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Prices, Gouging and Haggling for Internet Domains?
GregStevensLA asks: "I'm considering paying for a 'premium' domain name for a small web start-up I want to form. The company that currently holds the domain name is offering it for $1500, but they made it clear to me that they expect a counter-offer and are 'willing to make a deal.' I've never done this before, and I have no idea what a reasonable counter-offer is. If I say 'I can't go above $1000' am I being too easy? Should I try to push for lower than that? My understanding is that these prices are hugely inflated anyway (i.e. pure profit going to companies that probably scooped up the domains for free). In some sense, paying anything beyond a registration fee is gouging, in my opinion. I don't want to be conned... on the other hand, this is the reality of business, and I don't want to come across as amateurish. Does anyone have any advice for this new-comer to domain name purchasing?"
Why not just pay? I'm sure that $8,000 would have gone to feed the hungry. Or to buy giant plasma screens to direct the masses in worship of his most holy name. But really, what's a few thousand dollars between brothers and sisters in Christ?
If a good is significantly rare, or the need for that good is significantly high, then the transaction cannot be described as voluntary. If the transaction is not voluntary, your reasoning falls apart.
Do you believe a seller has a right to withhold a good from a buyer?
If not, then it follows that you believe the seller is partially enslaved to the buyer, since you believe the buyer is entitled, on some level, to the good the seller produced or purchased with his own labor.
If you do believe the buyer has a right to withhold his good, then what is the difference between withholding a good completely, and offering that good for a million dollars?
do you change the name of your business, or run the risk of your competitor being willing to pay the $1500 to grab this domain and then slander your business or direct business to their site in your name.
Slander is illegal, and someone else using your company name to attract business is a violation of trademark law (please correct me if I'm mistaken about this).
In summary, there is no such thing as gouging in a free market. All prices are determined by supply and demand.