The Great Divide Between a Buyer's and Seller's Perrception of Value?

[moniker]

I don't have much experience buying and selling domains but here's what I feel like from the little I do have.

If you're a buyer: every seller will act like the domain is priceless or next to priceless.
If you're a seller: every buyer will act like it's worthless or next to worthless.

Of course, I understand that this is obvious but I've never seen the divide in perception or expectations or demands greater in any other area. It's almost psychiatric. From what I understood most of it is just an aggressive front in an effort to secure a better deal and greedy market participants are able to get away with such tactics because the value is so subjective and no one can be "called" on their BS.

[cbk]

Nobody has ever been ripped off from the price they paid for their domain name.

[urlurl]

You must keep in mind sellers are trying to get the most for their name and buyers are trying to pay the least,

Also note; domain names are rare and can't be compared to other commodoties and how prices are set, such as on real estate, clothes, cars, etc. - those pricess can easily be set based on supply, demand and competition.

Domains are still bought and sold based on supply and demand, the big difference is each name is one-of-a-kind, so the seller can demand what ever he wants. the buyers only options are.

Buy at sellers price
Negotiate down
Find alternative extension
Find alternative name
Don't buy

now based on how motivated the seller is (usually financial reasons) the seller can

Sell at buyers price
Try to sell for more (possibly loose buyer)
Make no sale

i have been on both sides as a reseller and an enduser buyer - so i can see both sides

[biggedon]

the psych game only works on those who can be psyched

[Adam Dicker]

The buyer sets the price, not the seller.

The seller thinks they do.

Adam

[biggedon]

The buyer sets the price, not the seller.

The seller thinks they do.

Adam

sorry, just can't agree with that

and if you truly believed it, then why you post that you can get more money for sellers if they let you do the negotiating.

[urlurl]

price can be set based on the type of sale

Buy-it-Now Price (set price) - seller sets the price

Auctions - the buyer sets the price (based on how high he is willing to go)

negotiations - price is mutually agreed apon by both seller and buyer

[biggedon]

price can be set based on the type of sale

Buy-it-Now Price (set price) - seller sets the price

Auctions - the buyer sets the price (based on how high he is willing to go)

negotiations - price is mutually agreed apon by both seller and buyer

even in auctions, the seller can set a reserve, which is the lowest amount they will accept and the same can be applied during negotiations.

so, the seller can determine the bottom line.


to "walk and wait" for another buyer is always another alternative that allows the seller to maintain or increase price.

[urlurl]

there is no black or white here - i think the bottom line is who is more motivated - the buyer or the seller

---------- Post added at 03:12 PM ---------- Previous post was at 03:09 PM ----------

even in auctions, the seller can set a reserve, which is the lowest amount they will accept and the same can be applied during negotiations.

so, the seller can determine the bottom line.


to "walk and wait" for another buyer is always another alternative that allows the seller to maintain or increase price.

setting a reserve price doesn't mean the seller is setting the price (the buyers will determone the price in an auction setting) The reserve is usually set at break even or close to.

[Adam Dicker]

sorry, just can't agree with that

and if you truly believed it, then why you post that you can get more money for sellers if they let you do the negotiating.

The buyer definitely sets the price based on what he is willing to pay for a domain.
Depending on how motivated the seller is, they will negotiate the best price they can from the buyer, but that's it.
I have seen $20 domain go for over $50,000 because the buyer wanted it and the seller knew it.
If the buyer doesn't want to pay what the seller is asking, yes then the seller sets the price and will sit with that asset until he gets realistic or drop to a range the buyer likes.

The seller only sets the price when they are not motivated to sell which is what you will see with the Frank Shilling's of the world where it's nice if they make sale but not necessary.
The seller can take control with proper nogotiation and sales skills which most domainers don't have.
Day after day we see domainers prove this and they leave money on the table.

That is why we see so many sellers posting things like wxtx.com - premium domain name, when in actualtity it's just crap.
All domainers think their junk is premium when at best its not junk, but certainly not premium.

Adam

[biggedon]

setting a reserve price doesn't mean the seller is setting the price (the buyers will determone the price in an auction setting) The reserve is usually set at break even or close to.

to me....


setting a reserve at an amount that you are willing to sell the domain for, means you set a price which you will not go below.


if the bids exceed that amount, that means it sold for more than your bottom line


the trick is to never set a reserve at or close to break even, if you expect to profit.

[Adam Dicker]

the trick is to never set a reserve at or close to break even, if you expect to profit.

Setting prices on domains is good for sedo and other marketplaces but not good for the seller, it limits the amount of room for negotiations.

Setting a minimum howvere filters out the lowballers.

Adam

[biggedon]

The buyer definitely sets the price based on what he is willing to pay for a domain.
Depending on how motivated the seller is, they will negotiate the best price they can from the buyer, but that's it.
I have seen $20 domain go for over $50,000 because the buyer wanted it and the seller knew it.
If the buyer doesn't want to pay what the seller is asking, yes then the seller sets the price and will sit with that asset until he gets realistic or drop to a range the buyer likes.

The seller only sets the price when they are not motivated to sell which is what you will see with the Frank Shilling's of the world where it's nice if they make sale but not necessary.
The seller can take control with proper nogotiation and sales skills which most domainers don't have.
Day after day we see domainers prove this and they leave money on the table.

That is why we see so many sellers posting things like wxtx.com - premium domain name, when in actualtity it's just crap.
All domainers think their junk is premium when at best its not junk, but certainly not premium.

Adam

here's how i see it:

$20 domains don't sell for $50K, unless the seller asks for it or the buyer offers that amount before the seller gives a price.


high profile sellers aren't the only folks who know how to say "no" to an offer and walk.


there is a wide range of "appeal" between what one considers "premium" and what one considers "crap"

domains in general don't have to be premium to make the seller a profit, and crap domains have potential to be sold for a profit as well.

BTW: i know it was offbeat example but..... check out http://www.wxtx.com/

[urlurl]

i guess even wxtx had some value, lol

[CureCancer]

the buyers on TDNAM are bidding $5000+ for vjxd.com
- either the buyer is real stupid or just has to much money!

[Adam Dicker]

Good point Biggie, wxtx is definitely not crap.

And people also need to rememeber even if they buy a domain at $8 and sell it for $100 that's a whopping 1250% profit, so trhere is huge revenue to be made off fresh regs.

ADam

[urlurl]

to me....


setting a reserve at an amount that you are willing to sell the domain for, means you set a price which you will not go below.


if the bids exceed that amount, that means it sold for more than your bottom line


the trick is to never set a reserve at or close to break even, if you expect to profit.

it would be great if we could always set a reserve price to include a profit - except auction sites (like sedo) usually want a low/no reserve or will only let you list on auction if the reserve is low and is sometimes below what you paid - and you take the chance and hope the name sells higher.

---------- Post added at 04:16 PM ---------- Previous post was at 04:13 PM ----------

Good point Biggie, wxtx is definitely not crap.

And people also need to rememeber even if they buy a domain at $8 and sell it for $100 that's a whopping 1250% profit, so trhere is huge revenue to be made off fresh regs.

ADam

i have a few this year like that

bought for $xx and sold for $x,xxx

---------- Post added at 04:24 PM ---------- Previous post was at 04:16 PM ----------

the buyers on TDNAM are bidding $5000+ for vjxd.com
- either the buyer is real stupid or just has to much money!

or the buyer's business is called Value John's eXtreme Dishwashers, lmfao

actually - its because it is PR6 - thats why

[CureCancer]

who cares if its a pr6, its a expired .com that has no value

ranks drop over night when their is no content!

[urlurl]

no value to you or me - but maybe to a link builder/seo developer

[Anthony Ng]

Allow me to say this for the 100th time: prices in the aftermarket (of domain names AND real estates AND just-about-anything-else) are determined by two things called demand and supply. Like it or not (and I don't), we are still rotting in Capitalism. It could be a buyers' or sellers' market at times, but it takes BOTH parties to close a deal (sale). It's simply ECON 101, remember?

And don't forget about subsitutability. Yes, domain names are unique (unlike commodities that are mass produced from a mold), but they are by no means "more unique" than real estates or art collections.