discuss Raising BIN price during negotiation

[vast]

Hello,

I'd like to ask for everyone’s opinion regarding the following situation.

Yesterday, I've received an offer for one of my domains at DAN.com. It had the BIN price set, yet the inquirer has chosen to submit an offer a bit below it. Before replying to that offer, I've looked a bit as usual through the recent news published for the term standing behind the domain name, and discovered some recent one covering the event that could potentially have the highly positive effect on the corresponding area and increase the domain name value. I've immediately removed the BIN price and am currently in the process of analyzing the probable extent of this supposed impact. Yet the inquirer has reminded me about her offer and was wondering what's up with the BIN price.

So I’ve started wondering myself – how acceptable would be driving the BIN price up in such a situation? The platform terms of service don’t explicitly prohibit this, but how’s that from the point of good business practices, what do you think?

Thanks

 

[rh2000]

Hello,

I'd like to ask for everyone’s opinion regarding the following situation.

Yesterday, I've received an offer for one of my domains at DAN.com. It had the BIN price set, yet the inquirer has chosen to submit an offer a bit below it. Before replying to that offer, I've looked a bit as usual through the recent news published for the term standing behind the domain name, and discovered some recent one covering the event that could potentially have the highly positive effect on the corresponding area and increase the domain name value. I've immediately removed the BIN price and am currently in the process of analyzing the probable extent of this supposed impact. Yet the inquirer has reminded me about her offer and was wondering what's up with the BIN price.

So I’ve started wondering myself – how acceptable would be driving the BIN price up in such a situation? The platform terms of service don’t explicitly prohibit this, but how’s that from the point of good business practices, what do you think?

Thanks

I wouldn't do it, but good luck to you.

 

[karmaco]

Good reason not to set a buy it now on names you aren’t sure about. It is probably another domainer who wants it but taking away buy it now price instead of just raising it later is pretty sketchy looking —like you don’t know what you want. An end user would just move on unless they really really needed that name.

When in doubt leave buy it now OUT

 

[garptrader]

Sometimes when sales are slow domainers may experiment with lowering BIN prices. If an interested is looking at your domain but has not yet bought, they may be waiting for an opportunity to buy it at a lower price (like we might do with a travel reservation or other online price). When make offer is an option, potential buyers believe they can negotiate a price considerably below the BIN price. If all the sudden the BIN price is raised and no negotiation allowed, that potential buyer is probably lost (if I am considering a hotel priced at $125 a night and suddenly the price goes to $250/night I look for a different hotel.)

 

[vast]

Thanks for sharing your opinions guys. I've got that, actually matching my own perception. I wanted to elaborate that a bit by using a "crypto" domain as an example - e.g. imagine having a good one listed with the BIN price before the cryptomadness has started a couple of years ago, then opening the laptop one morning and seeing an offer for it below the BIN price, while noticing some high volume sales started indicating the beginning of the uptrend - wouldn't it be OK to re-evaluate the BIN price or just remove it? But I agree that the end user should be frustrated in the similar situation indeed. So I won't go above my initial BIN price during this negotiation cycle indeed, thanks for clearing my doubts.

 

[korganian]

Do whatever you want to do with your assets. The inquirer blew their chance to buy it below value at the bin you had listed. Don't worry about what they think. You will probably sell it to someone else later at the higher price you value for it.

 

[vast]

Do whatever you want to do with your assets. The inquirer blew their chance to buy it below value at the bin you had listed. Don't worry about what they think. You will probably sell it to someone else later at the higher price you value for it.

Technically, you're right, but doesn't that make the domain market look like the uncivilized one (although it really is by this moment)? Actually I think that's a sort of grey area... More opinions are welcome.

BTW, I've already counter-offered with my initial BIN price, will see if it's accepted.

 

[branding]

Just tell them you removed the BIN to prevent other parties from acquiring the name while you're negotiating.

 

[frank-germany]

I think you have 2 options:

1) accept the offer
2) set any BIN you want
3) go on vacation
4) set no BIN price and go on a vacation

 

[Bob Hawkes]

I think once an offer has been made it is not right to change the BIN price until the negotiation has clearly ended. At that point, by all means set it differently. But I would feel it was unprofessional if I submitted a bid knowing the BIN was one amount, then the person responds by upping the BIN. As a potential buyer I would leave the negotiation and probably complain to the marketplace. I totally agree that others see this differently, but that is my opinion.
Bob

 

[vast]

Just tell them you removed the BIN to prevent other parties from acquiring the name while you're negotiating.

Yes, that's what I've done - I've left the initial BIN price available exclusively for the inquirer via the private counter-offer.

I think once an offer has been made it is not right to change the BIN price until the negotiation has clearly ended...

Thanks for putting this into words, I agree.

I think you have 2 options:
1) accept the offer
2) set any BIN you want
3) go on vacation
4) set no BIN price and go on a vacation

Looks there are some more options available

 

[GoWebnames.com]

I think once an offer has been made it is not right to change the BIN price until the negotiation has clearly ended. At that point, by all means set it differently. But I would feel it was unprofessional if I submitted a bid knowing the BIN was one amount, then the person responds by upping the BIN. As a potential buyer I would leave the negotiation and probably complain to the marketplace. I totally agree that others see this differently, but that is my opinion.
Bob

Quite right Bob. IMO, it's highly unethical and unprofessional to indulge in such behavior.

The moment such things have happened to me, I have always walked away from the deals. Once I made a slightly lower offer on a $750 BIN name, the seller change the BIN to $50,000. In no time, I told him to get lost.

 

[vast]

Quite right Bob. IMO, it's highly unethical and unprofessional to indulge in such behavior.

The moment such things have happened to me, I have always walked away from the deals. Once I made a slightly lower offer on a $750 BIN name, the seller change the BIN to $50,000. In no time, I told him to get lost.

I think you are referring to somewhat different scenario than I've described.

 

[Bob Hawkes]

Yes, that's what I've done - I've left the initial BIN price available exclusively for the inquirer via the private counter-offer.

OK I misunderstood the meaning. Sorry. In this case, I see no problem (although would not do it personally), as long as it is communicated clearly to the potential purchaser that the BIN price they saw is still available.

But do not most marketplace platforms make the domain not appear as available at BIN if an offer has been made?

Bob

 

[tonyk2000]

I'd say it depends on the original setup, namely:

a) If it has BIN with optional makeoffer, such a setup implies that the seller may be willing to accept lower amount. In this cases, negotiations are expected. Increasing the BIN would be irrelevant then. If the seller elected to increase the BIN - why not, it would not change anything in aspects of current negotiations. Since the buyers are all different and may consider increased BIN as something unethical - I would not increase the BIN if the negotiations are in progress.

b) If it has pure BIN without makeoffer option - then the seller is not willing to negotiate. Making offers is not necessary good then. As a seller, I'd confirm to such a buyer that the price is firm and no offers are necessary. I'd also make sure not to change the current published price for some time, lets say a week or so (quote sent and confirmed, let the buyer have some time to decide etc).

c) If, in previous case /* b) */ the BIN was very fair - then I'd definitely increase the price after some timeout. By "fair BIN" I mean a pure fact that the potential buyer (who made a lowball offer) is well aware that he was lowballing... instead of appreciating the fact that he is not dealing with lets say Rick Schwartz or Frank Schilling (who would have priced the same domain very differently). There are domainers constantly sending lowball offers to other domainers, it is unfortunate.

 

[vast]

OK I misunderstood the meaning. Sorry. In this case, I see no problem (although would not do it personally), as long as it is communicated clearly to the potential purchaser that the BIN price they saw is still available.

Well, actually, the counter-offer with the same price as BIN should work similarly if accepted, just in the private fashion.

But do not most marketplace platforms make the domain not appear as available at BIN if an offer has been made?

Good point, I haven't thought that for some reason, was sure it was displayed - will check the next time. Thanks.

 

[shorterwinters]

I can not find the thread, (perhaps someone else can, 1.5-2 years ago?) but there was someone here who had a BIN set on one of their domain names. It was a good name, I think two words and crypto if I remember correctly.
The BIN was listed at something like $7800. An offer came in for something like $6800. It was a decent offer and not really low ball either. They changed the BIN to something like $38,000 and got it.
It was a rather fascinating thread and I could feel the rush of the negotiation happening. I found it a brilliant strategy in that instance for certain. An offer was made that was serious enough to know that the name was sincerely wanted and a seller shrewd enough to play it out in their favor.
I think it depends on lots of things. The name, the demand, the offer, the buyer, and how much you need the sale.
Many instances where that would flop and would not be the right thing to do, probably more often than not, but.........

 

[vast]

I can not find the thread, (perhaps someone else can, 1.5-2 years ago?) but there was someone here who had a BIN set on one of their domain names. It was a good name, I think two words and crypto if I remember correctly.
The BIN was listed at something like $7800. An offer came in for something like $6800. It was a decent offer and not really low ball either. They changed the BIN to something like $38,000 and got it.

So was that ethical in your opinion?

 

[shorterwinters]

So was that ethical in your opinion?

In that particular instance and the way I understood the way everything was set up and the way the offer was made, Yes, without a doubt I thought it was just fine and not sneaky, underhanded, or unethical. Just shrewd and brilliant. Maybe I missed something but I don't think so. I really wish I could find the thread, I have looked twice.
Like I said tho, many times and more often than not it may not be. Others here have pointed out some very valid points regarding this to consider.
I wish you luck.

 

[vast]

Thanks for the straight answer, appreciate that. So looks the border between good and evil is quite subtle here, depending on a number of factors. Although it seems to me that the public perception greatly depends on the money amount being involved and whether the negotiation has ended with the success or failure.

 

[BaileyUK]

Yes, that's what I've done - I've left the initial BIN price available exclusively for the inquirer via the private counter-offer.

I think that's the right move: The potential buyer had one opportunity to buy at Bin, And you've kindly given them a second chance at that price. Purely in a legal 'contract' sense you are free to change any advertised price as many times as you wish - Prior to an Acceptance of an offer ( A bin price is purely a pre-acknowledged intent of contract).

Many people are unaware that it is a purchaser that controls the 'contract price' in a legal sense (by making an offer) An advertised price is merely an *'Advertisement' of an intent to sell at that price. That's why you often hear of Advertised price mistakes being rejected at the till

*When you buy any item, even with a price-sticker on the top - You are making a offer to buy at that price at the point of transaction. Hence all the T&C's at all domain sellers sites that are almost impossible to enforce in Law. Your breach of contract is then with the reseller-Site Not the potential buyer

This of course works in the sellers favor again if an offer is made to purchase. A buyers offer accepted by the seller is an Enforceable contract in Law.

It is worth understanding the seller/buyer legal situation because it applies in every purchase. And it will save you shouting out about the rights and wrongs of a failed transaction

 

[vast]

So the buyer has agreed to proceed with the initial BIN price. Probably one of the sales I'll keep on regretting about, but definitely not the first nor the last one. And, I still have a chance to get the name back if the buyer defaults to pay eventually, since she's opted to proceed with the monthly payment plan - yep, that was an option on the initial landing page she has asked for as well. Feeling a bit silly but honest, an interesting one.

 

[BaileyUK]

We've all been there, Pleased to accept a price only to become aware of who the purchaser was (at a later date) or to quick on the accept button, when a couple of hours just reading the business press may open your eyes

PS. the above legal position is just a very short summary of 'Law of Contract' took me two years of Higher National Diploma in business studies to get my head around business law. Amazing how much law of contract takes up around 80% of business law

 

[frank-germany]

So the buyer has agreed to proceed with the initial BIN price. Probably one of the sales I'll keep on regretting about, but definitely not the first nor the last one. And, I still have a chance to get the name back if the buyer defaults to pay eventually, since she's opted to proceed with the monthly payment plan - yep, that was an option on the initial landing page she has asked for as well. Feeling a bit silly but honest, an interesting one.

"Old Baron Rothschild's recipe for wealth winning applies with greater force than ever to speculation. Somebody asked him if making money in the Bourse was not a very difficult matter and he replied that, on the contrary, he thought that it was very easy... "I will tell you my secret if you wish. It is this: I never buy at the bottom and I always sell too soon."

 

[biggie]

So the buyer has agreed to proceed with the initial BIN price. Probably one of the sales I'll keep on regretting about, but definitely not the first nor the last one. And, I still have a chance to get the name back if the buyer defaults to pay eventually, since she's opted to proceed with the monthly payment plan - yep, that was an option on the initial landing page she has asked for as well. Feeling a bit silly but honest, an interesting one.

Hi
glad it all worked out

doing the right thing, is good karma.
even if you feel like you're leaving something on the table.

cuz, what goes around, comes around

imo...