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What's it worth to you over say the next 20 years, will it bring in more sales?
If you were in his position you would ask the same
Him £5000
You sorry well out of my range
Him how about £2000
You I can just about go to £500
Him thats no good to me how about £1000
You £750 thats my absolute best price
Sold
Forget what he paid or you would have paid, you need it he wants to make as big a profit as quick as possible
If you feel you really need it to make better sales then negotiate
Unless you have the Trademark you will have to Pay the price they ask if you want the domain .. Nominet will do nothing ..