Earlier this week, I received an offer for a domain name that had its BIN price listed on its landing page. I proceeded to negotiate with the prospect, and I told him he need to come up to a certain number to get a deal done. A couple of hours passed, and I received an email from Afternic telling me the domain name sold for the BIN price, which was lower than the BIN price on my landing page but in line with what I had emailed to the prospect.
I don’t typically have two different buy it now prices for my domain names. I think it is more fair for buyers if my prices are consistent across platforms, and I think it bring up questions if that isn’t the case. It is a case of fairness because a person would be (rightfully) upset if they paid $10,000 to buy a name via Afternic but found out that same name had an active BIN listing on Sedo at $7,000 after they already paid.
When I received the initial offer, I should have first looked at Afternic to see what my pricing was. It would have been more professional to be consistent with the pricing both on my site and on Afternic. We aren’t talking big dollars in differential, but it would have looked unprofessional if I told the buyer he needed to offer $X and the name was listed for half of that figure. Fortunately, the number I quoted was pretty much in sync with the BIN price, so he probably didn’t think about it much. For me, it was a good reminder that I always need to check on my pricing before responding to an offer. I have to assume a prospect has done some diligence before making an offer.
I would also make one additional suggestion. If you receive an inbound offer or inquiry on a name you have at Afternic or Sedo, don’t immediately change the price on the listing thinking you might be able to get more for it. There is a fair chance the prospect already saw the listing and was coming direct to get a better deal. If the price is jacked up, the prospect may question your ethics. Yes, I am sure some would say it is their prerogative to change pricing, but it could easily backfire.
The deal I closed via yesterday was not notable. However, it served as a good reminder to me that I need to keep track of my marketplace listings. Had my response not jived with the BIN price, it could have blown up the deal.
If ya are running different prices should set your prices lower on your own landers and higher on markets that charge a commission.
That makes sense, although it can be tough to track. Sometimes I will change prices on Afternic but neglect to do it on the few I have on my landing pages.
“I think it is more fair for buyers if my prices are consistent across platforms, and I think it bring up questions if that isnt the case.”
Aren’t consumers used to seeing price variation across venues? “Gimme a bottle of water” results in drastically different prices even for the same branded bottle depending on whether someone is buying it at Walmart, at Starbucks, or at Disney Land.
Consumers know about markups. They’re used to comparison shopping online. Even unregistered .COM prices vary depending on which site they use.
I don’t see the scandal. If a buyer asks about the price difference, the answer is: “You’re choosing to buy a bottle of water through Starbucks for convenience rather than planning ahead. They charge extra.”
That’s a good point, but I don’t necessarily think consumers would think like that. That said, most pricing differences on consumer goods is small. I might pay $4.95 for a tall coffee at Starbucks at the Javitz Center in NYC but $2.95 in the suburbs. That $2.00 difference is a large percentage but $2 isn’t going to dissuade me. On the other hand, if a domain name is priced at $12,000 on Afternic but $15,000 on my landing page, that is a substantial dollar amount and I doubt people even think about the different venues.
If I run into this issue again and someone brings up the pricing difference, I will be sure to remember this because I think it is relevant.