OnlineDomain.com Domain Name News & Opinions
Sedo posted an article today about how domain names that are priced with charm prices (e.g. 2,899 or 999) sell faster in Sedo’s marketplace. Sedo also supports it’s automatic price suggestion tool but I find it to be completely useless. There are tens of similar tools around the web and all offer very little to no help at pricing domains. Here are the main points from Sedo’s article:
Though opinions differ on the merits of automatic appraisal services (at Sedo, we believe in the benefits of fast, automatic price suggestions), statistics show that one very simple strategy speeds up sales.
The retail world has known for a long time that using charm prices—for example, $499 instead of $500—increases sales and helps a consumer make a faster purchasing decision.
On average, a Buy Now domain with a charm price will spend 16% less time on the market in comparison to a domain with a round price.
After calculating the price suggestion for a domain based on real sales data, the Big Data Pricer optimizes that suggestion by selecting the closest relevant charm price.
A final recommendation is that our sellers should tailor the currency that they’re listing their domain in to the most likely buyers: if the name is country- or language-specific, then take the price suggestion, convert it into the most relevant currency, and then use the charm pricing principle to make the best of that domain!
You can read the complete article here.
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Sedo at one time had a great way to support domain prices. They simply posted what had SOLD recently listed clearly up front on their home page! That simple process gave a basis and creditability to domain values.
In today’s brick and mortar real estate market, comparisons of past sales determine the selling price. I believe that if the word ever got out to Joe Public about “average” selling prices (as Sedo reports each week) there would be a much better understanding of domain values. Most hard print and online newspapers have a column on best performing stocks or at least some financial news. With over 200 MILLION domains now registered, it’s too bad that domain sales are still missing in main stream news.
You are quite right. Sedo buried the recent sales in a submenu.
I try to report as many sales I see.