Pricing Negotiations
The pricing or evaluation of toll free numbers is more difficult than it is to evaluate most other assets. That’s because not only is there a limited number of major transactions, but those transactions are always done in confidence and aren’t reported to anyone. So there is no book value of definitive price list for toll free numbers. That’s why I always explain that how you approach the owner and their perception of you is very important, and why the logical justification and rational behind whatever price you ask is so critical too.
Several factors go into the price of toll free numbers. The biggest I already mentioned which is the value both the potential increase in response from using it in your advertising and the existing calls which may be lost (if it’s the exact name of the buyer or if its the ‘800’ version of a number the buyer is already using). Another consideration, depending on the situation is the cost of the seller to give up the number. If it’s in use, even with a small local business, it’s going to cost them something to give up the number. They may have to reprint cards, stationary, brochures and catalogs, repaint trucks and redo advertising which may be lost.
A third factor in what other equivalent numbers have sold for. Unfortunately this is difficult to say the least because these transactions aren’t reported and it’s also hard to say what is really equivalent. Even similar numbers in different situations sell for very different prices. The bottom line is that there is no market for numbers so there’s no good market value or equivalent. Just like the expression says beauty is in the each of the holder and there are definitely a lot of “squatters” that think their number is worth a house when they couldn’t get a clunker of a used car for it.
TIP: Offer to let them keep the number in their area for a period of time, to reduce the expense of giving up the number. That can be a good way to get over an initial objection.
See also a study of toll free numbers listed on ebay
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Steve says:
January 11, 2008 at 7:25 pm
Bill:
I have a toll free number I am considering selling. Is that something you could help broker?
You were able to help me out a few years ago with some look-ups. Wasn’t sure if this was a service you offered.
Thanks for your reply.
Steve
Bill Quimby (248 comments.) says:
January 11, 2008 at 9:48 pm
Hi Steve,
There are regulations prohibiting hoarding and brokering. Some people twist that in order to tell you that you’re not allowed to get paid to release your own number, which isn’t really what the regulations say. My interpretation of the regulations are essentially that you can’t be the equivalent of a car dealer. That doesn’t mean you can’t sell your own car, because selling your own car doesn’t make you a car dealer. But it does mean that I’m really not allowed to sell your number. And that’s also one reason why you probably won’t find anyone reputable that will do that for you either. See http://www.tollfreenumbers.com/blogs/numbers/is-it-legal-to-buy-and-sell-numbers.html for more about buying and selling a number.
Another reason is that it’s probably harder than you might think to market specific numbers. It would be like trying to sell a specific album. It’s not impossible but that’s a lot harder than having a store full of CDs for every group and kind of music available. It’s much easier to help people find what they need, rather than to convince them your number is the best and worth the retail price you want for it when there is no book value for toll free numbers. People just aren’t used to buying numbers so it’s not easy to find someone that needs one badly enough and happens to want that particular album. That’s why I just help people find numbers and give them lots and lots of choices for just a nominal amount. To me, it’s easier to help people find over 500 numbers in a month that way than it would be to find and close just a couple buyers for specific high end numbers.
On the other hand you could certainly throw an auction up on ebay. There aren’t hundreds of people doing that every day yet, but that’s one simple way that some people do market their own number directly. See: http://www.tollfreenumbers.com/blogs/consulting/selling-800-numbers-on-ebay.html I would also try putting a small add for it in the back of a trade magazine or journal directing people to the website, because you still need to get enough people’s attention in that industry.
I hope that helps. Let me know if you have any questions or need any help with anything else.
.Bill Quimby.