Some domain name buyers are more savvy than others. They actually do some research on the domain name they want to buy beforehand. They may use a source like NameBio or GoDaddy’s appraisal tool to find more information about the domain name and it’s value, and they might come across the sale price of the domain name they are looking to purchase.
I recently sent a handful of emails to prospective buyers to try and sell a domain name I had recently acquired. After a brief exchange, the prospect mentioned my acquisition price. I want to share a paraphrase of how I replied without specifics that might reveal the specific domain name:
“In the case of [redacted domain name], had I not done my research and participated in the auction, the price would have been lower. Had [their company] and/or the other companies known about the auction, the final price would have been substantially higher.
Yes, the domain name cost my company [$x] to acquire at auction, but knowing where, when, and how much to bid has considerable value.”
The idea behind this reply is similar to the boilermaker story that has been shared and modified throughout time. To paraphrase, a repair might be minor in nature and seemingly inexpensive, but the boilermaker’s knowledge of how to make the repair is what is invaluable and costly.
Like an engineer whose years of training and experience are what makes their work so costly, my knowledge of domain names is what allowed me to buy this domain name at the wholesale price. Notably, it has been a couple of days and I have not heard back from this prospect.