You might want to use specific numbers for buy now and round ones to spur negotiations.
One of my favorite newsletters is Science Says, which reviews research related to business and marketing.
A recent newsletter covered a 2018 research paper examining pricing when parties expect to negotiate.
In a nutshell, buyers are more likely to enter negotiations when the price is rounded rather than specific:
You’re looking to rent a venue for your next launch event, and have come across two initial quotes, of which you’re expecting to negotiate down:
- Conference Hall A costing $20,000 for the day
- Exhibition Space B costing slightly less – $19,445 for the day
While the exhibition space’s initial offer is lower, science says you’re more likely to choose the first option, as the first one you will try to negotiate and book.
This makes intuitive sense. If you see a specific price, you think there’s a fancy calculation, and the price you see is the price you’ll pay.
Could this apply to domain names?
I’ve sometimes priced domains with specific numbers, such as $7,642, thinking this indicates a sophisticated valuation algorithm is at play.
But I can see how using a round number, especially for a higher-priced domain in which you expect to negotiate, would make sense.
In other words, using specific versus round numbers can play both ways, depending on how you want to sell your domains (buy now versus negotiation).
On the flip side, the research notes that, once you’re in negotiations, it might make sense to use more specific numbers because the other party will negotiate less.
Source: https://domainnamewire.com/
