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Advantage of Average Selling Price


cad_solution

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It depends on what your service is and your level of qualifications.

I’ll use logo design as an example.

If I were looking for a logo designer I would NEVER hire someone who charges $5, $10, $50 for a logo design.

I would expect a good quality logo to cost no less than $100.

A professional logo I would expect to be in the $500 or more range.

A logo where I would own all the rights and can use for branding (on coffee mugs, signage, t-shirts, whatever) should be closer to $1,000 or more.

When it comes to pricing there is a very simple rule, do not under-sell your products/skills.

You may not see a lot of work because of your pricing, but those who pay will be assured of quality work because the price indicates that.

Here’s what I mean: Compare a $5 watch to a $250 watch.

Which will last longer, is more reliable and has the better quality?

If you said the $5 watch, you are wrong.

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  • 1 year later...

Hello, New to the forums and coming up on 20 complete orders.

I've heard people talk about average selling price. How important is this to the behind the scenes algorithm? Aside from getting more money does it help decide how much you be shown on the site?

I've had few orders that I did just $5 because they wanted something small or as a tool to get some one hooked. "Try this and if you like it, get this bigger order."

Am I doing myself a disservice or is a sale still worth more than no sale.

Thank you

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On 8/20/2022 at 2:33 AM, iamattique said:

Okay, but my questions was about the average selling price that we see in the analytics tab or the statistics.

Hi @iamattique, @mariashtelle1 is absolutely right - you are the one that's controlling the prices of your gig. So the average selling price has no connection with your quality of service.

What I like to use the ASP statistics for is to:

1. Check if my ASP is increasing over time - this is the general trend that I want to see. It means I'm working less for more money.

2. Increase my ASP if I feel too overwhelmed with orders. Increasing your ASP will make sure you get less orders (but paid more per order)

3. Give more discounts and coupons (and decrease my ASP) if orders slow down. Lower prices can attract more buyers during your slow times. 

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8 minutes ago, vickieito said:

Hi @iamattique, @mariashtelle1 is absolutely right - you are the one that's controlling the prices of your gig. So the average selling price has no connection with your quality of service.

What I like to use the ASP statistics for is to:

1. Check if my ASP is increasing over time - this is the general trend that I want to see. It means I'm working less for more money.

2. Increase my ASP if I feel too overwhelmed with orders. Increasing your ASP will make sure you get less orders (but paid more per order)

3. Give more discounts and coupons (and decrease my ASP) if orders slow down. Lower prices can attract more buyers during your slow times.

Hello @vickieito

Perfectly explained. For the past couple of years I am doing exact same. I have increased my selling price up to 200% and as a result my stats and orders dropped exponentially. However, under my niche I do not get new clients, probably the rates are much higher than competition, but my older one are very happy to stick with me. 

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Average selling price does not impact your sales. But average sales price affects your gig ranking. Fiverr will promote your gig more when your average selling price is higher. Because if your average selling is high then Fiverr will profit more from your one sale. Overall average selling price doesn't impact your sale.🙂

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1 minute ago, shariful512 said:

Average selling price does not impact your sales. But average sales price affects your gig ranking. Fiverr will promote your gig more when your average selling price is higher. Because if your average selling is high then Fiverr will profit more from your one sale. Overall average selling price doesn't impact your sale.🙂

that's another great point of view... I like it too. Thank you for sharing you insights.

But, does it mean fiverr will show our gig to only high paying buyers??

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5 hours ago, iamattique said:

Okay, but my questions was about the average selling price that we see in the analytics tab or the statistics.

Well, put yourself in the shoes of a buyer. Would you buy something if it was more expensive or cheapter? Do you care about work quality or you want something cheap? These are some of the things that will affect how a buyer judges any gig. I think you should focus on improving, learning new skills rather than trying to think about any possible method to try and generate sales.

Edited by donnovan86
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Does any gig rank down for selling at low prices than the average selling price?

I've learned from social media that selling a gig at low prices (by custom orders, buyer requests) than the average selling price, causes the gig to rank down. Is it true?

For example, my average selling price is 14$. If I sell a gig at 5$, does it leave any impact on my gig ranking?

Custom orders normally have different offers than original gig packages. 

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I haven't seen any negative effects from offering $5 even $10 gigs to some of my best customers. And some of the times when I have had low prices, I've also had the Fiverr Select badge. 

Fiverr does like to see that your average selling price is increasing over time, especially in your posted gig prices. I don't think occasional custom offers for low prices will affect your gig's performance.

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9 hours ago, logolightuup said:

Does any gig rank down for selling at low prices than the average selling price?

You do realise that your average selling price is literally the average price that you put on your gigs or custom orders. And your average selling price can be anything you put it at 🤷‍♀️ You can not sell it lower than average the average price because then your average price will also slowly start going down 

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22 hours ago, logolightuup said:

Does any gig rank down for selling at low prices than the average selling price?

I've learned from social media that selling a gig at low prices (by custom orders, buyer requests) than the average selling price, causes the gig to rank down. Is it true?

For example, my average selling price is 14$. If I sell a gig at 5$, does it leave any impact on my gig ranking?

Custom orders normally have different offers than original gig packages. 

A high average selling price can make you more attractive in the eyes of the algorithm. Fiverr loves to sell those gigs because it means more money for Fiverr. 
So setting up custom offers with very low rates will affect your ASP. Your goal should be to charge more using custom offers compared to your gig page, not less. That's because chatting with a buyer is an excellent opportunity to upsell your services. You can't always manage to do that, of course, but giving away your services for free (and I consider five dollars free in this case) is not the mark of a professional. 

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  • 4 weeks later...

What Fiverr give customers according to our  average selling price

 

Suppose gig price is $90 and a average selling price is $30 ,  what Fiverr reach our gig to buyers that have $30 average purchasing?

 

I am in confused that what is benefit of average selling price?

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On 5/21/2021 at 1:31 AM, cad_solution said:

Hi, I wanted to know here what is your Average Selling Price and what for this I need? What advantage I will get if I have higher rate?

Mine Average Selling Price near $300 but didn’t get any advantage for that.

I don't think it have much more importance. But buyer get an idea about your average fees while considering your profile. 

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