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.