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My discussion for Monday’s podcast prompted me to make a pricing change.A price tag with $4,999 on it
My guest on next week’s podcast is Squadhelp founder Darpan Munjal. Darpan shares a lot of data on the show that will be helpful to domain owners. One of these data points led me to reassess my domain prices this week and change prices on about 50 domains.
Squadhelp evaluated pricing domains just above “psychological thresholds,” such as $5,000 and $10,000.
Squadhelp’s data show sell-through rates drop significantly when domains are priced just over these thresholds. Perhaps it’s because buyers have approval to spend up to these numbers or because they can’t psychologically exceed these thresholds.
Squadhelp saw a 35% drop in sell-through rate between domains priced $4,000-$5,000 and $5,000-$6,000. It saw a 15% drop for $1,000 either way of $10,000, and an 11% drop at $25,000.
He shared some of this data on Twitter earlier this week.
Darpan pointed out that you don’t necessarily need to lower your prices below these thresholds. But if you’re just over the mark — say, $5,200 — then it probably makes sense to either drop the price below the threshold or increase it rather than leaving it right above the threshold.
I had about 50 domains priced within a few hundred dollars above these thresholds. I adjusted most of the prices down, but some up. I had priced some of these at $5,111 based on this study. But given Squadhelp’s data, I decided that for domains priced just above $5,000, it makes sense to adjust prices.
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Rick Schwartz says

It is interesting data but here is my problem with it and why it does not mean much as presented but means a LOT if you look at it in a different way.
It does not take into consideration the quality of the domain name. It does show that most domains sold on the platform are simply mediocre with limited potential.
It’s more of an indicator of overall quality of domains that are listed has opposed to the “Sweet spot”.
If you have a high end 6 figure car for sale do you put it on a car lot specializing in clunkers? In cars selling for $5000? So that is MY takeaway.
Jay says

thank god you are here DK
why even get in the domain business if all you want is 10 grand per domain. we are not selling cardboard boxes. each asset is unique and each price is unique. hey rick use this model to sell for 8k. its time for domain investors to think big not small,
Michael says

Hi Rick, would you be interested in buying any of my quality unique name domains…Thanks, Michael
Mark Thorpe says

Sounds like common sense to me.
Squarely says

Squadhelp needs a better domain name, does not pass the radio test , keeps hearing squat help..people needing help to squat for a better position to poop
fake data…base on what?
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