So, if you haven’t yet heard, Fiverr are currently rolling out a new ‘package’ feature (available in a few select categories right now, including book covers). You can read more about this here: http://blog.fiverr.com/introducing-fiverr-packages-now-you-can-sell-for-more-than-5/ and here: https://www.fiverr.com/liveandearn
As Uncle Ben said:
"With great power comes great responsibility"
To put it simply, for many people this is the first time they can set a price for their services which they decide, as opposed to starting from a mandatory $5.
Whilst this is almost guaranteed to increase revenues for most sellers, there is also the potential for it to actually decrease for others.
There are 3 ways to proceed when packages are opened up within your category:
Keep your pricing the same as it is now with 1 package (your basic $5) gig and available extras.
Convert your extras into packages and set 3 different options to reflect that
Convert your extras into packages and set 3 different options with largely increased prices.
To go through each scenario, I’m going to give you a demonstration service. “I will create a logo”. Before the packages, the service was $5 with 3 extras - source files ($10), business cards ($20) and letterheads ($30).
To follow the options above, there are 3 ways to proceed:
OPTION 1:I still offer a logo for $5 (which converts into a package) and all extras remain extras.
- Good way to proceed if cautious about changing
- Allows you to observe overall change in platform before making switch
- Keeps everything the same for previous buyers
Entrepreneurs are known for taking risks and being on the forefront. Sitting back could see you fall behind when you decide to change
If you adapt early, you have a chance of leading the curve, as opposed to following it.
The longer you leave the lower prices of previous format, the more difficult it could be to convert your past buyers.
OPTION 2:I create 3 packages:
Basic logo + source files - was $15, now $20
Logo + source files + business cards - was $35 now $40
Logo + source files, + business cards + letterheads - was $65 now $80
You keep your previous service but make it more presentable and call-to-action for upgrades
You slightly increase prices but don’t risk losing your previous client base by increasing them beyond your means
Your prices aren’t too low (and potentially perceived as a lower quality), yet they aren’t too high as to deter sales. As Goldilocks would say, they’re just right!
- Could you still be charging more? This something which can only be learned over time and shouldn’t be rushed into.
OPTION 3:I create 3 packages and see the new pricing as a way to really increase my earnings:
Basic logo + source files - was $15, now $50
Logo + source files + business cards - was $35 now $80
Logo + source files, + business cards + letterheads - was $65 now $120
- If buyers do purchase, you earn more for less work
Much higher prices could deter both old and new buyers. I understand when you have the ability to set your own prices, you think of the potential. “I sold 10 gigs last week for $10. If I make them $50, I would make $500!!”. The problem is, there’s a tipping point. Doubling your prices and receiving half the clients technically means you’ll earn the same money for less work. However, you still need to secure those clients.
Price too high and you price yourself out of the market (which is a real risk in a market which will now be fluctuating with prices).
You also risk losing your previous clients. Price increases (as a buyer) are to be expected from time to time but they should be moderate or in accordance with general rates. Price yourself too high and a buyer may go to a competitor. Once the mistake has been realised, it may be too late. That previous buyer may be happy with their new service provider and decide not to revert back.
Since packages have launched (which is only a few hours at this point), I have noticed quite a lot of sellers going with option 3. This is not a tale of caution or a post in-which to tell you how to run your prices, rather observations and comments from both a freelancer, Fiverr and self employed veteran.
TL;DR Packages are here - what a great way for us all to improve our business.Take a moment to reflect on your pricing and decide how best to proceed. Try to avoid jumping out the gate early with large price increases.