Reseller Pricing vs. End User Pricing is the most rediculous thing I have ever heard

[EBORG9]

I see many threads where people stipulate that they are looking for "reseller" pricing and not "End User" pricing.

What is the difference to me how you want to use the domain? As far as I'm concerned if you want to purchase it, YOU ARE the end user. What does what you want to do with it have to do with the price that I am asking?

If I have a domain and I price it at $50 ( for instance). That's the price.
Is there some unwritten rule that I'm supposed to accept less for it simply because of your future plans for it?

If I am missing something here please educate me and clear up my confusion.

 

[Michelle]

Good question

The way I see this and it is just my view

The reseller buyer does not always have an end user target I.e does not always want to keep the name or has no wish to develop it so.. they may wish to purchase the name and .. resell the name so.. they are looking for a lower price as they would also need to make a profit to resell on

or..

A reseller may have contacts already that you may not have so he/she would purchase a name from a domainer and already have information or contacts to resell and make a profit that the origional owner does not/never would have.

You have the end user that really wants the name has a very clear view of what they want - do not wish to resell and will use this as this fits what they are looking for so will pay more to secure this name.

 

[Archangel]

MM said it pretty well. The idea is more or less that if a domainer wants to buy a domain for reselling, they'll want to make a profit, thus $50 would be more than an investor would be willing to pay if he/she couldn't foresee selling it fr much higher.

 

[EBORG9]

In other words, they want to get it for cheap from people who don't know any better so that they can make a profit on it.


That's exactly what I thought and I can't believe that people fall for it. Even funnierI can't believe people actually put it down as if it's going to change the asking price.

 

[Archangel]

Sorry but you are mistaken. Domainers do not ask for 'reseller' prices hoping the owner is oblivious to a value. There are some who do but the consensus is simply to get a domain off anther's hands for cheap so as to get a better profit from it.

Otherwise, we don't screw ppl over. Perhaps this is what you do but it's not a reflection of the collective mindset of domainers.

In other words, they want to get it for cheap from people who don't know any better so that they can make a profit on it.


That's exactly what I thought and I can't believe that people fall for it. Even funnierI can't believe people actually put it down as if it's going to change the asking price.

 

[bmugford]

Reseller value vs End User is

1.) Capitalism
2.) Supply & Demand.

It is basically the same principle of any for profit industry (Cars / Homes / Jewelry / Food / etc). There is a wholesale cost (reseller) then a secondary market cost from the people who are interested in those items/services.

Since all domains are one of a kind, there is no clear price guide for each domain which can create a huge margin between reseller and end user value.

As a domainer a domain might only be worth $100 to me, but if I am an end user with a plan it might be worth $3000.

Brad

 

[glaxxon]

No one is forcing anyone to reduce their prices in the name of reseller pricing. Its just a polite way of conveying to the other domainer "I am not an end user. Give me a nice offer, else i'll find some other name. So if you are looking to sell it off and get some return then give me a discounted price or you can just wait forever for your end user. "

 

[DU]

Reseller value vs End User is

1.) Capitalism
2.) Supply & Demand.
...
As a domainer a domain might only be worth $100 to me, but if I am an end user with a plan it might be worth $3000.

Brad

Almost.

It's not about worth it's about how much you can induce from someone.

To me - reseller prices says "Not your top tier domains... or stuff you have that you don't think you can get rid of yourself":sold:

 

[Michelle]

Also the domainer may have no need/reason/time or finance for keeping the name once renewal comes up and does not wish to pay to renew so selling to another, that thinks they may have a idea of using or finding an end user will give them at least some money back instead of just dropping.

Also selling the name to another reseller does not always mean the name is bad. Selling it may just give another either a chance to use it or try and resell themself.. Just because you could not find and end-user for this name does not mean another domainer with different ideas/contacts can't

And for financial benifit it is always better to get something for it rather then dropping and getting nothing.

 

[Sparhawke]

For the opening poster, everything is up for negotiation with domains, finally we have a system when people who can talk to people and find people to sell to without having some major corporation fucking it up.

Do you really want to end up with domains being sold off for $19 a time rigidly with no way to get it to move up or down?

This is what you are in effect asking for, you are asking for set prices on domains and when that happens you are asking for the likes of Godaddy to raise their prices again.

If you have exhausted all your contacts and are facing having to drop your domain then why not pass it along to another domainer for at least some profit who might have better luck and ask him for any deals in kind if they are having trouble?

The whole idea of a barter system that domaining effectively has is to network, so get to know these resellers and don't insult them...they can be the best of friends or the worst of enemies if you do not approach it right

I have a few domains right now I am having trouble with and would gladly sell them off for $20-30, even though they are worth much more than that. Paypal won't accept payment though right now

 

[garptrader]

I saw a thread where someone is looking to acquire domains with a minimum search volume. I responded. Now, understandably they are a domainer who buys domains for resale and thus have to acquire such names at a low enough price so that the risk of not being able to resell plus the work involved in attempting to find an end user is worthwhile. Of course when I receive the response expressing interest in a few of my names with, "What is the lowest price you are willing to accept for these names?" the natural reaction is to not reply because it is apparent I am not going to receive an acceptable price. But there is nothing wrong with their approach. They can provide immediate liquidity when I perhaps don't have the time to market every name in my portfolio. And how often do we send out emails on what we believe are solid names to see no response from end users?

 

[clarew]

thats the norm on forums.

Why do you think Sedo gets all the business even after they get bad mouthed everywhere. They got the end users.

 

[stingrae]

Resellers provide liquidity to an otherwise extremely illiquid market.

They are invaluable to the domain name ecosystem.

Nobody is ever forced to sell a name so I don't know why you think they need to be disparaged. Everybody here is trying to make money by buying and selling domains.

 

[EBORG9]

Almost.

It's not about worth it's about how much you can induce from someone.

To me - reseller prices says "Not your top tier domains... or stuff you have that you don't think you can get rid of yourself":sold:

Now this makes more sense to me. Because if I am selling the domain, everyone is the end user.

That notion of "sell it cheap or wait forever" is a pretty arrogant way to look at things. Just because I don't sell it to you doesn't mean that it won't sell.
Obviously no one holds out for their price on a deadline.

I guess this would all be subject to who the seller is. If domaining is your full time job and your main source of income I can see bartering, trading, flipping and selling cheap just to move product.

"Reseller" pricing to me means, "Give me the stuff that you will let go for cheap".

I started this thread because I was contacted about a domain and the person replied to me that they were only looking to pay "reseller" pricing and to adjust my price.

I thought that was a little arrogant, after all they contacted me..so to me they are the end user. I'm not against negotiating a fair price but I kinda figure if you ask me and i tell you and you don't like the price...that's pretty much it. I don't have another price that is so drastically different just because you say that you are not an end user....it doesn't matter anyway.

 

[Archangel]

I still go by what I say but if it's your domain, you have full right to tell the potential buyer to up his price or to walk away. I have a few left in my portfolio that I wouldn't sell for 'reseller' prices. I need a $xxx or higher offer or they're not going anywhere. And as the owner of the domains, I'm entitled to deny any offer. You have that entitlement, too, just as all domain owners do

I started this thread because I was contacted about a domain and the person replied to me that they were only looking to pay "reseller" pricing and to adjust my price.

 

[garptrader]

When you have an offer that obviously is from a true end user, one has to be careful about getting greedy as for any particular domain a competitive offer is relatively rare. On the other hand, when you receive $100 offers for solid .COM domains there is no reason to accept the reseller's need for lower pricing. At less than $10/year you can probably wait for a decent offer. Buy low sell high...

 

[liquidcherry]

I have a few domains right now I am having trouble with and would gladly sell them off for $20-30, even though they are worth much more than that. Paypal won't accept payment though right now

PM me the list

Cheers

Liquid

 

[Domainate.com]

Sales happen with the intersection of value to the seller and value to the buyer. Value to a buyer whose sole intention is to try and sell it for a profit is going to be lower than the value to a buyer who sees the domain as the home of their online business or otherwise playing a vital role in it. The reseller will only be making a one-time profit (albeit a profit they then reinvest into more domains, make more profit, etc.) vs. the end-user getting a recurring revenue source from the online business they've built on the domain, with the domain's quality potentially being a major contributor to how well that business does.

If you don't want to sell domains for reseller prices, don't sell to resellers, period. No reseller is ever in the business of paying low end-user prices to try and sell domains for higher end-user prices. That said, there's high reseller and low reseller as well...I myself do not sell ANYTHING under $50, and even $50 is a rare case, usually only with bulk deals or in very limited-time sales. Some people however are happy to sell domains for $10-$15 dollars, and many buyers only buy domains for that or less. Great for all them, but I have my pricing limits and I sell plenty at the prices I seek which includes end-users who buy names at my retail prices, so it works for me.

As a buyer, I look for the best deals for me. If it's a domain that I intend to use, while I may look for a good deal, I will even consider paying end-user prices for domains I feel are excellent for what I need. I do that because it's WORTH IT...if I'm going to develop a serious business, I feel I SHOULD get the best I can get and care more about quality than getting a good deal, and I think that's what most end-users are thinking...or at least the ones savvy enough to be looking to buy on the secondary market v.s register whatever's available. Resellers on the other hand need the good deal because more than likely, their intent is to provide a good enough deal to another buyer of it that will get them a good enough profit for the flip to be worth it. So price levels are different because the focus of the buyer is different.

The main issue for all of us is that unlike the end-user market, the reseller market is easier to reach and sell to...we're all here, DNF, Sedo, etc. Hopefully sometime in the future, the end-user market will be that way too, but as it is you have to hunt down potential end-user buyers and hope they'll buy and/or list-n-wait.

 

[Dotmainer]

You can compare it to car-sale.
- You dont sell everyday 10 cars
- Maybe you sell one a week but for a better margin

- If you want to sell it quicker, you can go to other car dealer and sell it there, but he would not pay you "end user" price




(Sure there are other car dealers who sell more cars, but cheap ones = domain flipping)

 

[the_poet]

The way I see it, endusers are domainers' only target and ideally every domainer's sale should to endusers. The problem is sometimes domainers have names for which they simply have no plans/time for developing or selling. So they have two choices: they can let them drop or try to recover some money by selling them to resellers for a cheaper price (domaining communities like NP are perfect for this).

 

[Spade]

Brad touched on my point.

Reseller = Wholesale
End-User = Retail

A Reseller will not pay the full potential value of a domain name because they will at some future point, resell the domain name. Typically, a reseller must make a reasonable margin, and due to risk involved in each acquisition, will attempt to get a domain name as inexpensively as possible.

An End-User or Retail customer, is willing to pay more because their intention is not to just resell the product. They will be using it for an intended purpose and thus dont have to worry so much about the margins we are discussing.

Justin

 

[EBORG9]

I can understand all of the points here. I guess the bigger difference is not just who is buying but who is selling.

I have the same price for everyone since I'm don't need to sell any of them. So I don't have a whole sale price and a retail price since I am not a whole seller.

I don't see a buyer and think "Payday" because technically, I'm not a domainer. I just have some because I like developing my own websites.

But there is a fine line between a reseller and a broker and actually, there is no way to know who is which. I used to work for a very large domain holder and I know there are a ton of scouts and brokers out there that want you to think they are resellers, when they are actually the go between for an end user...I mean none of us are stupid. That's why I don't subscribe to the notion of separate pricing just based on what someone say's they are.

I know. I did it.

In other businesses, you are licensed as a whole seller or retailer, in this one you are supposed to just take someones word that they aren't a broker?
I don't see it.

 

[DnEbook]

agreed = wholesaler to wholesaler opposed to retailer

seems you were contacted by a 'wholesaler'