discuss What is your definition of a wholesale price?

[MrMDMF]

Everyone seems to have a different definition of this term, leading to confusion, especially for new domainers like myself.

Simple question: How do you quantify a wholesale price, and what ranges do you include?

I only ask this as everyone's definition of success is widely different. Someone may sell 20 domains yearly at a 'wholesale' price. This may or may not even register on the fabled 1-2% sale-through rate, but that is a form of success, depending on their definition. On the flip side, one person may sell one domain in 3 years, but that domain goes for 5-6 figures, again, successful, depending on your situation and definition of success.

I'd love to know what you all think
-M

 

[johnn]

Wholesale price = Low Ball

 

[Kyle Tully]

Wholesale = price to another investor who can onsell for ~10x+

Retail = price to end user.

The actual number varies greatly based on the name, niche, market conditions etc.

Success for me comes down to whether you can build a sustainable business that makes well in excess of what you’d make trading those hours for dollars or investing using other strategies.

 

[pb]

For high value domains such as LLL, LLLL, it will be a price at which the domain is liquid.
For other (most) domains it will be 1-10% of the perceived market value, personally I'd say closer to 1%.
GD closeouts are a good example of wholesale prices; auctions not so much, because lots get snatched up by end users.

 

[Daniel Owens]

I usually think of wholesale as low-xxx even for 4L .coms. Then two worders for like $50 per seem wholesale to me.

 

[MrMDMF]

For other (most) domains it will be 1-10% of the perceived market value, personally I'd say closer to 1%.

Market value according to who? End-users? Resellers? Appraisal tools?

 

[pb]

Market value according to who? End-users? Resellers? Appraisal tools?

According to who's perceiving. If you're trying to sell, then it's you, if I'm trying to buy, then it's me. For example I see a domain at an auction that I think might be worth $5k to and end user, so I'd be willing to bid $50, $100, maybe $200 if it's really good. Or you want to liquidate a domain that you think might be worth $5k to an end user but you need cash or are tired of waiting, so you put it up for sale at namepros for $100 or start an auction from $50 etc. That's a wholesale price in my book.

 

[bmugford]

It depends on the type of domain.

"Wholesale" value on a LLL or CVCV is a lot different than some random two word combo that is easy to find and has low liquid value.

Brad

 

[Future Sensors]

Everyone seems to have a different definition of this term, leading to confusion.

So true. Adding to the discussion, for the wholesale section on Atom, they say this:

"Set a price for wholesale buyers. Typically this price is 40% or below of retail price."

 

[MrMDMF]

.

 

[johnn]

Look at this section and you will have a better understanding what wholesale price is:

https://www.namepros.com/forums/domain-buyer-requests.10/

 

[MrMDMF]

It depends on the type of domain.

"Wholesale" value on a LLL or CVCV is a lot different than some random two word combo that is easy to find and has low liquid value.

Brad

In my opinion, I don’t think LLL or ultra-premium domains ever even go up for wholesale or liquidation (unless the seller needs some quick cash).

I’m more so talking about ‘good enough’ domains - e.g. word pairings that make sense, are are short, are brand-able, etc.

So true. Adding to the discussion, for the wholesale section on Atom, they say this:

"Set a price for wholesale buyers. Typically this price is 40% or below of retail price."

This is precisely my point - the reference percentage that Atom provides is wildly different from what has been posted on this thread.

 

[bmugford]

In my opinion, I don’t think LLL or ultra-premium domains ever even go up for wholesale or liquidation (unless the seller needs some quick cash).

I’m more so talking about ‘good enough’ domains - e.g. word pairings that make sense, are are short, are brand-able, etc.

If the primary selling point is the domain "sounds good", then the wholesale value is going to be lower than a combo with many obvious end users.

Things like popular phrases, formats, etc. will have a higher ratio when it comes to wholesale value.

It's really on a per domain basis. There is no set formula.

Brad

 

[MrMDMF]

Things like popular phrases, formats, etc. will have a higher ratio when it comes to wholesale value.

It's really on a per domain basis. There is no set formula.

Brad

I think we discussed this before, and I agree. However, while each domain is different depending on who is willing to pay for it, I think it's essential to quantify ranges for reoccurring qualities in a domain to establish a more sustainable market.

 

[Kyle Tully]

I think we discussed this before, and I agree. However, while each domain is different depending on who is willing to pay for it, I think it's essential to quantify ranges for reoccurring qualities in a domain to establish a more sustainable market.

The beauty (and challenge) of domains is that each truely is a unique asset and everyone will assign different values to each one.

This is where your opportunity is

 

[VivifyDomains]

Somewhere between 1% - 10% of the perceived retail price from what I've seen

 

[DmytroK.]

Wholesale price is a price profitable enough for seller, and low enough to be considered as "reseller price" for buyer. Profitable for both domainers, seller and buyer. I don't think it's good to sell premium names by wholesale prices for end-users, if you don't know them a lot. There is, as I know, typical pricing for each type of domains, cvcv.com, 2 word .com, 1 word ccTLD, etc., accepted by Market. You should sell your names by this prices. By that way you work for growing domain business in all aspects.

 

[biggie]

Hi

to "non-domainers", there is no such concept of wholesale price.
they only know the price they see, or price you give them, if /when they are looking to buy a domain.

if you can figure the definition of "retail pricing", then the opposite should be wholesale, but in reality, it's not.

imo...

 

[MrMDMF]

I suppose a related sticking point question (for me at least) is how do price my domains for the largest demographic i.e. a perceived bargain for end-users to encourage impulse buying but also enticing enough to a reseller to buy, hold & make their own profit - if there even is such a thing

 

[Molly]

This discussion has been had. Other investors — especially here at NPs, aren’t going to offer more than a couple of percent retail value. See link below.

https://www.namepros.com/threads/is-there-a-middle-class-in-domaining.1329577/