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

 

[Higmathers]

@NamePros Is there some data about the amount of domain for sale posts and how many of them actually end up in a sale. I understand that is more difficult to keep track as payments are mostly through Paypal and Escrow but any data related to domain sales would be of value.

 

[Kyle Tully]

Honestly, if I reply on a post in 'reply to buy requests' the price I ask is within the range of 2%-15%, median I guess ~7%. Recently asked $39 for multiple two word eng .com domain names all with a indicated value based on DNrater' valuation ranging from 1100-2400 USD. No response at all. I wonder how many domains are actually being sold at NamePros.
Feels like everybody want to sell and nobody visit to invest, of course there are exceptions of investors genuinely looking for domains to buy. However, get more and more the feeling that those posting at Buying requests hardly to newer actually buy domains but are more pretending to instead to attract attention or wait for a BIN that .#%

Most names attempting to be sold on namepros (like the market at large) are absolute garbage.

There are diamonds in the rough and some sellers who consistently have good names, but overall it’s a harsh learning environment for both buyer and seller.

I don’t know your names specifically but dnrater scores on the higher end so names it values at up to just 2500 are in many cases not going to be worth hang reg… or similar names can be hand reg for 7-10 so 39 is tough.

 

[Higmathers]

Most names attempting to be sold on namepros (like the market at large) are absolute garbage.

There are diamonds in the rough and some sellers who consistently have good names, but overall it’s a harsh learning environment for both buyer and seller.

I don’t know your names specifically but dnrater scores on the higher end so names it values at up to just 2500 are in many cases not going to be worth hang reg… or similar names can be hand reg for 7-10 so 39 is tough.

Which isn't surprising at all since 95 percent or more are average or garbage.
Does that mean that you are not supposed to list for sale for a Wholesale price like 5% percent of the estimated value of multiple domain appraisal tools averaged leaving out the outliers. The range that I mentioned as an example would drastically change.

Or does NamePros become a marketplace for Ultra premium domains only?

I'm just tired of all those buying request claiming to buy all two word eng .com domains in bulk for a Wholesale price.
But asking 2-5% of the averaged not mere DNRater based value hardly ends in any sales.

 

[Higmathers]

na

 

[Higmathers]

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

One of your previous post in this thread is rather contradictive to this latest reply BTW

 

[VadimK]

Let me break it down what the wholesale price according to average NP buyer is (and they are pretty much the only ones to use the term):

- solid two words: $5
- solid one word: $50
- one word that will blow your mind: $100 (if you are very-very lucky for the buyer to consider paying this huge amount of money!!)
- one word that blows your mind, trending and is of 3 or 4 letters max. ($150 - absolute shocking number to pay!)
- AI.com (''wholesale'' buyer: $500???? - NO WAY!!!))

 

[Kyle Tully]

One of your previous post in this thread is rather contradictive to this latest reply BTW

Which one? In what way?

 

[Kyle Tully]

Which isn't surprising at all since 95 percent or more are average or garbage.
Does that mean that you are not supposed to list for sale for a Wholesale price like 5% percent of the estimated value of multiple domain appraisal tools averaged leaving out the outliers. The range that I mentioned as an example would drastically change.

Or does NamePros become a marketplace for Ultra premium domains only?

I'm just tired of all those buying request claiming to buy all two word eng .com domains in bulk for a Wholesale price.
But asking 2-5% of the averaged not mere DNRater based value hardly ends in any sales.

You can list or submit any names you like.

My point was that people aren't going to buy names at $39 when they can hand reg similar quality names for $7-10 all day long. Doesn't matter what % of whatever tool you're using to value them. It just doesn't make any sense for the buyer at that price.

 

[Higmathers]

You can list or submit any names you like.

My point was that people aren't going to buy names at $39 when they can hand reg similar quality names for $7-10 all day long. Doesn't matter what % of whatever tool you're using to value them. It just doesn't make any sense for the buyer at that price.

In get your point. However, there is still the subjective aspect you mention by yourself it in that earlier post .

And within the area that's considered as average domain names there are domains that are significantly better and stand out, e.g. because they are brandable and contains popular keywords or synonyms, current trends that are highly demanded, or short and meaningful.

These still being considered as average since all appraisal tools consistently will low value a hand regged domain taken in only the .com extension. Roughly that's true, but they are plenty of hand regged domains that have serieus potential value.

Btw it's not only that I address only hand regged domain names, the same holds for aged domains taken in multiple extensions as well. That fit the requirements of what's asked for in a Buy request and you reply with a price that's 10% or less of the value it rarely happens they it ends up I A sale.

Again, apart from the fact that I personally think those sections to post a Buy request or to reply on them to sell a domain that fits the picture is nothing but noise, an attractive for scammers and should be either reviewed and revised or removed.

Is there a possibility to create a poll to measure members expiriences with this part of NamePros ?

 

[equity78]

https://twitter.com/x/status/1834355023310151826

 

[Kyle Tully]

In get your point. However, there is still the subjective aspect you mention by yourself it in that earlier post .

And within the area that's considered as average domain names there are domains that are significantly better and stand out, e.g. because they are brandable and contains popular keywords or synonyms, current trends that are highly demanded, or short and meaningful.

These still being considered as average since all appraisal tools consistently will low value a hand regged domain taken in only the .com extension. Roughly that's true, but they are plenty of hand regged domains that have serieus potential value.

Btw it's not only that I address only hand regged domain names, the same holds for aged domains taken in multiple extensions as well. That fit the requirements of what's asked for in a Buy request and you reply with a price that's 10% or less of the value it rarely happens they it ends up I A sale.

Again, apart from the fact that I personally think those sections to post a Buy request or to reply on them to sell a domain that fits the picture is nothing but noise, an attractive for scammers and should be either reviewed and revised or removed.

Is there a possibility to create a poll to measure members expiriences with this part of NamePros ?

Honestly half the buy request threads look like fishing expeditions and market research more than genuine interest. That or pure hope that people don’t know what gems they’re sitting on.

 

[Higmathers]

Let me break it down what the wholesale price according to average NP buyer is (and they are pretty much the only ones to use the term):

- solid two words: $5
- solid one word: $50
- one word that will blow your mind: $100 (if you are very-very lucky for the buyer to consider paying this huge amount of money!!)
- one word that blows your mind, trending and is of 3 or 4 letters max. ($150 - absolute shocking number to pay!)
- AI.com (''wholesale'' buyer: $500???? - NO WAY!!!))

A solid one word ..com domain (inevitably taken in many extensions) for $50. You serious or joking? The average renewal price is $10 up to $50+ at a few registrars. All domain investors share one common goal, simply to make profit. Preferably as much as possible but another trait is comes with it,is that a fair share of them is extremely greedy,almost about to ask that additional transaction fees plus 1 year renewal included in their $50 for buying a solid one word .com domain. Damn

 

[Higmathers]

Honestly half the buy request threads look like fishing expeditions and market research more than genuine interest. That or pure hope that people don’t know what gems they’re sitting on.

Exactly how I think about it as well.

 

[equity78]

This isn't a new question and it's certainly understandable. Anyone coming from a business that makes sense, that has easy to understand pricing and tangible value can get befuddled by the domain industry.

The start of wholesale pricing in business was usually based off Manufacturer’s Suggested Retail Price (MSRP). What is the Manufacturer’s Suggested Retail Price for PitchPulse.com?

Many think hmmm, I don't know if I will ever sell a domain name to the ever elusive perfect end user. How can I know I will ever encounter such a creature?

But, I am in the domain investor townsquare every day. Namepros and then I also have that secondary Bazaar, X formerly known as Twitter.

I will sell my names to people who I know buy domain names. I will not get top dollar but I should get sales every day, every week.

The problem is you need to be offering something that has liquid value.

People who own LL.com NN.com, LLL.com, NNN.com, LLLL.com and NNNN.com have no problems getting offers, for them it's a question is the offer good enough?

Plenty of people own brandables, the madeup pronounceable kind or the two word kind, etc...

People think, oh these cost me $11, if I sell them routinely for $35 to $50 that's a nice business. But you are not going to sell 500 of them in a year at Namepros. Because you are selling to a seller. They probably have similar names, now someone might buy one or two but they are going to be your best names. Once they are gone you need to replicate them with some new handregs that everyone else missed.

If you do the math in theory it sounds great.

People tell themselves I am a wordsmith or I am a branding expert.


I registered 500 .coms for $5,500. I will sell them for $40 average and generate $20,000 in sales. $14,500 profit before any costs for accepting payments.

But in reality it takes a long time to sell 500 names, plenty of people here have just as good as your handregs. Plus they might sell cheaper you want $40 they will take $20, due to where they live in the world that number might provide a worthwhile profit for them. So they are trying to turn their $5500 into $10,000.

Never get caught up in, well I wouldn't sell that cheap. That means nothing if someone else will and they are offering the same or almost identical product.

Last year I sold a name I loved, Vibrint.com an alt spelling of the very valuable Vibrant.com. I never got an offer, would it have sold here? Sure but what we want to call a wholesale price is very minuscule. So it would never be worth trying to sell here. It sold for $4888 at Afternic.

There is no wholesale per se, when it comes to all those names. What people do is say wow I sold a name to a another domainer for a lot less than it was accepted at Atom or BrandBucket. I will call that wholesale.

But wholesale really plays a role when it comes to liquid domain names, because if someone has say a name like NP.com many people will offer an amount for that name, they might not offer the $3M the seller wants but there is a wholesale price if the seller wants to take that, from what I have seen and having clients that will buy, that LL.com wholesale is in the $350K to $500K range.

Wholesale pricing in other industries works differently.

The wholesale price refers to the cost of a product from the manufacturer or distributor to the retailer. It plays a vital role in determining the final retail price of a product and the profitability of a business.

These prices are generally lower than the retail prices as the retailer aims to make a profit. The difference between the wholesale and retail prices is known as the markup, and it varies depending on the type of product and the business strategy of the retailer. In some cases, the markup may be as high as 100% or more, whereas in others, it may be just a few percent.

Wholesale price in eCommerce and retail​

Businesses operating within the eCommerce or retail space use wholesale prices as a starting point to determine their retail prices. They take into account various factors such as production costs, overhead costs, and market demand to arrive at a price that is profitable while also being competitive. Retailers may also negotiate with manufacturers and distributors to get better wholesale prices, which can help to increase their profit margins.

Another important factor to consider when determining wholesale prices is the target market. Different market segments have different price sensitivities, and retailers must adjust their pricing strategies accordingly. For example, luxury brands may be able to charge higher prices as their target market is willing to pay a premium for the brand.

Wholesale prices also play a crucial role in pricing strategy for ecommerce and retail businesses. For example, businesses may choose to offer bulk discounts to wholesalers, or offer special deals for large volume purchases. This can help to increase sales and drive revenue, as well as attract new customers.

https://www.sniffie.io/pricing-vocabulary/wholesale-price/

Pricing Formulas​

1. Break-even price = Supplies + Overhead costs + Labor​

Supplies: Determine the cost of any raw materials used to fabricate or repair your products.


Overhead costs: Add up all of your business expenses, including rent, equipment, and fees (including Etsy’s 3.5 percent transaction fee, plus any credit card processing fees or PayPal fees).


Labor: Establish hourly wages for you and any employees, and multiply the hourly rate by the time it takes to create each item. When determining your hourly wage, be sure to account for your unique talents and depth of knowledge.

2. Wholesale price = Break-even price x 2 or more​

One way to account for profit when calculating your wholesale price is to multiply your break-even price by a certain amount (often by two). Another option is to add your desired profit directly to your break-even price. With this approach, you’ll need to figure out your desired profit on each sale. Or, if you prefer, you can determine your desired profit for a specific period of time, and divide that by the number of items you expect to sell during that time period. Add that profit per sale onto your “break-even price” to determine your wholesale price.

3. Retail price = Wholesale price x 2 or more​

Retailers who place wholesale orders with you expect to sell your work for double your wholesale price, if not higher. This practice is known as "keystone pricing." Sellers often provide their retailers with a Manufacturer’s Suggested Retail Price (MSRP) that matches this pricing expectation. This markup helps retailers cover their overhead, which may include rent, staffing, merchandising and other expenses associated with brick-and-mortar retail.


Once you start selling wholesale, there is an expectation that if you sell the same goods online you will be pricing at the MSRP or higher, so as not to undercut your retailer. Michele Varian, owner of a brick-and-mortar shop in New York City with the same name, says many shoppers have smartphones in hand as they check out the jewelry and home goods in her shop. “Because everyone who shops in person has access to online shops and prices, price consistency is more important than ever,” Varian says.

https://www.etsy.com/seller-handbook/article/36611398865

 

[equity78]

A solid one word ..com domain (inevitably taken in many extensions) for $50. You serious or joking? The average renewal price is $10 up to $50+ at a few registrars. All domain investors share one common goal, simply to make profit. Preferably as much as possible but another trait is comes with it,is that a fair share of them is extremely greedy,almost about to ask that additional transaction fees plus 1 year renewal included in their $50 for buying a solid one word .com domain. Damn

He is mocking the Domains Wanted section he was not being serious. Well played sir.

 

[Higmathers]

He is mocking the Domains Wanted section he was not being serious. Well played sir.

My bad, didn't even notice since I've come across buy requests or got in a conversation that really asked those prices with several additional requirement and were not joking at all. If I check their profile some of them are not even always new members, but also members that have been around for years that present themselves are real investors willing to buy domain.

Eventually I find out that the serieus and willingly self claimed invesor is only leeching and misusing the purpose of this section. When I came across a similar thread posted about a year earlier. But apparently their previous thread with couple hundreds members sending a DM did not contain a single domain that met their requirements. Right..

As mentioned by @Kyle Tully : Only posting to do market research and gain insights and trends. And that newbie that's not aware of the high value of his domain won't bother the 'investor' to f*ck over the new kid.

So far my thoughts about wholesale prices and buy request that claim to have a budget up to couple thousands dollar for really good domains and let's say $500 for decent domain names but succeed.

It's just frustrating that it ruins what in essence could be a perfect concept to buy and sell domains among domainers...
But it's a known issue what I could make up from your reply. That's nice to know.

 

[equity78]

My bad, didn't even notice since I've come across buy requests or got in a conversation that really asked those prices with several additional requirement and were not joking at all. If I check their profile some of them are not even always new members, but also members that have been around for years that present themselves are real investors willing to buy domain.

Eventually I find out that the serieus and willingly self claimed invesor is only leeching and misusing the purpose of this section. When I came across a similar thread posted about a year earlier. But apparently their previous thread with couple hundreds members sending a DM did not contain a single domain that met their requirements. Right..

As mentioned by @Kyle Tully : Only posting to do market research and gain insights and trends. And that newbie that's not aware of the high value of his domain won't bother the 'investor' to f*ck over the new kid.

So far my thoughts about wholesale prices and buy request that claim to have a budget up to couple thousands dollar for really good domains and let's say $500 for decent domain names but succeed.

It's just frustrating that it ruins what in essence could be a perfect concept to buy and sell domains among domainers...
But it's a known issue what I could make up from your reply. That's nice to know.

Yes it's been known for a long time and as I have written in other parts of the forum and on X. There are several accounts that are posting big budgets that are just looking to see inventory, contact Brent Oxley see if he will buy and then try to do a deal. Brent and I joked there are probably 100 people all looking to try to pitch him names, they think if they see you reply you have a legit one word. com and will take $50K they don't reply to you. Email Brent and say example.com $50K, Brent says sold (rare) he counters (common) or he passes. Then they come back to you like they are the buyer and say "I will give you $30K" You accept we got a deal. Brent buys and he is legit payment will happen. Brent will pay them $3,000 as a buyer broker commission and everything done.

 

[Higmathers]

@equity78 Recently someone that posted a buying requests. Sent him a reply and got a reply back being positive about the domain name as well the price but ended with: 'but let me finish another deal first.'

Think he didn't even noticed that when I contacted him 5 or 6 days later asking whether he is genuinely interested or not and got a reply: 'Let me finish a current deal first .'