If you’ve tried selling websites through a Flippa auction, you may have noticed the Buy It Now (BIN) choice. You may have even used it, but did you use it to your best advantage? On the other hand, if you are a new website flipper, you may have no idea what the BIN is, so here is an explanation.
Basically, Flippa is currently the preferred place for selling and buying websites. It’s the biggest too. When a seller lists a site for sale, he or she can put in the BIN option at any point. If a buyer finds the BIN price acceptable, he or she can purchase the site right away which automatically ends the auction. It may seem like a straightforward process, but what isn’t that simple is using the BIN to strategically to get the best possible profit for your site.
For example, a seller put up a BIN price of $6,500, and a buyer instantly closes the bidding by purchasing the site using the BIN. Seems like each one got what he wanted, right? However, the buyer told the seller after the deal was finalized that he was willing to go as high as $10,000 for the site! Essentially, the seller lost out on around $3,500. So in this case, the seller should have waited, instead of putting up the BIN price too early in the auction.
Lesson learned; but when is the right time really to use the BIN? Take note of the tips below to increase your site’s profitability.
Seasoned website flippers suggest that you use the BIN option when the auction is close to being over. For example, if there is a fierce bidding battle going on between two or more buyers about two hours within the close of the auction then you should put in the BIN price.
A reminder to both pro website flippers or newcomers:: if a bid is placed within four hours before the auction ends, Flippa extends the bidding for another four hours. But some possible buyers could just as easily to leave the bidding having to wait for so long. In the same manner, you as the seller are perhaps raring to have the process finalized as well.
So the wisest move you can do is to set the BIN option slightly over the latest buyer bids. Let’s say the last bid is in the region of $5,000, then set a $5,500 BIN. A buyer who really has his eyes set on your website will take that price. Although the buyer may have to pay $500 more than he was prepared to give, the main thing for him is he got the website and saved time by not having to continue with the bidding battle. Also for you the seller, you now have saved time, and possibly got a bigger profit than you anticipated.
Another scenario where you would need to use the BIN option is when the auction ends within the next 6 to 2 hours. When this happens, it’s better to not wait until Flippa extends the bidding. In order to be certain that you make the sale even on a slow auction, provide a BIN to save time for you and the buyer and just get the site sold. Before deciding on the price of the BIN, look at the latest bid.
For example, if you have 8 hours left on an auction, and the last bid has reached $3,200, it’s safe to assume that the bid may go as high as $3,500. At this point, it would be a good strategy to set a BIN of $4,000.
By sticking to these guidelines and exercising good business sense, the BIN option makes it easy to make more profit when you flip websites.