My discussion for Monday’s podcast prompted me to make a pricing change.
My guest on next week’s podcast is Squadhelp founder Darpan Munjal. Darpan shares a lot of data on the show that will be helpful to domain owners. One of these data points led me to reassess my domain prices this week and change prices on about 50 domains.
Squadhelp evaluated pricing domains just above “psychological thresholds,” such as $5,000 and $10,000.
Squadhelp’s data show sell-through rates drop significantly when domains are priced just over these thresholds. Perhaps it’s because buyers have approval to spend up to these numbers or because they can’t psychologically exceed these thresholds.
Squadhelp saw a 35% drop in sell-through rate between domains priced $4,000-$5,000 and $5,000-$6,000. It saw a 15% drop for $1,000 either way of $10,000, and an 11% drop at $25,000.
He shared some of this data on Twitter earlier this week.
Darpan pointed out that you don’t necessarily need to lower your prices below these thresholds. But if you’re just over the mark — say, $5,200 — then it probably makes sense to either drop the price below the threshold or increase it rather than leaving it right above the threshold.
I had about 50 domains priced within a few hundred dollars above these thresholds. I adjusted most of the prices down, but some up. I had priced some of these at $5,111 based on this study. But given Squadhelp’s data, I decided that for domains priced just above $5,000, it makes sense to adjust prices.