Pricing Names Too Low

[passini]

Usually domainers price their names on the high end. But I noticed lately a trend of pricing domains with buy it now prices too low.

I don't see how this could work, to price a decent
com/net/org under 1000 usd in a marketplace.

Yes I understand if someone wants to drop the name or is selling to some other domainer but otherwise doesn't make sense for me. I don't think that can bring gain in the long run. Especially with domains that could have buyers with big pockets.

I mean, if your domain is something like cheaphomemadebracelets.net of course the target enduser probably will not have the budget to spend too much.

But if the domain can have institutions, schools, luxury businesses as target endusers, why price it at 800? Doesn't make sense.

My domains targeted to this kind of buyers are priced accordingly. Doesn't matter how much I spent or how much they are worth wholesale. Who is going to buy is the target. I don't speak about premium names but those that can be sold for mid four figures to low five figures, these are the names in my portfolio.

Also my names that are good for small/medium business I never price, even if hand regs, less than 1500. If an enduser needs the name he will buy. This works for me.

Maybe I am wrong, I checked several domains in my "good" niches and I noticed this. Probably is just a case. I know every domain is unique and we live in a free world where anybody can price his domains as he wants but this definitely made me little nervous as for sure can hurt other sales.

What do you think? Do you notice the same or it is just me after a couple of drinks? Ok maybe three, lol

 

[lock]

Those who don't know the value of their domain name(s) are pricing it (them) too low (or too high).

Then we see your sig and wonder if highest price has a market.

 

[Samer]

Then we see your sig and wonder if highest price has a market.

Sigs dont show up mobile

 

[Truespin Domains]

Depends on your approach. I personally go for fast turnover.

So if I buy a domain for 800 on Monday, and sell it for 1500 on Friday, happy days.

Could I have got more for it I'd hung on for years? Probably, but that was never my intention.

 

[twiki]

Got me thinking.

I currently only sell 4-fig coms, apart from what i have at clearance which goes like $199 or so.

Anyway. I dont' do 3-word .coms (anymore), but I know I can get some decent ones. However I'd not price those at 4-fig, but in the 200-500 range, mostly. (except the ones worth more, likely fewer that will still go to 4-fig)

It might be a good strategy to create a tier I don't currently run. Side note I do have the ability (and manpower) to manage that too, and budget.

However If I'd price it over 1K I doubt the 3-word would really be profitable in the current market.

Edit: On the other hand, I'm torn as this market doesn't need more lowball sales as it drags everything down. So again, got me thinking.

 

[blogspotter]

SAV does $280 flat. It claims it is a third party investor, but I don't think anyone believes that. Of course, the investor does it only on their landers and uses privacy. Another fun fact: 100% of names I come across with SAV landers are at that price. So it seems their only client for landers is the mystery guy that has tens of thousands of names.

There are two ways to look at it: a) they compete with domain investors and undermine their business while asking for that business; b) well, whatever their intention, but if they scrape the barrel and take all available decent hand regs, besides hurting by damping, they also help a little because they remove the weak substitutes for the names.

Whatever whoever does, I focus on my business, inventory and pricing disregarding what I cannot control.

I agree with Brad that lowering prices to xxx doesn't increase your overall revenue, so why do it?

To be honest I have been tracking SAV for a few weeks. I also thoguht it was some investor but some people here at NP tells me it is SAV. They are just buying random 5 letter names that are a combination of CVCVC,VCVCV, VCCVC etc

I can tell right at drop what they will pick up for the day. But they are pretty shitty.,

Look at this
liwuq
cipoz
rokuv
baiws
xeemy
dooju

and from yesterday
tejol.com
bujeh.com
orowl.com
zunib.com
and so on...
These are much worse than the SH/BB accepted 5Ls that people are trying to dump here for 10-20 without any takers.

Looks like they are registering with a bot it without human intervention lol

 

[twiki]

To be honest I have been tracking SAV for a few weeks. I also thoguht it was some investor but NO tells me it is SAV. They are just buying random 5 letter names that are a combination of CVCVC,VCVCV, VCCVC etc

I can tell right at drop what they will pick up for the day. But they are pretty shitty.,

Look at this
liwuq
cipoz
rokuv
baiws
xeemy
dooju

and from yesterday
tejol.com
bujeh.com
orowl.com
zunib.com
and so on...
These are much worse than the SH/BB accepted 5Ls that people are trying to dump here for 10-20 without any takers.

Looks like they are registering with a bot it without human intervention lol

I've noticed that too, been running for a while. However for these names I think it's an investor that doesn't have much skill OR has a specific plan (foreign lang?), not Sav. I mean .... they should know better.

 

[blogspotter]

I've noticed that too, been running for a while. However for these names I think it's an investor that doesn't have much skill OR has a specific plan (foreign lang?), not Sav. I mean .... they should know better.

Some sound foreign but it is random. They use related domains i guess so foreign names gets filtered

 

[Nikhil Jain]

I agree with this, as far as end users go.

I have done A-B testing in the past multiple times, and lower pricing has never resulted in more total sales revenue.

If you take a domain priced at $2,500 and price it at $500 it is not 5x more likely to sell from my experience.

As long as your domains are priced in a normal end user range, say under $5K I really don't think the STR is going to be that much different when it comes to end users. At least, not enough of a difference that you would need in sales volume to make up the gap.

You often just end up selling the best domains for lower prices, where you would have been better off leaving them all at normal end user pricing.

Brad

Brad, I agree with your point. To take things a bit further, what does your experience suggests in the following scenario?

Does pricing a $2500 domain as $5000 make much of a difference? Under 5k, in general, does it really affect the STR with that price change? If not, then wouldn't it be wise to price them all at 5K in order to achieve a higher turnover?

 

[DOMAIN ILLUMINATI]

Then we see your sig and wonder if highest price has a market.

Sure, since I consider the fact that many other industries have such a market (highest price), the answer is yes.

 

[bmugford]

Brad, I agree with your point. To take things a bit further, what does your experience suggests in the following scenario?

Does pricing a $2500 domain as $5000 make much of a difference? Under 5k, in general, does it really affect the STR with that price change? If not, then wouldn't it be wise to price them all at 5K in order to achieve a higher turnover?

I think it matters on the type of domain here.

You will often start hitting resistance on certain types around $2,500 such as GEO .COM or second tier extensions.

With just pure (2) word .COM not as much in my experience. You can also have a BIN with make offer. If someone was going to offer $2,500 - $3,500 a $5K asking price is unlikely to turn them away.

I think a BIN price with a min offer of 50% - 60% of the asking price is a pretty good option with most domains. It will weed out the lowballers and save you time and energy.

Brad

 

[CraigD]

Usually domainers price their names on the high end. But I noticed lately a trend of pricing domains with buy it now prices too low.

I don't see how this could work, to price a decent
com/net/org under 1000 usd in a marketplace.

Yes I understand if someone wants to drop the name or is selling to some other domainer but otherwise doesn't make sense for me. I don't think that can bring gain in the long run. Especially with domains that could have buyers with big pockets.

I mean, if your domain is something like cheaphomemadebracelets.net of course the target enduser probably will not have the budget to spend too much.

But if the domain can have institutions, schools, luxury businesses as target endusers, why price it at 800? Doesn't make sense.

My domains targeted to this kind of buyers are priced accordingly. Doesn't matter how much I spent or how much they are worth wholesale. Who is going to buy is the target. I don't speak about premium names but those that can be sold for mid four figures to low five figures, these are the names in my portfolio.

Also my names that are good for small/medium business I never price, even if hand regs, less than 1500. If an enduser needs the name he will buy. This works for me.

Maybe I am wrong, I checked several domains in my "good" niches and I noticed this. Probably is just a case. I know every domain is unique and we live in a free world where anybody can price his domains as he wants but this definitely made me little nervous as for sure can hurt other sales.

What do you think? Do you notice the same or it is just me after a couple of drinks? Ok maybe three, lol

I think a lot of investors have decided to dump their portfolios for whatever they can get at the moment.
In times of uncertainty it may be wiser to be debt free over being (virtual) asset rich.

 

[blogspotter]

Where are these people pricing good domains cheaper?

 

[twiki]

Where are these people pricing good domains cheaper?

It's not the regular investors, but the big mass of those with just a few domains, if not even just one.

I've seen growth in the low end sales, and the reason is simple. Trying to survive under current situation, and not trying to make a business for the long term.

For the seller, might be the need to put food on table now. For the buyer, might be the same as their job or business has failed so now they need a domain to try their luck at something else, and fast.

None of these two types will roll more than a few hundred.

 

[thedomainpromoter]

almost all my domains are priced under 1k. (currently)

 

[twiki]

almost all my domains are priced under 1k. (currently)

Nothing wrong with that. In my opinion the price is right for these domains (Edit: took a look via your link). And you're likely going to be in profit if any of them sells.

The thread is however about domains with a significantly higher retail value, that are being sold in the 1K range for whatever reason. Which is, in essence, a mistake.

 

[trelgor]

Depends on strategy. Price should be as low as possible while still letting sales provide decent return overall. To flip the switch and shoot the moon, if you are so inclined, you need a serious portfolio and serious balls.

 

[pokainc]

Tons of decent names are showing up $280 on SAV landers which to be honest is frustrating to see....and no, most are not names that as a reseller I would pay $280, but definitely worth 2k+ to end users. It's the reason so far I refuse to join their business as a client.

This strategy is a plague to the industry. Not sure how much money they are making off this strategy, hope it's worth it for the disservice they are doing to the industry as a whole.

 

[passini]

Tons of decent names are showing up $280 on SAV landers which to be honest is frustrating to see....and no, most are not names that as a reseller I would pay $280, but definitely worth 2k+ to end users. It's the reason so far I refuse to join their business as a client.

This strategy is a plague to the industry. Not sure how much money they are making off this strategy, hope it's worth it for the disservice they are doing to the industry as a whole.

I noticed this too. I backorder a few names everyday, just after the drop I check what's left and I may re-register one or two more by hand sometimes. I put the others that look decent in my watch list, I noticed several of these regged in a day or two and for sale at sav for 280. These are not so good domains but not so bad either. I dont see how is sustainable to make money in this way. If there is an enduser interested he will pay 1280, for a business it is a small sum. If it is not interested he is not going to buy even at 280, and domainers will not buy these at 280...

 

[pokainc]

I understand people can have their business models, but I can't see how that is sustainable unless you have so many names that are selling within the first year.. also the msg it's sending is domains are not valuable. equating 1-2 sneakers to a digital address that can potentially be the home of your business for years to come... many are annoyed by this 280 crap going on.

 

[passini]

But if everyone noticed this 280 thing I don't think is a domainer because we are talking about a lot of names... Could be SAV that for some reasons is making this? If this is the case it is not the first registrar buying names but why price them so low and all at the same price? I dont see a reason, I can think a couple but doesn't make sense to me anyway...