One of the neat sales tactics offered by Squadhelp is the price increase notification sellers can add to their landing page. Sellers who utilize this tool will show a message on their landing page that informs visitors the price will be increasing. This is a smart tactic from this innovative domain sales platform.
While I have not used Squadhelp, I agree that this can be a smart tactic. In fact, I manually use a similar tactic in my negotiations with prospective buyers. When discussing the price of a domain name, I will say something like this:
‘I believe the price of the domain name is currently below market value. I expect the price will increase very soon.’
Sometimes I will immediately reprice the domain name and other times I will go back and reprice it at a later date. If I reprice the domain name immediately, I tend to make a counter offer at close to what the BIN price had been. I feel like that at least gives the person an opportunity to buy the domain name where it has been. While I could simply increase my price and not allow the buyer this chance, I think that tactic would be harmful to a negotiation.
As I’ve said in the past, offers are an opportunity for me to reconsider the price of a domain name at that time. Sometimes a domain name was priced too low, and I am given the opportunity to raise it to where it should be priced. Letting the prospect know the price is going up is a good incentive to pull the trigger on a purchase immediately.
SH automatically increases the domain price if AI detects there is enough interest. Extremely smart.
The bad thing about raising the price is that if you want to lower it in the future, you will transmit weakness and failure.
I have closed a few sales at full price with similar respone. I have also lost a few sales, so still unclear whats best.
More than a few brokers are resorting to this tactic and yielding pitiful returns for their effort. I’ve had a few double the price twice over a six month period after I checked on the pricing. Needless to say both the domains and the brokers were instantly registered on my black list.
There is probably a greater likelihood of success for someone who really wants – or needs – a specific domain name.