponder a decision.
By showing eagerness to sell you lose the advantage.

It is possible that $1100 was the best they could do. Then they should select option 'This is my final offer' or send a personal note and you take it from there. I would say buyer probably has poor negociation skills as well. Maybe there is nothing you could do but the advice above may be useful for future negociations. Best of luck.

 

[dag]

My remarks:
Initial offer: $500. You replied with $2000.
Next offer: $1100. You replied with $1250 which is very close. I think your counteroffer should have been higher. It was closer to their price than yours.
Since they increased their previous offer by $600, I wouldn't decrease my offer by more than $600. So I would respond $1500 or so. That is an offer in between. Don't leave too much ground too fast.
Also I would wait until offer expires (7 days) before submitting a new offer or extending the previous offer. They may need some time to ponder a decision.
By showing eagerness to sell you lose the advantage.

It is possible that $1100 was the best they could do. Then they should select option 'This is my final offer' or send a personal note and you take it from there. I would say buyer probably has poor negociation skills as well. Maybe there is nothing you could do but the advice above may be useful for future negociations. Best of luck.

Thanks for the ideas. I don't know if any of that resulted in them leaving the table, since at least you'd think they would've come back with a lower offer. So I'm thinking maybe they couldn't go higher -- I just wish they'd at least reoffered that as their final price.

 

[hollyann]

Well, at least you were realistic in your initial response and didn't scare the buyer off in the first place with a $xx,xxx or $xxx,xxx counter offer. I hate it when I get a stupid or unrealistic counter offer. What a waste of time.

My general thought as a buyer is this: if a domain name is listed on Sedo in the first place, the owner wants to sell: The problem is, most of the sellers on Sedo don't act like it.....responding with outrageous prices.

 

[dag]

Well, at least you were realistic in your initial response and didn't scare the buyer off in the first place with a $xx,xxx or $xxx,xxx counter offer. I hate it when I get a stupid or unrealistic counter offer. What a waste of time.

My general thought as a buyer is this: if a domain name is listed on Sedo in the first place, the owner wants to sell: The problem is, most of the sellers on Sedo don't act like it.....responding with outrageous prices.

Thanks...I agree. I was trying to be reasonable about it, and I thought it was particularly so since they'd be getting two domains in the deal. Ah well...can't win 'em all.

And thanks to everyone else for the input so far -- it's very useful to hear that for the most part I didn't do much that was especially wrong.