One popular newsletter, Science Says, often discusses business and marketing research. A recent edition summarized a 2018 study that explored how pricing affects negotiation behavior.
The findings suggested that buyers are more inclined to negotiate when presented with rounded prices rather than specific, detailed ones. For instance, if given two venue quotes—one for $20,000 and another for $19,445—a buyer is likely to pursue negotiations on the rounded price of $20,000 despite it being higher.
This trend makes logical sense. A precise figure suggests a careful calculation behind it, implying it may be non-negotiable.
This raises a pertinent question for domain sellers: Is it more beneficial to set prices as specific amounts, like $7,642, or round them for negotiation? While using a specific figure might seem to indicate a careful valuation process, a round number may encourage more buyers to enter negotiations, particularly for higher-priced domains.
Interestingly, once negotiations are underway, opting for specific numbers may be smarter, as it could discourage the other party from pushing too hard to lower the price.
Ultimately, the choice between round and specific pricing can influence a seller’s strategy depending on whether they prefer an immediate sale or are open to negotiation.
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