Fiverr Forum

Driving Volumes to counter fixed Price Gigs!


#1

Hi fellow Buyers & Sellers, I am new to Fiverr and to the overall Online Marketplace thing.
Sad to say that my first sale experience with Fiverr has not been pleasant. Now, I understand that Fiverr has a fixed minimum price for a gig at $5 -Which I understand is an excellent approach to counter Price competition in the market.
But, and this I ask of all the Successful and seasoned Sellers/Buyers here, how to compete with someone who is driving volumes at the same bench-marked price of $5 and driving the overall market average down to below minimum wage levels ?

So, for example an average gig on PDF file conversion is $5 for 20 pages in 24 hours, I get a Buyer - and its my First Buyer - who has 700+ pages of PDF to be converted to Excel. I take a look at the PDF and give him a Quote as per simple maths - $5 for 20 pages , so it will be $175 for the complete 700+ page PDF converted to Excel Manually, but I will give a discount and charge just $150 for the entire thing with a Quicker turnaround of 10 hours.
He was aghast at my offer and I had no other choice but to Decline the Gig.

Surprisingly after couple of hours he mails me that the gig is now closed and assigned to another seller, who intends to do the whole work at the SAME $5 !! Are you Kidding Me ??

I dont think I would be able to offer my services here at such abysmally low Rates !! Its much better and More Ethical in an Offline Marketplace than this Online Marketplace.

So , I ask of all the Heros of Fiverr - Can you kindly help this Noob with how to tackle this problem ?


#2

One thing to keep in mind is that the buyer may have been making up all or part of the second message due to anger over the price quote. Fiverr no longer requires a fixed price of $5 on all gigs. Some are set at this, but gigs using packages can be sold at higher prices. Some buyers are fine with that and some are not, so some are likely to respond unkindly to higher prices. Just ignore them if they are rude to you and if they are very abusive/threatening you should report them to Customer Support.

Many people get worried about competition with low priced gigs, but really the market hasn’t shown that to be a big issue. Many new sellers offer very cheap gigs, sometimes at high quality. It helps them build reviews and reputation and that’s normal. Few sellers can afford to do that long term except while getting a new gig off the ground. The ones that can are not enough to create huge competition. Most of the sellers offering high volume work for $5 on a long-term basis aren’t providing high quality. You also may need to start out with some amazing bargain offers, but if you have great gigs you can command higher prices once you are established.

One last thing - you were probably very lucky you didn’t sell that gig you described in your post. When you have a buyer that you don’t know well and they ask for something big, you need to think it through. Ask them to work with you in milestones instead of one big quote. Be honest with them and let them know that you want to be sure they are happy before they spend a large amount.

Give them a quote for a small amount of work that you can do for $5-20. If they turn out to be nightmare buyers, if you can’t manage the work like you thought, or something else goes wrong - you are only out a few dollars at worst. If things go well, you an proceed to another stage of work until the entire job is done. You don’t want to be new and end up with a bad review or a hundred dollars or more in the negative because a bad buyer files a PayPal chargeback.


#3

Not all customers are the same. I get my share of customers who want to pay dirt cheap prices for hours of quality work that I turn down. I simply say NO thanks. I also get my share of customers who don’t mind paying for quality work. Just tonight I quoted a customer $75 for a gig who told me he tried some other gigs at cheaper rates that did not work out (mostly because of communication issues). His reply was “my communication was professional where others he dealt with was not. Based on my reviews and my portfolio of work, he thought $75 was fair”

What I’m trying to say is you lose some and you win some. It was unfortunate that one of your first customers did not want to pay for quality. If you hang in there and put out quality work, customers get tried of getting lousy work done at cheap prices and they soon come around.

Good Luck


#4

I never think about what other sellers are doing. That’s where you can spend a lot of time and it’s a huge waste of your mental resources. People absolutely will pay whatever you ask if you are giving them what they want and need and can’t get anywhere else.

Stop worrying about anything another seller is doing. Stop it. Just be great at what YOU are doing and the rest will follow.


#5

About 50% of the time, when a buyer has come to me, seen my prices and then said, “Well (this person) is doing it cheaper,” and then they buy from that person, they come back after that order is finished, whining that it “wasn’t what they expected” or were given “sub-par work.” Very few people can afford to offer a huge amount of high-quality work for a pittance. Most buyers know that and after having a bad experience when buying from someone offering the lowest price possible will either become frustrated and blame the platform, or they will realize that what they were asking was ridiculous and will magically increase their budget.

shrug There’s nothing you can do to prevent people from offering more work than you at the same price. If you offer a better value, it doesn’t really matter if people are offering more work than you. Buyer who want quality will look for sellers who offer that, not sheer quantity.