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Psychological Pricing for Reseller Market Sales?

Posted on 10 February 2014 by Andrei

When selling to end users, I agree that psychological pricing makes sense. Lots of studies have proven that if you price something at for example $1.99 as opposed to $2, consumers will perceive the price as being closer to $1 despite the fact that it’s actually just a cent away from the 2 dollar value.

When it comes to reseller market sales though, the situation is a bit trickier in my opinion.

Why?

Because your target audience isn’t “consumers” but rather “sellers” for lack of a better term. In other words, people just like you who want to ultimately sell to end users. People who most likely know at least a thing or two about psychological pricing as well.

Therefore, psychological pricing may do more harm than good in such cases, simply because certain domainers might consider that you’re applying an “end user strategy” when negotiating with them and may end up concluding that you’re not giving them a bargain.

Please keep in mind that for the most part, domainers buy from other domainers for one simple reason: because they think that the price they’d be paying is low enough to make the likelihood of them being able to ultimately sell whatever it is they’re buying at a profit attractive.

Therefore, psychological pricing isn’t always the best strategy in my opinion.

When selling a domain on the reseller market, I’d advise against using anything that can be considered an “end user strategy” and psychological pricing doesn’t represent an exception.

Instead, try to see things from the perspective of another domainer. Put yourself in the shoes of the other party and ask yourself: how would you react if someone priced the domain at let’s say $x99 as opposed to $(x+1)00?

You’d know right away that the seller used psychological pricing and would therefore most likely ask yourself something along the lines of:

Am I about to pay an end user price?

Is this really a bargain?

… I’m sure you get the point.

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