How many of us have lamented the fact that we receive enquiries on individual domains while the great majority of our portfolio seems to just be a great big cost? Is there a way to swing this situation around? Yes, there is and it’s called bundled pricing.
Bundled pricing is taking a desired product and making it for sale with something else which you may have had trouble selling. The average sales value is increased at little to no additional effort in the sales process. This is a strategy that many corporations use to sell us things we really don’t need so they can continue to move products.
A classic example of this is the sale of the “Big Mac Meal”. Do you really want fries? You don’t actually but it’s just so easy to add a few cents more and get an entire “meal” rather than buying a Big Mac and coke separately. In the process, McDonald’s has dived into our wallets and pulled out some of the loose change.
I’ve always wondered why McDonald’s sells a Big Mac, Coke and Fries together. I’m sure they’ve done a lot of research on the topic but I would have thought that a Big Mac, Fries and Apple Pie would be a much better combination……after all, everyone will buy the drink anyway.
This brings up an interesting point. If you wish to extract additional value, then bundling products together is not as easy as it first seems. Sometimes the obvious bundle is actually not obvious at all.
Let’s imagine you were after bingonight.net (one of my domains) and offered $8K for it. I could say yes and the deal would be done. Or I could tell you that the domain is part of a bundle of five bingo related domains that I’m selling for $12K.
All you were originally after was bingonight.net but now I’ve just told you a number of things:
1. I have more bingo related domains.
2. You can’t get bingonight.net by itself.
3. I’m getting these other domains for half price!
4. I'm also telling you that I'm the place to come to for domains in the future.
Suddenly we are having a much larger conversation than just purchasing a single domain. From my perspective, while I’ve now turned a $8K sale into one for $12K. This works for the both of us.
I could have bundled bingonight.net with an aviation domain a couple of Indian domains and a Spanish domain. This would allow me to move unsold inventory but rather than enhance the sale it would potentially turn off the buyer. Like McDonald’s and their meal deals, picking and choosing your bundle is critical for a successful outcome.
At the price levels of stock items, every enquiry should be viewed as an opportunity to sell not just one domain but a bundle of domains. Even if you have to discount a little the overall revenue line has increased.
When you look at your portfolio it’s often the traffic domains that bring the sales enquiries and the domains with no traffic that are of higher value. So bundling both sets of domains together brings potentially brandable domains and traffic together…..which can often sweeten the deal for the buyer.
The challenge here is that many of the marketplaces don’t allow a bundling strategy and deal with domains on an individual basis. More on this in another article….