It Should Have No Bearing On My Post Purchase Attitude…But it Does
I thought I’d share a funny story about what happened today. A story that most of you might be able to relate to. I was happy. I bought a domain I really liked. Successor dot c o m. I am a fifth generation owner of the business and have a daughter that is sixth and hopefully will join the business as well. Succession and estate taxes are one of the most important and difficult things we deal with. I am a successor and loved the name. I saw John Lee had it up for sale at Dnforum and it immediately caught my interest.
Like all buyers I came up with what I thought it was worth. Then I did some checks on Google and Namebio and saw that it had sold for $2600 at Namejet back in the early part of 2012. I figured John had bought it and evidently was willing to take a loss. I felt John had paid a fair price at the auction but considering I may be putting it up for sale I knew I couldn’t pay that price or even within 20%. So I came up with what I thought was a good low price. As he should, he negotiated back and I said no thank you, get back to me when you are interested. The next day he agree to sell it at the price I offered. I’m pretty excited. I like the name, I thought I got a good price and had confirmation that it was as compared to a recent auction. All is well.
Today I get 4 emails congratulating me on the purchase of the name. My first answer was “thank you”. Then I got to thinking. “Hey, I bought that in a private sale, how would anyone even know I just bought it? I haven’t said anything except to one person who I bragged about my good buy” I emailed back Andrew Alleman who was one of the emailers and asked how he knew about it. He said it was on the Sedo/Afternic sales results yesterday. So I took a look and sure enough. Successor sold for $900. A LOT less than what I paid for it. Not half but close. Little ‘ole John Lee acted like he was selling for a lot less but in reality, the person that bought it at auction had taken a bath or some other scenario that would let it go for $900. He actually did VERY well with the sale to me. The reason I got so many emails is that people saw the great price for the domain, looked to see who got it and my name is on the WHOIS. They thought I got it for $900 and were emailing me to congratulate me. What they were actually doing is making me feel like a fool. But why should it?
It does because its human nature to be the person that gets the best deal. When somebody gets a better deal than you it makes us upset. If you bought a Ferrari that last year cost $100,000 and you bought it for $20K you would be excited. That is until you hear that you could have gotten it for $10,000. This is the case here. I had no problem paying what I did. I think I can sell it for more in the near future. It’s a good name. There is history saying that someone is willing to pay more. But there is new history. History that wasn’t public until I bought it. This new history hurts the price and that’s the other thing that bothers me. The public release of the recent sale now adds new price history that reduces its value to the general public. I don’t think the real value went down but now everyone who is interested in buying it will see that sale and think that it must not be worth much more than that because it JUST sold for that cheap.
That’s the good and the bad of weekly sales list. I put them up every week so really have no problem with them. They help us all determine value but also hurt because buyers often know exactly what we purchased the name for. It’s only that this week’s list hurt a little. While it was nice to have people think that I made a hell of a buy, and I still think I did, I just paid a little more than I had to.