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We are watching the market and we do believe
that $7.99 is a competitive price in today's market. As a matter
of fact, many wholesalers charge more than us.
Unfortunately, some mass retailers like
www.1and1.com have decided to make a "loss leader" out
of the domain names and they are selling domain names below cost.
Other companies, including Aplus.Net have followed and it is
pretty common now to see domain names sold below cost. Companies
are selling other more profitable products along with the domain
name to make up for the difference.
You should rethink your business model if
you want to sell domain names only at the lowest possible price and
compete with such companies. However, you may consider discounting
your domains below cost too and paying for the difference with
the profit from other products, if the domain name is complimentary to
your other services ( like web design for example).
Another way to look at it is like an extension
of your marketing. If you are paying $4.00 per click at Google for
the keyword "web design" for example, wouldn't you
be interested to throw another $2.00 and to attract those visitors
with a cheap domain name to your service. It is better to spend $6
for a customer, than $4 for just a visitor to your web site.
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