subject: How And When To Use The Bin: A Website Flipping Auction Tip [print this page] If you've experienced selling websites in an auction on Flippa, 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're probably not familiar with what the BIN is, so here is an explanation.
Basically, Flippa is currently the preferred site for individuals looking to buy or sell websites. It's the largest as well. When the seller auctions off his site, he or she can add the BIN option at any point. If a buyer agrees with the BIN price, he or she can buy the site right away which automatically ends the auction. It may sound simple, but what isn't that easy is using the BIN to tactically to maximize the potential of the site price.
For example, a seller put up a BIN price of $6,500, and a buyer immediately ends the bidding by purchasing the site using the BIN. Everybody happy, right? However, the buyer told the seller after the deal was finalized that he was willing to go up to $10,000 for the site! In essence, the seller lost out on around $3,500. So in this case, the seller should have exercised patience, instead of offering the BIN price too early in the auction.
Lesson learned; but when is the perfect time really to exercise the BIN? Check out the tips below to improve the profitability of your site.
Experienced website flippers recommend that you use the BIN option when the auction is drawing to an end. For example, if there is a tense bidding battle happening between two or more buyers a couple of hours away from the auction ending then it's time to add the BIN option.
A reminder to both pro website flippers or newcomers:: if a bid comes in within four hours before the auction ends, Flippa extends the bidding for another four hours. But some potential buyers could just as easily to leave the bidding having to wait for so long. At the same time, you as the seller are probably raring to have the process finalized as well.
So the smartest move you can do is to fix the BIN option a bit higher than the most recent buyer bids. Let's say the last bid is in the region of $5,000, then place a $5,500 BIN. A buyer who really wants the website will take that price. Although the buyer may have to shell out $500 more than he intended, the main thing for him is he got the website and saved time by not having to continue with the bidding battle. And you as the seller have save time as well, and possibly got a bigger profit than you anticipated.
Another situation where you would want to use the BIN option is when the auction closes within the next 6 to 2 hours. When this happens, it's better to not wait until Flippa extends the bidding. To be able to ensure 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 instance, if you have 8 hours left on an auction, and the last bid is at $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 move to set a BIN of $4,000.
By following these tips and exercising good business sense, the BIN option is a smart choice to make more profit when flipping websites.
