(Image source)
(For those who come late, part I and part II are here)
When trying to liquidate via an auction offering, for optimal results, who should you price your items for? Liquidation isn’t about finding end users, it is about moving inventory, preferably quick. End users are hard to find as well as a “hard sell”, they tend to not understand what many of us take for granted, therefore they should not be your target audience when pricing for liquidation. Your target audience should be professional traders, in the case of domains, those who buy and sell domains, those which their business is domains, not one specific domain. So you ask what about end users? Should you avoid them? Of course not. While targeting and pricing for professionals you should also market the sale event (auction) to end users. If they come, if one gets it, the better it is for everyone. It is better for you because you will make more. It is better for the industry as new money comes in. It is better for other professionals as any end user who steps in raises the bar for all, every end user who “gets it” proves that what we all do is in demand, what we do is working.
Pricing for professional traders allows you to move inventory quickly. It does not give you the best buck for your inventory, however, it does give you the best buck for your inventory TODAY. Liquidation is about speeding up a process, a process that when liquidation isn’t needed may take many years to come to fruition, if ever.
In addition, when liquidating it may be OK to take a loss. You do not have to make profit on everything you ever do. The smart traders know when to cut their losses and move on. If an asset continues to drop it is OK to sell, hold on to your cash, and buy later at a lower price. You have to find the balance between profits, losses, and sales. Holding inventory for few years, having your money tied up, is not free. Financial costs are involved, opportunity costs are involved, and more.
When pricing for liquidation you have to look at things a little differently. Since during such times timing is a major issue, your most likely buyer is the one you should cater to. That person, in most if not all industries (when it comes to liquidation), is the professional trader.
Have a great day,
Sahar
Loading ...
Man…..Sahar……that is really a great post.
I find it insightful. Basically it is the mindset of a day trader applied to domains. I never quite thought about buying and selling that way. It makes sense.
I must admit I am one of those that just buy, buy, buy and NEVER sell.
I’ve sold less than five domains since the mid 90’s out of thousands owned.
I’d probably be two or three times as large if I had applied that logic several years ago.
Nice post. One of your best.
Another great post
Sorry to hijack this topic but since it is related to liquidation, I would like to inform about the current domain name auction of FindLiquidations.com on Ebay.
Cheers