Be Consistent with Pricing

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When business is humming along, I have the tendency to increase my prices because I am more willing to lose a less than ideal deal to secure a great sale. When things haven’t been going as well as I would like, my pricing may be a bit more flexible. This is particularly true on the higher end inventory I don’t price unless asked.

Nat Cohen shared some solid advice on Twitter that illustrates why price consistency can be helpful to domain investors. He highlights a recent negotiation he had with someone who had previously inquired about one of his domain names:

One thing to keep in mind is that the domain name aftermarket is dynamic. Valuations change as the market and general economy changes. One word .com domain names, in particular, have sold for higher amounts this year than in prior years. It has also become more difficult to replace sold domain names so I need to maximize sale prices on my best assets. I may have quoted $100k for a particular domain name two years ago but have turned down inquiries and offers in that time that justify a $175k asking price.

That being said, prospective buyers who do not understand the nuance of the domain name aftermarket may think the investor is gouging them because they have built a brand in that namespace. It can be a fine line to traverse.

About The Author: Elliot Silver is an Internet entrepreneur and publisher of DomainInvesting.com. Elliot is also the founder and President of Top Notch Domains, LLC, a company that has closed eight figures in deals. Please read the DomainInvesting.com Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest. Reach out to Elliot: Twitter | Facebook | LinkedIn

2 COMMENTS

  1. Cohen makes fine points, but a seller owes nothing to an unknown buyer or past price of an unsold asset.
    Domains are difficult to price even under the best conditions.

    A seller is most concerned about getting the highest price possible. If yesterday the price was $15K, today $50K, that is the prerogative of the seller. The seller might be wise to buy before the price jumps to $100k.

    Finally, the buyer has the right to find another asset.

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