It depends on domain quality too. If you're putting effort and money into researching and buying these domains in auctions or from existing owners, you have to make a good return to cover that cost. And the better the domain (one-word, LL, etc) then the harder it is to acquire those domains, the more you need to sell them for. And then once you've sold one, you need to re-invest to put an equivalent or better quality domain back into your inventory. So you have to consider the costs of replacing it as well.
In my experience, I've been better off pricing reasonably high (but not like crazy high) and sticking to the price. I've had 5 and 6 figure sales this year without negotiating down a single penny. On occasion I will negotiate a bit, but most of the time I don't. Yes, I turn down some good offers, and yes. sometimes it falls through too.
For example, I just had an uncommon firstname and surname that was 4-letters that I priced at $10K and got offers of like 1K, 2K, 3K, 5K, 7K and really got annoyed with this person because I told them the price was very reasonable and very firm from the start. Furthermore, they refused a payment plan saying they didn't need it, so I knew this wasn't about whether they could afford it, it was about them being stubborn and wanting some sort of additional discount. And they were a real estate investment company, so they're spending 7-figures on properties, so I figure $10K for your brand name is nothing, especially when you consider the cost over the long term. So I finally gave them a 24 hour deadline stating that the price quote was only valid for 24 hours and would go up after that. The 24 hours passed a couple days ago and haven't heard anything. So if it never sells, some might say I made a mistake. But I also know that if I caved in negotiations, I would also pass up many MUCH BIGGER sales and ultimately lose money.
By not selling a really good domain cheap, I don't have to replace it in my inventory either, so that's a factor. Its about believing in your domain and being patient enough to wait for the right buyer, not just the first buyer to come around. A great domain shouldn't be affordable to anyone, it should be reserved for the right business than can leverage the great domain and understand its value. But domaining is really a volume game. Once you reach critical mass on your portfolio based on both size and quality, then you can get stingier on your pricing. I have enough sales to pay for renewals, make a good living, and still not feel bad about stubborn on my pricing and losing deals because of it.
And I kinda feel like any business should be willing to spend at least $5K on any domain, no matter how crappy, on their business brand/domain name. If they can't afford that and don't see the long term value, then I argue these are people who have a hobby - not a business. Or maybe they have a good local business, but they can't really justify the domain because they're not really an online type of business. It is very rare when I sell any domain under $5K. The last one was a couple years ago from an old listing that had a BIN price set on a platform I was running a test on. I moved the domain off the platform but didn't delete the listing, and it later sold, so I honored the price.
I have a good friend that was a plumber and made good money but didn't want a website at all. His business was all word of mouth and repeat customers. He didn't want more business - therefore he didn't want a website to advertise on his trucks. Not having a website worked for him. So its a good example that some businesses just don't NEED a good domain, therefore aren't willing to pay much for it. Your job is to be patient enough to sell your domain to the right company.
That being said, I'm sure there are people out there who sell cheap domains cheap and make their money on high volume of sales. That may work for some, but that sounds like too much work for me. It may also be a good strategy to build your portfolio if you are taking your profits and re-investing 100% into better and better domains. So if you can average up the quality of your portfolio that way, then that will make sense for some people too.
