Don’t Negotiate a Great Price

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There’s a popular saying that many people believe: “everything is negotiable.” Whether it is an estimate for home improvements and construction, purchases at a farmer’s market, or domain name acquisitions, there are many times when negotiating the purchase price is a good idea. In most cases, the worst thing that can happen is the owner of the company says, “no.”

When it comes to domain name negotiations, people may want to reconsider negotiating when they already see a great price. There may be a high likelihood the buyer opts to increase the buy it now price when a prospective buyer makes an offer to try and buy the domain name for less than the list price.

There have been numerous times where I either opted to raise a price or had a price raised on me when in a negotiation. When I am the seller, I sometimes realizes my prices on GoDaddy and DAN.com do not align, and the inquiry gives me the opportunity to address the discrepancy. Other times, I realized the price had not been updated in quite some time – years on occasion, and the domain name was not priced at the current market rate.

As a buyer, I have made offers on well-priced domain names only to learn that the seller done the same type of price reevaluation. I don’t recall ever being able to come to terms after that, but I have been upset with myself for trying to negotiate a better deal on a well priced domain name.

When I buy a domain name in private, I am paying what I believe is a good price that will allow me to resell it for a healthy margin (depending on the name). Trying to save a few hundred or a few thousand dollars is unwise if I lose a deal. In most cases, that amount is small when compared to the margin I believe I can make.

Negotiating is one of the most exciting aspects of domain name investing. It can be exhilarating to negotiate – almost like playing a sport. However, by trying to negotiate a lower deal on a domain name that already has a great price, there is a good chance the owner will reconsider the price and raise it. I would rather overpay by a bit than lose out on a deal to save a small amount of money.

8 COMMENTS

  1. A few years back I sold a .org domain, two-word, for my asking price of 25k. They first came in with an offer of 10k explaining how they were short on funds. I responded that I was capable of taking a down payment and putting them on an interest free payment plan, but wasn’t going to accept lower for the name. Their IT guy had made the first offer and then the president responded after my rebuttal and paid in full.

    It was a little nerve racking thinking that they may walk away, an adrenaline rush for sure. I rarely get my full asking price, and as I buyer I’ll make an offer on the low side just to see if there is any wiggle room. The important thing is to make the offer if you want the name and see what shakes. This way I get the conversation started and some insight as to where they’re at.

    Negotiating on price can also open the door to joint development and, or diversification of a business line. Negotiating is a close cousin of networking, and with any sales transaction it starts with getting your foot in the door.

    • For me it’s situational.

      On a low to mid tier name I realize is underpriced, I may re-price it. I know it will risk the sale because nobody wants to pay more than what is listed for a domain name, but I may raise the price if it’s the type of name I am happy to keep and is underpriced.

  2. I negotiate high end items like houses, cars but never never on small proprietors like those in the farmers’ markets and those selling on the streets.
    I am so piss when those rich Tourists bargain with those vendors on the beach trying to sell you something when they need money to feed their kids…the ugly rich Tourists!!

    Regards,
    BullS
    MBA,PhD
    Magna cum laude
    Graduate of Domain King Academy

    MBA-My Big Ass(all of you have one)
    PHD-people having dickheads

    • In some countries it is the norm to haggle. Rich or poor everyone is entitled to bargain and I’m betting rich tourists is most of their business.

  3. “As a buyer, I have made offers on well-priced domain names only to learn that the seller done the same type of price reevaluation. I don’t recall ever being able to come to terms after that, but I have been upset with myself for trying to negotiate a better deal on a well priced domain name.”

    //////////////////////////

    A significant chuck of sales will fall apart regardless of your strategy. If you pay the asking price it makes it look like the name was underpriced and the may back out on that basis.

  4. i prefer to engage the expertise of a broker when acquiring domains.
    If a broker contacts me to acquire one of mine, I prefer to do the negotiations myself and will allow negotiations to continue for weeks, months, if necessary.
    I find auctions the most stressful. I thought I had the winning bid on a domain on Sedo over the weekend with less than a minute…then of course a higher bid comes in…so I end up paying an extra 1 K to buy the domain…auctions for any assets always cause me the most stress, prob similar to betting on a sports event…and you never know if the other bids are legit…but those are the risks

  5. agree with steve The ability to wait it out more often than not better price
    and increases the probability to get to the real decision maker in Andrews point
    like that the industry can now offer payment plans, a better position in negotiations
    industry sales comps aren’t very useful given the mix of wholesale/retail and age of results, constant change in momentum of popularity of domain types.
    I use the value of the domain available compared to alternatives available as values often change when momentum picks up in any given industry sector.
    Industry expert/broker for sale comps very useful and easier for buyer to understand and evaluate.

    There has been a few that I regret not paying up for but what is great about this commodity is opportunity is daily.
    auctions. No way to know if that last second bid is legit. certified bidder in auctions is long overdue.
    I perfer buy it now vs make offer. gives buyer and seller a transparent place to start, eliminates low ballers and just about every thing else for sale in this world lists a starting price.
    make offer ? lacks much needed transparancy.
    Great price ? agree. Just buy it. more efficient.
    Cheers

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