I contacted a domain owner about their name and asked them if their domain was for sale and if they had a price for the domain name. I got an email back that said “Not available for under $10 million”.
If you are going to quote a price on a domain name you should start high and this way you have the ability to come down. But when you throw out a ridiculous price like that you run the risk of turning the potential buyer off. I am not writing back to this domain owner. The ridiculous price quote shows me two things… First, the domain owner is unrealistic and more then likely I will get nowhere with them other then have a frustrating few back and forth emails. Secondly, it shows they do not understand the market and they don’t know about (or care about) comparable sales. It can be very hard to attempt to deal with an uneducated owner. They read the headlines that Sex.com sold for millions of dollars and that is their basis for their pricing.
Negotiating is an art, one that very few master and I still have a long way to go in. But what I have found works best for me is when I am able to make concessions in pricing as the buyer feels like he has haggled me down, yet I am still getting a price that I knew all along I’d be happy with. If you’re going to set that first price you need to balance throwing out a realistic number that won’t turn the buyer off and that can also allow the buyer to knock down the number enough to be happy with, while you land in a spot you wanted to land on.