Are we pricing our domain names wrong? (1 Viewing)


Dec 19, 2020
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Are we pricing our domain names wrong?

$3,000, $2,999, $2,888.

You might see these prices on inventory-quality domain names in the domain aftermarket. Some people round their pricing to the nearest thousand. Others drop a dollar to make it look less expensive. And BuyDomains popularized pricing ending in 88.

But it’s possible that increasing prices a bit might make domains look less expensive.

That’s according to research published in The Journal of Retailing and Consumer Services.

For their paper, Are 1-endings the new 9-endings? An alternative for generating price discount perceptions, researchers examined the use of 9-endings in pricing and compared them to repeating lower digits. Five experiments demonstrated that consumers are likely to perceive multi-digit prices with 1-endings (e.g., $2111) as being more on a discount than prices with 9-endings (e.g., $1999). They’re also more likely to click on ads with the repeating low digit prices.

In other words, you might have better luck selling a domain priced at $3,111 than $2,999.

Thomas McKinlay explained the ramifications in his newsletter.

The research covers items priced at four figures or more, which is the sweet spot for domains. It did not compare $x,111 to round number pricing like the $3,000 example above, but it strongly suggests that pricing domains with low repeating digits in the last three spots could make them look less expensive than charging a lesser amount ending in 999.

I’m going to try this pricing approach, and it would be interesting for people with larger portfolios to try it and share their results.

Are we pricing our domain names wrong? - Domain Name Wire | Domain Name News
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Interesting outlook. Thanks for sharing.
Interesting, I'm willing to try out some pricing like that.

Usually though the issue is the buyer wants to pay $50 and you're asking $2000 or more.

You'd think a real buyer with a realistic budget wouldn't worry too much about the last three digits in a price, but who knows.

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