Earlier this week, I received an offer for one of my domain names via broker. The domain name was listed for sale with a BIN price, and the offer came in at a little more than 50% of the BIN price. Not only did I pass on the offer, but I opted to raise the BIN price.
When I buy an inventory-quality domain name and decide to list it for sale, I generally set a BIN price based on how I feel at that time. I don’t spend as much time as I should repricing this inventory. Once in a while, I may see a name or two and opt to reprice them, but in general, my pricing stays pretty consistent.
When I receive an offer for a domain name, it is then that I pay more attention to it. At that point, I may come to the realization that the price is too low and raise it. The price increase is typically modest, but I want to ensure the price is in line with my own valuation at that particular time.
It is wise for domain brokers to warn their clients that an offer below the BIN price may cause the domain name seller to increase the price. This is not always the case, but when I think a domain name is underpriced or I am not in a selling mood, I will definitely consider raising the price in the middle of a negotiation.
That being said, if the broker comes back with an offer that is equal to the previous BIN price, I would certainly give strong consideration to accepting it. I think the perception can be that it’s an asshole move to raise a price like this, so if the broker is able to convince the buyer to pay the previous asking price (within a reasonable amount of time), I would probably accept it. That is how I would want to be treated if I was on the other side of the table.
Very good point Elliot.