So when is the price too high? We at Vastus Domains have all our after market domain names initially priced at US $97. The reasoning for this is that we use third party registrar and our drop catching software has its monthly lease. Our profit margin is low this however does not mean we are not motivated. Furthermore, we are closely watching our competitors pricing and we will adjust our prices if necessary. Currently we are in the middle to low grounds for the backordering services.
The business model we and most of our competitors employ is a simple one any merchant would. We take our acquiring prices, our running expenses then we add a profit margin. This however is quite different if you are going to sell premium domain name costing tens or even hundred thousand of dollars. In this case there is no merchant bill but more speculative one. Because domain name for end users is an investment.
It all boils down to marketability and brand-ability of one domain name. In cases it is as simple as company name, in others it is a well known shorthand or nick name. In either case there is no real formula to see what the domain name is worth but you can check our appraisal check list to see where one domain can be in comparison to a different one.