I like to use F.U.” pricing to test if a client understands your value and is worth your spending time on.
Does that mean what I think it means? Explain, please?
If I get @jandrewnelson right, it does mean what you think and it is the strategy of going in high to see how your possible buyer reacts. It helps separate the serious buyer from the time-wasters.
It is kinda the same game as the buyer starting loooooow to see how shake-able you are. This is the most common strategy you see in places like Fiverr; along with Pants Dropping: pricing stupid low in hope you can jag people who are too dumb to realize that in cutting prices, you cut product quality.
As an example if the general offers are $5, you start at $20 or even $200 as a way of saying I am better, are you committed enough to rise to me? or are you eager enough to have MY thing that you will at least make an offer that is closer to $20 than $5?
It is potentially a very sane reaction in a market driven by commoditization (even of things that are not commodities like music) and therefore race to the bottom thinking. I will admit that I have been considering this sort of strategy as pricing at silly prices, pricing at sensible prices and in-between doesn’t seem to be landing anything these days so maybe making it clear that I am unique will help make the right kind of people take more than 2 secs to blindly dismiss me.
I would love to hear your reasoning and results @jandrewnelson
I think you’ve got the idea!
There’s plenty of Fiverrs splashing around in the waters near the shore and chasing minnows. The deeper waters, where the large trophy fish reside, aren’t as crowded.
In 20-some years of freelancing, it has also been my experience that the buyer who wants the sun, the moon, and the stars for $5 is more trouble in the end than the individual who just wants a handful of soil, but is willing to pay $100 for it.
Also, there are some projects I just don’t want part of.
There was an old man once who had a 1955 Desoto stored under a tarp in his barn. The car was special to him. It was the car he dated his late wife in. It was the car they drove on their honeymoon to Florida and it was the car in which he rushed his wife to the hospital when she was having their first baby.
One day, a stranger wandered by, saw the car, and offered the old man $100 for it even through the car had a Blue Book value of $50. The old man said, “I want $10,000 for it.”
“$10,000? Are you crazy? The car isn’t worth but $50!”
The old man smiled and said, “Nope. I ain’t crazy. I just don’t want to sell the car. However, my mind could be changed for $10,000.”
So yeah. There are a lot of benefits which accrue to the seller when the price is high.
U r definitely right about the pricing u r charges. Some client dont ge the hard work we do for a design. and also there are many people who r charging not only $5 also for Some cents in total like in a bulk design. Thats just sad. We have to stay in the competition too. Sometimes i dont know what to do about this. What do u do in this kind of situation ?
I’m not sure what you’re saying/asking to be honest.
It kind of sounds like, “How do you compete with cheaper sellers?”
If I’m correct, here’s my answer. If I’m not correct, then please clarify your question.
If you’re competing on pricing, you’re shooting yourself in the foot. Regardless of what you charge, there will always be Fiverrs who charge less – and some who charge more.
Instead of trying to compete on pricing, compete on value. What is your “value added proposition” that makes you stand out? What is there in your personal description (NOT the gig description) which works to convince the buyer to buy from YOU?