discuss Reseller Pricing?

[WeSell-Domains]

I see a lot of comments on NPs about "Reseller Pricing". So how do most of you determine what reseller pricing is? If I regged a domain this year, reseller pricing might be reg fee + 100% or say $20. But if I have that same domain for 10 years and I have $100 invested then the $30 expected reseller pricing says I lose $70 on that domain. No way would I ever sell for that unless was going to drop it anyway.

Now if you say that reseller pricing is 30% of end user price, that I understand but still end user price is relative to what the seller thinks it is. I see way too many comments from buyers who are ticked off because they didn't think they got "Reseller Pricing". Maybe they did just didn't know it. So how to your calculate reseller pricing on your domains?

 

[johnn]

Someone just want to buy your name Cheap.
There is no retail or wholesale in the domain name business.

 

[maya-zir]

"I am reseller" it is just the way buy your domain cheap.
I hear all the time from people who call me "I have a friend-neibour-cousen who can fix my laptop for free, so would you do the same for a few bucks?"
I hate this.

 

[baseballworld]

Reseller price is selling the domain below what you think and end user will pay for it.

 

[Want2learn]

So reseller pricing is a misnomer then! It is a negotiating skill. Depending on the side you are sitting determines whether you like or dislike the misnomer!

 

[hawkeye]

So how do most of you determine what reseller pricing is?

What most mean here when they ask for 'reseller pricing' is they want to buy domains for basically nothing! And if you were willing to sell for only $10, they would reiterate, in non too friendly terms, that they asked for 'reseller pricing!!!'

Reseller pricing is basically what the lowest price the seller is willing to sell for, not what others demand they sell for.

 

[urlurl]

re-seller pricing means:

The buyer wants to buy your name with some good meat left on the bones for them to turn around and flip it for a profit. The less liquid the name the more of a spread they will demand from what they can potentially sell it for.

 

[Ayodeji]

It is just about selling higher than your cost price whether to end user or Investor all based on the perceived value of the domain. High enough to keep your boat sailing or depending on financially pressed you are.

 

[maya-zir]

@ultradog,
Discount and "reseller price" are not the same.
I also can make discount on domain bulk, on my work etc. The buyer just ask could I make discount because of amount and I say yes or no.
But ask to sell cheap "because I am reseller" sounds very far from just ask discount on amount

 

[DeliDomains]

Means.... buying out the weak and bankrupt domainers.

 

[doubleU]

Resale prices are generally higher for domains with liquidity eg.one-word-com's, short domains, high search volume domains.

Domains with fewer end users or domains with little present demand could typically resell usually to other domainers for 5-20 % of end user prices.

 

[boker]

I think that works something like this. The high average sale price of a random good handreg domain or low cost dropcatch domain is somewhere between 1k and 2k at big markeplaces. Also, for an average to good portofolio, the annual sale rate is around 2%. So, if you buy 100 domains as reseller, probably you will sell 2% of them in one year...that means on average 3k minus marketplace fees and taxes. So, if you buy 100 average domains for 10$ each, that's 1000$....and you will make on average 2k+ net. Probably double the value it will worth the risk to invest and wait for an enduser, but if you will buy the same domains for 20$ each, you will risk that amount without making any profits or even loosing some money. Everything depends of the probability of selling and the price you could ask for it. Even for good portofolios, 5% turnover is very good, so everything depends on how fast you think it will sell for for what amount. No sane investor will buy something at half price, because it will not worth the risk, nobody has a turnover of 50%, just in case when you have a buyer in mind already and you think that there are 90% chances that he will buy it. The big problem is when you count the value of a domain that you had it for 10 years, and the probable price sale of that domain will be 1.5 k, nobody will want to risk paying you 100$+ covering your renewals for 10 years and a little bit of profit, because it's not worth it, so probably you will ed up drop it, loose money selling at reg fee or sale it to end user(if you are lucky). Also, orther things that count is rarity, liquidity(it's worht paying 50% of the value, because you know you can sell it for double the value within one year for a llll.com for example)

 

[maya-zir]

@WeSell-Domains,
But the term "reseller price" doesnt exist.
Need proof?
Ok, offer to any registrar let you reg a bunch of thier domain with discount "because you are reseller".
If they acept your offer, I will be the first one who will recognize "reselling price" does exist.

 

[ultradog]

That's for volume. If someone were buying 100 domains from me, I'd also consider a price break.

 

[ultradog]

My mistake, I misread your post. I am in agreement with you.

 

[WeSell-Domains]

Post a link please

I just looked at 7 posts in the Names Wanted section. Three mentioned "reseller" "Looking for Deals" "Don't send End User Price" Don't want to post the links and bring negative or unwanted comments on other members. Just wanted to know how you view these statements and if you give automatic discounts to NP members..

 

[D Haynes]

I Like to think of reseller price as what it would sell for on Flippa as it is mostly domainers using that platform. So if I have a domain that I think an enduser would pay 10k for but I think would sell for 1k on Flippa, 1k is what I think of as the reseller price although if you have faith your names will sell to an enduser eventually, why would you sell for anything less. Unless the repo men are banging on the door...

 

[NameOmnia]

It is a way to say I want your domain for under market value..and I mean under under..below below
Like buying a cvcv for $500

 

[ikhub]

Isn't everyone of the domainer species a reseller ?

 

[Isac]

Let me tell you what actually is reselling price. Suppose you bought a domain " xxxx.com for $ 1000" and now you appraised it. After appraising you are sure you will sell it this domain to enduser for $ 10000. Now you are unable to sell or for some reason you want to flip it quickly to make some bucks. Now here comes another person which asks everyone to send their domain with reseller price. He is not going to buy it for $ 10000 for sure but he can except your domain for $ 2000 - $ 3000 . That mean you sold it to reseller price.
.
Note it depends upon situation and every case is different. But you should be sure how to appraise that domain. If unsure, you can request appraisal of domain in appraisal thread.

Hope this helps

 

[Ategy]

While technically it can mean almost anything .. and also varies domain to domain. If you want a vague average fuzzy number ... it's 10% of retail.

Essentially a lot of domainers have a maximum purchase price of 10% of what they think they will sell it at. Their reasoning is that they need that wide markup to maintain the rest of their portfolio renewals year after year (as well as pay their rent, etc etc).

While again that number is not in any way set in stone and veries from domainer to domainer as from domain to domain ... a as rule of thumb I think it's safe to say that the margin (% difference between "wholesale" and retail") in question goes down as the value of a domain goes up .. and conversely goes down as the price goes down.

So a $2000 retail domain might be wanted for $100 .. and a $100,000 retail domain for $50,000

Again .. those are just generalised examples .. there really is no exact science .. just as there is not real exact science on the pricing of non-liquid domains .. so at the end of the day what it means is that the person wants to buy it really cheap so that they have a wide enough margin to make it part of their portfolio WHILE being sure that portfolio pays for itself.


Remember that part of that calculation is that an average portfolio of an experienced domainer is supposed to sell about 2% of it's domains a year (again .. this is just very generalised .. the actual number varies quite significantly depending on quality and pricing). So essentially the margin between their "wholesale" purchase price and "retail" selling price needs to be able to pay for the 98% renewals of domains that don't sell in a year .. plus their expenses .. plus a profit for them to live off of ...


Please don't criticise what I said ... as I'm not saying it's right or wrong to expect to buy/sell at any particular price .. just telling you like it is ..

Fact of the matter is .. that if you are selling to almost anybody on NamePros or any other domainer focused forum/website you will almost never come close to selling your domain at full retail pricing unless it's to an outsider coming in with a very specific purchase request ... but that's under 1% of sales here .. at the most .. it's a big mistake to expect to get anything close to retail value in this forum. (Otherwise we would all be rich .. lol)

 

[WhosJose]

What is considered to be reseller pricing?

Is it a reseller from a registrar?

Or a reseller of domains?

 

[WeSell-Domains]

What is considered to be reseller pricing?

Is it a reseller from a registrar?

Or a reseller of domains?

I was referring to a reseller of domains here on NP and they are always asking for reseller pricing or wholesale pricing whichever you prefer.

 

[WeSell-Domains]

But the term "reseller price" doesnt exist.

Look at any of the "Domains Wanted" section. Buyers always ask for "reseller pricing"

 

[WhosJose]

Look at any of the "Domains Wanted" section. Buyers always ask for "reseller pricing"

Post a link please