Why many Domainers don't have a fix price?

[GiftedDomains]

I experience this a lot.

For instance i am looking to buy a domain and mention my max. budget and ask for offers with price.
Nearly all offers are priced with my max. budget.No matter what quality the names are.
If i don't reply for a week or if i reply that the price is way overpriced, i get another offer for the same domain for 1/10 of the price.
For instance first offer 500 dollars. Same domain a week later 50 dollars.


Why are many Domainers so uncertain about the price and why do they want to suck you dry once they know you want to spend a certain amount?

I decided not to be honest anymore and even if have a larger budget, act as if have no more than xx budget.
I am pretty sure i receive the same domains with lower price.
I am not talking about premium one word names, etc. but the mid quality names.

It would be no problem to start with a price and lower it again and again until someone buys it, but i think that most domainers have no idea about the approx. market value of their domains. I know its difficult to price domains, but at least sit down and examine the market, past sales, etc, and price your domains with a realistic approx. price based on certain factors

That is one think i don't like about this biz.

 

[xtmoney]

very valuable post on right exactly i think.
I think the same like you.most of domainers sell domains bellow the price of niches/market.Maybe they have some reasons for that.

 

[alien51]

why do they want to suck you dry once they know you want to spend a certain amount?

That is one think i don't like about this biz.

Well, that's not really unique with domaining. It happens all the time in flea markets.

I don't know if flea markets are commonplace in America. But in other countries, they do the same thing.

Tried buying a Turkish carpet in a flea market in Istanbul. You ask, "How much is it?" Merchant answers:"$80 dollars". You start to walk away. They chase you and say "Ok, $60 dollars!" You say, "Too expensive". Then they will finally counter: "Well, how much do you got?" "I only have $30 bucks in my wallet." "Ok, fine, $30 bucks will do."

Carpet sold.

 

[Dave]

I'll be honest here and be the first to hold up my hands and say I am guilty of this myself. In my opinion by putting up domains for sale with a 'make offer' tag were all hoping to attract the best price for our domains and to gauge market interest and value. The big problem with this approach is it usually leads to a lot less interest in said domains.

I think in the near future I will adapt a fixed price strategy on all my domains because during May I had around $1300 in sales through fixed price but $0 in offers. I think Sedo hit the nail on the head by highly recommending setting a BIN on our domains.

My aim in the near future will be to setup a sales platform for my domains with all of them fixed price and by integrating with Transact.com's API will be able to offer them straight for sale without hassle.

Regards,
Dave

 

[PNW]

I've seen the flip side to this many times. Buyer states budget in high $xxx or low $$$$ and doesn't even spend $xx on domains that meet the criteria. This leads me to believe they do not in fact have the budget stated, are fishing for domain ideas, drunk or loaded or just wasting everyone's time.

On the other hand, I may have a domain listed for sale for $1000. Maybe this domain cost me $400 - $500 in trades to obtain or cash equivalent. You come in and offer $200 and depending on who you are and what my current interest is I may sell it to you for that price on that day. Lollygag and not move to completing the transaction and you don't get the name for that ever and in most cases it will either be for my original price or more for being a pain.

I know its difficult to price domains, but at least sit down and examine the market, past sales, etc, and price your domains with a realistic approx. price based on certain factors

That is one think i don't like about this biz.

All of what you state takes time including the time to negotiate. That time is money and I do not work for a couple of bucks an hour. If a trade was offered that I believed covered my time and investment then I'd most likely go with the trade.

Anyway, when you have a larger budget I think you would be better off directly contacting the owners of the terms/market you're looking for. Waiting might help as well. Like when I waited for a domain that I inquired about and received a quote for $5K. About six months later I backordered it after seeing it was dropping soon and got it for about $50.

 

[Name Trader]

I agree with Sedo. It's much better to have a domain priced. But of course most of mine are make offer. Something I intend to fix in the next year

 

[bulkdomainz]

I prefer not to have fixed prices on my domains so as not to put potential buyers off. If a buyer can afford to pay xxx for a name, I do not wish to undercut myself by fixing the domain at xx. We know how things work in this market ... You usually do not know what the budget of the buyer or who the 'real' buyer of the name is. The person negotiating with you may have a Client willing to pay xxxx for the name while he's offering you xx (and dissing the name while he's at it ).

I got an offer on one of my unpriced names for $100 and ended up selling it at $xxxx. How would you feel if you priced a name at $100 and the buyer flips it next day/ next month to somebody else at $xxxxx (some of those stories appear here on NP).I know this doesn't happen everyday but I guess it is still up to domain owner to let his domain go at a price he is happy with. That way, even if the name is flipped at 10 times the price he sold it, he'd still be happy with his sale price.

My sale approach is 'Make me your best offer and let us start negotiating from there'. I think we'll both end up at a price we both kinda can work with. I have had people pull out of negotiations because they don't want to start this way but I really do not wish to state an offer that may be too high or too low for the buyer's budget. I have had people offer xx and pull out when I counter-offer xxxx. Some can't even be bothered to haggle. Some are so rude they'd go post a WTB instead of making a counter-offer when you give them a 'negotiable price' when they ask you about the price for a name and refuse to negotiate when you invite them to do so. The right buyer will come; it's only a matter of time.

IMHO, the domain market is NOT a Superstore where everything has a fixed price and haggling isn't allowed (You can get away with haggling in Supermarkets these days even :blink. An unpriced domain is an indication that the Seller is open to negotiation and is being cautious about underpricing or overpricing the name.

 

[lennco]

Well, that's not really unique with domaining. It happens all the time in flea markets.

I don't know if flea markets are commonplace in America. But in other countries, they do the same thing.

Tried buying a Turkish carpet in a flea market in Istanbul. You ask, "How much is it?" Merchant answers:"$80 dollars". You start to walk away. They chase you and say "Ok, $60 dollars!" You say, "Too expensive". Then they will finally counter: "Well, how much do you got?" "I only have $30 bucks in my wallet." "Ok, fine, $30 bucks will do."

Carpet sold.

Its funny you mention that.
For years I would sell As Seen On TV products at Swapmeets and Home Shows years ago.
I was what they call a Barker.

And those sellers who did not have set prices on their merchandise would size a customer up when they walked in to their booth and quote a high price at first and as you said they would come down on price when a customer would start to walk a way.

I always had set prices but then customers would then make a low ball offer and try and get you to come down.
So it works both ways.

Also another example are Timeshares.
I went to a timeshare meeting in Hawaii once where they try like hell to sell you a timeshare and there were over a dozen potential customers and each of us had our own salesman trying to sell us a timeshare.
At first the price was $14k and it was for two weeks a year and the timeshare was based in Hawaii on the big island.

I first said no, so he dropped the price to $12k
I then overheard the couple next to my table agree to pay $12k with their salesman.
My salesman then dropped it to $10k.
I kid you not, the more I said no the more he dropped the price, $8k, $7k, $6k.
Until I said NO! I dont need it. (I only went because they gave me half off all my activities while I was in Hawaii)

As I got up to leave he said OK! how about $3k for everything?
I still said No!
As I was walking out the door he said, how about everything but for every other year for just $1800?
I laughed and still said no and said goodby.
So the couple who paid $12k could have got it for $3k if they had waited.

So if you are looking for a timeshare say NO! You will get a better deal

 

[Name Trader]

My sale approach is 'Make me your best offer and let us start negotiating from there'. I think we'll both end up at a price we both kinda can work with.

If they make you their best offer, there is nowhere else to go

 

[bulkdomainz]

If they make you their best offer, there is nowhere else to go

Not everybody gives you their 'best' offer the first time! No way I'd put forward my 'best' offer first when trying to buy a name when it's very likely the Seller will want to get 'a bit more' out of you. Why offer someone xxxx in the first instance when you could likely get away with xxx or maybe even xx? Why do people start auctions at $10 and end up paying $xxx in the end? Every smart buyer wants to get the item for as cheap as they can get away with.

 

[Name Trader]

My best offer is going to be $xx - $xxx until the seller gives me a price. Why would I want to be negotiated up to an even more outrageous price? (I'm not good at being an end-user).

 

[Sam]

i think its because we all want to hit that elusive big hit sale. The "end user". Often times the domain's value all depends on the buyer. Many times their budget exceed what your reseller value is.

 

[domainbartender]

When I respond to "Domains Wanted", I often set my price as the max. price because the fixed price I have in mind (and have set long before responding to the OP) is much higher than what they can afford but I need money to pay the bills and hence am willing to sell it at what they can afford just this once. It's not because I don't have a price in mind, it's because my price is too high for you to afford and I have to bring it down to your budget to make a sale, so I can pay my own bills with the proceeds.

 

[Name Trader]

I did this myself just this last week to an inquiry I'd had because I hadn't sold anything for a while. Got to keep that cash-flow going.

 

[Mr_Kumar]

I love this thread. Much insight of market. Thanks to all of you.

I'll like to share my mindset on selling (domain or anything). I prefer fixed price based deal with +- 10%. I provide services, and my charges are approx 3 times of my co-providers. Those who know my work, buy my service regularly. And those who don't know... query me on higher price. It is then my responsibility to justify the price.

With domains... definitely I'll pick fixed price based route. Reasons are (a) Both me and buyers will not scratch head over price in negotiation... making deal faster, (b) profit calculation will be upfront (even before buying or registering domain for myself), (c) selling more number of domains in a month means more profit, and (d) with the time I'll be know to buyers for my fixed price selling, and buyer will be put much pressure on their head for price.

Feeling like ... how one will feel if his buyer flipped domain for 10 times higher price does not belong to those who are professional in domains. They look at their inventory and monthly profit only. Such feelings may prevails with occasional sellers.

Thanks a lot once again to such a nice discussion here.

 

[GiftedDomains]

What do you mean with "service" when you talk about selling domains?
Personally i don't need any service, just the domain to be pushed or transfered to my account.

 

[ioana_bv]

I don't do that. I usually ask for a price lower than the budget

 

[Mr_Kumar]

What do you mean with "service" when you talk about selling domains?
Personally i don't need any service, just the domain to be pushed or transfered to my account.

I know you are talking about domains. But you are talking of another thing... how people behave (act) while making a deal. I talked about services, as I am quite experienced with services and I was talking about how I behave (act) while making a deal. Thats it, nothing more than this.

 

[GiftedDomains]

ah ok, now i understand what you mean.