question Pricing Strategy

[GoldenApple]

Hi everyone,

For domains that are under 1k, what is an ideal price point that you notice gets more sales?

I am trying to find the right balance between not pricing too high but at the same time making decent profit.

For example, which is better:

Pricing domains low at $499 in hopes of getting more sales or something like $899 to make more profit.

Do you think there is an ideal price point where users tend to not think too much about the purchase and just buy the domain?

Thanks

 

[twiki]

I can understand where you analysis comes from and it's quite true for .com where one might want to renew a good % of their portfolio to take it to the next year.

However, with cctlds, the low sales range will be additionally justified with the fact that majority of the domains won't be renewed in a similar way as the .com.

Even with .coms, there is a churn. You don't renew everything.

So in the last part of the reg year you might want to drop price on your lower end, so you make room in your budget for other purchases. There's always something new and interesting coming up.

 

[Bob Hawkes]

You have asked one of the most important questions in domaining @GoldenApple and it has generated superb answers from a number of domain investors with a long record of success so I will not add to what they have said other than to say that I think it really depends on each domain name. Some you just know are great and would bring value to the right end user and plan to keep them long term. On those, I would agree with those who say price higher. But it is true that for small businesses there is a sweet spot somewhere in the $$$ range that they won't hesitate too much over, and I would price some names in that range too.

I don't think that mention has been made of these posts which are relevant to the argument whether to price hight or not.

https://www.namepros.com/threads/yall-wanna-shoot-the-moon.1162085/

https://namebio.com/blog/dont-shoot-for-the-moon/

Related to your question is also whether one should use buy-it-now pricing at all, on which views differ as well.

You have asked good questions. Best wishes for success in domain investing.

Bob

 

[White Fang]

What platform are you currently using to do this? Check out one of my parked pages (Doxxed dot com) which shows how I have had success in selling for higher numbers. It is why I asked for quality and quantity in your portfolio. Is there any reason why you insist on pricing under $1k?

I can only speak on the sales I have made personally, and it is very rare when I sell for under $1k. Perhaps twice in the past 6 months or less, and the sales were all randomly priced or according to the buyer's offer. Perhaps @Rob Monster can share some big picture data on BIN pricing at that level. But I encourage you to analyze your domains to get better yields.

What kind of success have you had leasing names rather than selling them?

 

[White Fang]

I'm just starting this myself, but I think Epik gives full access to all their templates. The domain should just be registered with Epik, and if sold you pay some transaction fees, but the fees seem very low for all the service you get.

I kinda like the idea of using 8.... Like $488 $888... but I usually price my domains between 3 - 6k. For your strategy, maybe go 188, 288, 388, etc. 8 can be considered a lucky and rich number. Just a thought.

 

[White Fang]

As far as the features Epik offers, what is the benefit of just pointing the servers to Epik versus having Epik as the registrar?

 

[Pazu]

If it's registered with Epik, you can get instant transfers and (I believe) more payment options for the buyer. If Epik is holding the domain, they can immediately take it into their escrow-type system, which enables the buyer to instantly buy and take control of the domain on a payment plan.

Following up with a little empirical evidence on pricing with 8. Just sold a domain on Sedo BIN $4888... first time I sold a name with no negotiation.