advice Price sensitivity = very different for diff. price ranges, + some recent trends. Keep this in mind.

[twiki]

I've been seeing this over and over and over again. Including lately with a lot of sales / testing including this sale from today. For some might be obvious, but if not, keep this in mind.

The price sensitivity of buyers goes much higher when your domain has a lower retail price. This is also very important for beginners and it is a common source of failure as they really tend to overprice their names.

This is what I observed:

- With domains of less than $2k in value, make 100% sure that you don't overprice them. Cause you're not going to sell them and you will do more harm than good to your business.

Beginners tend to do this often; and stick to the higher price cause they're so much in love with their names. Or they have no clue what a reasonable price is. It's a mistake I also did in my early days. (Edit: By having very reasonable xxx range pricing is how I made this business work in my case, and scale it fast).

Also. Lately these buyer's price sensitivity has increased by a lot by my observations, during pandemic. The volume is still there, but you have to be absolutely sure of pricing otherwise you're going to renew a lot of names with very few sales.

- While with $5k names and above, you can always stretch the price up by a lot and this also gives you room for negotiation if they don't straight hit BIN.

Buyers for such higher quality names are businesses. The market is today driven by finance, crypto and tech etc. These fields are booming and demand is off the chart. So the price sensitivity here has decreased instead. So be a little bolder and get a decent price for your higher quality name.

Final reminder: Make sure you never overprice your 3 to 4-fig names even by little, cause this reduces sale ratio by a lot as price sensitivity is much higher in this range In my latest 1-month test a 30% increase have driven sales on thousands of names to... basically zero. ( Edit: A 15-20% increase still has a very detrimental overall effect. )

 

[Josytal]

Does this apply to all domains in general or limited to certain niche, extensions or names or sellers ?
Nonetheless, thanks for sharing.

 

[twiki]

Does this apply to all domains in general or limited to certain niche, extensions or names or sellers ?
Nonetheless, thanks for sharing.

It applied to all my names regarding of niche and TLD. Also matches observations I made in the sales thread based on reports from others.

( Edit: Note, I do a lot of price testing, another post you might wanna check out, how I get my info)

 

[Ostrados]

What about $2k to $5k domains?

 

[twiki]

What about $2k to $5k domains?

Well between 2..3k there is some price pressure, hard to say though if increased by much. In certain niches (tech) the same price range is much better accepted.

Over 3k it gradually goes better but I still need more personal data, although trends show a bit of relaxation there too. You can do sales analysis comparison from year to year and draw own conclusions of course.

For 3k I see a push towards 2.5 k where this price point is much better accepted, perhaps also to the fact that many sellers stick to 3k or more so this creates a definite advantage. I see 2.5 k better converting than both 2 and 3 k as of today.

 

[playlife]

great sharing...in your experience what's the sweet spot for names below 1k? I think you mentioned $299. How about $499, $699 and $999? Thanks

 

[twiki]

great sharing...in your experience what's the sweet spot for names below 1k? I think you mentioned $299. How about $499, $699 and $999? Thanks

TBH I avoid pricing between $299 and 1k because overall I tend to make much less. Sales in this range are of lowest profitability.

It's a too expensive for a market buyer, and appears low in quality for someone with some buying power due to the price. $299 gets fast sales, 1k+ more rarely but there's enough made per domain. In between is not that good.

I only have some sales at the $750 / 788 price point, this one worked for me but other price levels not so much in this range.

 

[vivadh]

Every name is unique, so how do you tell that one is below one thousand or another is over two thousand or five thousand? Do you know of any articles or guides about domain pricing?

 

[twiki]

Every name is unique, so how do you tell that one is below one thousand or another is over two thousand or five thousand? Do you know of any articles or guides about domain pricing?

There is probably just only one guide about domain pricing - NamePros. You learn on this website.

Everything you need to know is right here.

However getting there takes experiments, spending money on own investing and a lot of reading. Will take some years for anyone to get there. It's called experience.

 

[playlife]

TBH I avoid pricing between $299 and 1k because overall I tend to make much less. Sales in this range are of lowest profitability.

It's a too expensive for a market buyer, and appears low in quality for someone with some buying power due to the price. $299 gets fast sales, 1k+ more rarely but there's enough made per domain. In between is not that good.

I only have some sales at the $750 / 788 price point, this one worked for me but other price levels not so much in this range.

Thanks Twiki...will try 299, 795, 995, 1995, etc.

 

[twiki]

Thanks Twiki...will try 299, 795, 995, 1995, etc.

$1750 is also an interesting threshold. I don't use it currently cause I want less price points to keep things simple, but I've seen it working. Anyway good luck.

 

[playlife]

$1750 is also an interesting threshold. I don't use it currently cause I want less price points to keep things simple, but I've seen it working. Anyway good luck.

Thanks...what do you think is the reason for $750 and $1750 ya?

 

[twiki]

Thanks...what do you think is the reason for $750 and $1750 ya?

I know there are buyers that would pay $1k max. For these, 1k is okay but they won't pay 1100 - ever. Their mind is set on 1k max. Not everyone is, but there are many like that.

In case of $750, I believe for them 1k is actually too much. In such case $750 is the logical level, beyond which they come too close to what they think is too much for the domain (actually, too much for what their mind says is acceptable and not really a budget thing or so).

Entirely psychological, as with most price points.

Edit: This is why I never use $995. $995 is 1k and the buyer knows it. $1050 is still 1k , a bit stretched but yeah, still 1k. Buyers identify it as 1k. So why not bank the difference in your pocket...? It doesnt make much sense to underprice like that.

However if you use $1099, that's a different story.

 

[karmaco]

The addition of payment plans can eradicate pricing issues imo unless your entire strategy is to flip low which mine is not. Most of us expect to wait years for end user pricing. Its to be expected. I think these various tactics only work on other investors— who are not my target audience.

If someone doesn’t have lets say even 2K to get a name for their business they probably have no business starting a business.

Still your data points are helpful for other flippers. So thanks for sharing your various results.

 

[twiki]

The addition of payment plans can eradicate pricing issues imo unless your entire strategy is to flip low which mine is not. Most of us expect to wait years for end user pricing. Its to be expected. I think these various tactics only work on other investors— who are not my target audience.

If someone doesn’t have lets say even 2K to get a name for their business they probably have no business starting a business.

Still your data points are helpful for other flippers. So thanks for sharing your various results.

Thanks. Not everyone will use payment plans, although they are definitely an option. I don't, and will not (even can't due to being in the EU and latest regulations kinda exclude this unless you want a lot of extra hassle).

Each domainer is different and portfolios are different. Side note I had payment plans enabled for years (on Dan) and NONE of my domains was ever bought through the payment plan, though I sold tons. Enough said, I think.