Today I did some online research and found a company that has a gigantic inventory of domains for sale, all of which are dot com domain names. So, I thought I would compare some of my local domain prices with those of one of my competitors. Before we go any further, I want to make it clear that I have done my homework regarding the sales price of comparable domain names and what they sold for in the past. By the way, these domain names are called “comps” in the domain flipping industry.
Domain Names In the City + Accountants dot com Format
Let’s look at the domains in the US that have been sold with the following format: City + Accountants dot com. An example would be: CharlotteAccountants.com. Based on my research on NameBio and on GoDaddy, at some point in the past, CharlotteAccountants.com sold for $1,461.00. Keep in mind that this is the most ANY domain with this City + Accountants format has sold for in the past 20+ years in the US.
Was This Company Significantly Overcharging for a Domain Name?
What am I getting at? My competitor was selling a domain name in the City + Accountants format for $2,895.00. If this domain name was ChicgoAccountants.com or HoustonAccountants.com, then the asking price for this domain name would have made some sense. However, this was NOT a domain name for a well-known city. In fact, the city for this domain name is not even close to being one of the top 500 most populated cities in the US.
Possible Price Gouging?
My point. By all available “comps” analysis, there’s no way that this company can justify selling this domain name for anywhere close to $2,895.00. Especially when it is pointed out that the asking price for this domain name is almost twice as much as ANY domain name in the City + Accountants format has sold for in the past 20+ years. Can you say possible price gouging?