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Is it Ok to talk about fees to clients?


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hi there,
i am fairly new here. i would like to know if it is Ok to explain to potential clients why we markup the prices?

for example if i want to earn $80 and i make an offer at $100.
can i explain to the client that i put the markup because of fiverr’s fees?

thanks

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You can construct your prices in a way that takes fees into an account, for both standard gigs and custom offers. Your buyer doesn’t need to know that you include 20% fee into the price. I don’t think it’s against the ToS per se but it might be considered an attempt at manipulating the buyer in a certain context (“poor me, I have 20% fee to be taken away”) and you absolutely don’t need that.

Also, it’s kind of irrelevant information for the buyer, I suppose. They either agree to pay the price or not.

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You can construct your prices in a way that takes fees into an account, for both standard gigs and custom offers. Your buyer doesn’t need to know that you include 20% fee into the price. I don’t think it’s against the ToS per se but it might be considered an attempt at manipulating the buyer in a certain context (“poor me, I have 20% fee to be taken away”) and you absolutely don’t need that.

Also, it’s kind of irrelevant information for the buyer, I suppose. They either agree to pay the price or not.

Also, it’s kind of irrelevant information for the buyer,

Indeed. Just like we don’t tell them about the bills we need to pay, the food we need to eat, the cost of internet and a computer and what not.

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No, there is no need to explain the make-up of your prices.
Similarly, no need to mention your rent, any drug habit you might need to feed or the over-eating teenagers you are supporting.

None of your expenses are relevant to clients. Your price is the price you charge.

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No, there is no need to explain the make-up of your prices.

Similarly, no need to mention your rent, any drug habit you might need to feed or the over-eating teenagers you are supporting.

None of your expenses are relevant to clients. Your price is the price you charge.

No, there is no need to explain the make-up of your prices.

Similarly, no need to mention your rent, any drug habit you might need to feed or the over-eating teenagers you are supporting.

Indeed. Just like we don’t tell them about the bills we need to pay, the food we need to eat, the cost of internet and a computer and what not.

I disagree. It is not appropriate in the vast majority of cases. However, sometimes buyers need slapping with a reality check for their own good.

I get people all the time asking me to work for less or include the likes of pricey stock footage in videos. In the latter case, I have to point out that I do not have a magical ability to source several stock video clips for $60+ each to use in a video that I can sell to them for $60 in total.

Likewise, there is a peculiar species of buyer who orders direct once in a while, then gets it into their head that any subsequent work will be heavily discounted. Usually, these aren’t the kind of people who will take no for an answer easily. Often, they also message asking for discounts before having reviewed already delivered work. (Thereby making it feel like there is the unsaid threat of a negative review hanging in the air.)

With anyone like that, I simply say that I takeaway less than 70% on any order, and as such, my rates are already discounted.

There is no need to elaborate further than that, but it does usually work to deliver a "no, you are not getting a discount you cheap expletive expletive" message more gently than just saying "on your bike."

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No, there is no need to explain the make-up of your prices.

Similarly, no need to mention your rent, any drug habit you might need to feed or the over-eating teenagers you are supporting.

Indeed. Just like we don’t tell them about the bills we need to pay, the food we need to eat, the cost of internet and a computer and what not.

I disagree. It is not appropriate in the vast majority of cases. However, sometimes buyers need slapping with a reality check for their own good.

I get people all the time asking me to work for less or include the likes of pricey stock footage in videos. In the latter case, I have to point out that I do not have a magical ability to source several stock video clips for $60+ each to use in a video that I can sell to them for $60 in total.

Likewise, there is a peculiar species of buyer who orders direct once in a while, then gets it into their head that any subsequent work will be heavily discounted. Usually, these aren’t the kind of people who will take no for an answer easily. Often, they also message asking for discounts before having reviewed already delivered work. (Thereby making it feel like there is the unsaid threat of a negative review hanging in the air.)

With anyone like that, I simply say that I takeaway less than 70% on any order, and as such, my rates are already discounted.

There is no need to elaborate further than that, but it does usually work to deliver a "no, you are not getting a discount you cheap expletive expletive" message more gently than just saying "on your bike."

With anyone like that, I simply say that I takeaway less than 70% on any order, and as such, my rates are already discounted.

I tell them that my prices are much lower than the standard industry rates. Or that they’re already discounted, and that I can’t lower them any further.

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No, there is no need to explain the make-up of your prices.

Similarly, no need to mention your rent, any drug habit you might need to feed or the over-eating teenagers you are supporting.

Indeed. Just like we don’t tell them about the bills we need to pay, the food we need to eat, the cost of internet and a computer and what not.

I disagree. It is not appropriate in the vast majority of cases. However, sometimes buyers need slapping with a reality check for their own good.

I get people all the time asking me to work for less or include the likes of pricey stock footage in videos. In the latter case, I have to point out that I do not have a magical ability to source several stock video clips for $60+ each to use in a video that I can sell to them for $60 in total.

Likewise, there is a peculiar species of buyer who orders direct once in a while, then gets it into their head that any subsequent work will be heavily discounted. Usually, these aren’t the kind of people who will take no for an answer easily. Often, they also message asking for discounts before having reviewed already delivered work. (Thereby making it feel like there is the unsaid threat of a negative review hanging in the air.)

With anyone like that, I simply say that I takeaway less than 70% on any order, and as such, my rates are already discounted.

There is no need to elaborate further than that, but it does usually work to deliver a "no, you are not getting a discount you cheap expletive expletive" message more gently than just saying "on your bike."

In that case why not explain the value of your work instead of what your profit margin is? No competent, good buyer bases their purchase on your profit margin. Good business people know they pay for value not vendor’s costs.

Anyone who haggles does it because they don’t understand or appreciate your value. You don’t need to share your profit margins to stop the haggling and that approach wouldn’t prevent it. And most people only haggle if they get a feeling you’ll be receptive ie your rates are too low. That attracts an entitled, incompetent buyer.

There’s likely a reason people think they can haggle you like this or why you’re attracting the kind of person who does it.

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If you were selling yourself off Fiverr, would you moan on to a prospective client about the cost of advertising, or how much that replacement laptop power supply cost when the old one blew up, or the cost of a new licence for MS Word when compared to that old copy of Office 2010 you’ve been using for a few years now? No, of course not.

Why not? Because your client doesn’t care about your costs, and indeed it would be very odd and off putting for a client to hear you approach the subject with them. It’s not appropriate. Fiverr’s fees to host your profile and provide you with a hassle-free e-commerce ability is just another business cost.

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If you were selling yourself off Fiverr, would you moan on to a prospective client about the cost of advertising, or how much that replacement laptop power supply cost when the old one blew up, or the cost of a new licence for MS Word when compared to that old copy of Office 2010 you’ve been using for a few years now? No, of course not.

Why not? Because your client doesn’t care about your costs, and indeed it would be very odd and off putting for a client to hear you approach the subject with them. It’s not appropriate. Fiverr’s fees to host your profile and provide you with a hassle-free e-commerce ability is just another business cost.

Thank you.

No one becomes receptive because they hear what your costs are unless they are sleazy and incompetent.

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  • 1 year later...

To balance this topic, I’d say that since I started working on another platform with a 1€ flat fee for any order value and similar service as Fiverr, it makes more sense to me to be transparent about the asked price. One would not have to consider mentioning the fee if it wasn’t so high to start with. So when I quote a tailor-made price, I just include a simple parenthesis such as:

$1000 ($800 + 20% fiverr fee)

In my own perception, it’s being transparent about the price markup and it’s discreet, no explanation, no yada yada. For high order values, especially when it’s not a ready-made gig, but a tailor-made service, the 20% accounts for a lot. So if a client pays $1000, he knows he pays $200 to be able to use Fiverr services, and $800 is actually what the job is worth given my skills. This is only fair to know what you actually pay for and it sets expectations as they should be.

Then there are income taxes, what about those? But this is obvious, and it’s also obvious that these taxes differ from one country to another. Fiverr fee is not obvious, it’s not explained, it’s nearly hidden since the customer is not aware of it. One other platform I work for automatically detail the price on checkout (seller income, platform fee, payment fee, VAT).

So to those saying it’s not professionnal to be transparent on the fee, I say it’s not professionnal to not be. Just try both ways, play by the rules, and as time goes by, you’ll sense what approach works best for your business. Then just stick to it 🙂

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To balance this topic, I’d say that since I started working on another platform with a 1€ flat fee for any order value and similar service as Fiverr, it makes more sense to me to be transparent about the asked price. One would not have to consider mentioning the fee if it wasn’t so high to start with. So when I quote a tailor-made price, I just include a simple parenthesis such as:

$1000 ($800 + 20% fiverr fee)

In my own perception, it’s being transparent about the price markup and it’s discreet, no explanation, no yada yada. For high order values, especially when it’s not a ready-made gig, but a tailor-made service, the 20% accounts for a lot. So if a client pays $1000, he knows he pays $200 to be able to use Fiverr services, and $800 is actually what the job is worth given my skills. This is only fair to know what you actually pay for and it sets expectations as they should be.

Then there are income taxes, what about those? But this is obvious, and it’s also obvious that these taxes differ from one country to another. Fiverr fee is not obvious, it’s not explained, it’s nearly hidden since the customer is not aware of it. One other platform I work for automatically detail the price on checkout (seller income, platform fee, payment fee, VAT).

So to those saying it’s not professionnal to be transparent on the fee, I say it’s not professionnal to not be. Just try both ways, play by the rules, and as time goes by, you’ll sense what approach works best for your business. Then just stick to it 🙂

$1000 ($800 + 20% fiverr fee)

There is absolutely no doubt in my mind that this kind of pricing method will encourage buyers to ask to buy from you elsewhere as they don’t want to pay the fee.

PS: $800 + 20% = $960

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$1000 ($800 + 20% fiverr fee)

There is absolutely no doubt in my mind that this kind of pricing method will encourage buyers to ask to buy from you elsewhere as they don’t want to pay the fee.

PS: $800 + 20% = $960

and also I think fiverr is taking 40% or something of an order between the buyer and the seller…

look at this:

Buyer pays $800 + 20% = $960

seller’s profit: $800 - 20% = $640

fiverr earnings: 20% buyer: $160 + 20% seller: $160 = $320

oh and %20 of tips omg

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Personally, I don’t think that you need to explain that to your buyers. Just say your price is $100. If they agree on that price, they will no matter you explain that there’s a 20% fee or not.

but, yeah you can do so if you really wish to as there is no term against it.

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I personally think it would be unfair, overcharging the buyer just because we are paying 20% of our revenue to fiverr.
it is unfair in many point of views
1: Buyer also pays service charges to fiverr other than they pay the order value
2: We have already agreed upon with fiverr to pay 20% of our earning
3: There is no harm in paying fiverr 20% as they provide us a great global marketplace even at our home without stepping out and hunt for clients

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I don’t need to justify my price to a buyer. This is what I charge, take it or leave it. When it go to buy a bouquet of flowers, the person at the store front doesn’t tell me the flowers are $30 because $5 goes to shipping cost and another $5 goes towards their water bill.

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