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Should I increase the price of my gigs?


spiritual_lama
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39 minutes ago, spiritual_lama said:

I am stuck at a decision. Help me out Fiverr OGs.

 

I was just promoted to level 1. Should I increase the price of my gig? Will it be beneficial or reduce my orders?

TL;DR
Consider your workload. If you have too much work, kick your rates up 10-15%. This will get rid of lower paying clients. 
Also consider how much you want/need to earn on average, to keep up with your lifestyle. 

Long answer: 

It depends: do you have more orders than you can handle? 

I find it to be the most useful metric when I need to decide on rates (in addition to "how much do I need to earn per hour to pay my bills?"). 

Every six months or so, I consider my workload. If I'm getting more work than I can (or like) to handle, I'll increase my rates by about 10-15%. 

I'll then transition my regular buyers onto my new rates. Some will drop off and never come back, because they don't want to pay the new price. 

Some will be a bit put off by it, but accept it because of the service level I provide. 

Most will totally understand, and stick with me, happily paying my new rate, because they are happy happy customers. 

The ones dropping off leads to less work (but I'm still earning the same, since my rates are higher). 

The "put off by price increase" people who still decide to stay, are far and few between, so I don't worry about them. 

The rest will keep ordering, but pay me more money for the same service. 

 

There are other things to consider, as well. Your competition, for instance. What's their price level? What do Top Rated Sellers charge in your niche? Try to price yourself just below them (10 - 15%) to encourage buyers to order from you and not them. 

At the end of the day, though, my price increases because I want to work less and earn more. So by gradually letting lower paying clients go (it's ok to fire your clients), while keeping the ones who willingly pay my asking price, I achieve that goal. 

Every year - around Christmas, I take stock of the year: How many hours did I work? How much did I make, on average, per hour? Compare that to how much I want/need to make per hour to uphold my lifestyle or reach my goals. 

Numbers below are just examples:

Let's say I made 60.000 USD in 2021, as an example.

Income per month: 5000

Bills and recurring costs: 2000

Saving goal: 1500 per month

Spending: 1500

Total: 5000

I'd like to work 5 hours per day, 5 days a week. That's (roughly) 100 hours per month of work. 

So I'd need to earn 50 bucks per hour on average. 

If I want to earn more, I'd have to up my average per hour rate. 

Simple as that. 

 

Edited by smashradio
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10 hours ago, smashradio said:

TL;DR
Consider your workload. If you have too much work, kick your rates up 10-15%. This will get rid of lower paying clients. 
Also consider how much you want/need to earn on average, to keep up with your lifestyle. 

Long answer: 

It depends: do you have more orders than you can handle? 

I find it to be the most useful metric when I need to decide on rates (in addition to "how much do I need to earn per hour to pay my bills?"). 

Every six months or so, I consider my workload. If I'm getting more work than I can (or like) to handle, I'll increase my rates by about 10-15%. 

I'll then transition my regular buyers onto my new rates. Some will drop off and never come back, because they don't want to pay the new price. 

Some will be a bit put off by it, but accept it because of the service level I provide. 

Most will totally understand, and stick with me, happily paying my new rate, because they are happy happy customers. 

The ones dropping off leads to less work (but I'm still earning the same, since my rates are higher). 

The "put off by price increase" people who still decide to stay, are far and few between, so I don't worry about them. 

The rest will keep ordering, but pay me more money for the same service. 

 

There are other things to consider, as well. Your competition, for instance. What's their price level? What do Top Rated Sellers charge in your niche? Try to price yourself just below them (10 - 15%) to encourage buyers to order from you and not them. 

At the end of the day, though, my price increases because I want to work less and earn more. So by gradually letting lower paying clients go (it's ok to fire your clients), while keeping the ones who willingly pay my asking price, I achieve that goal. 

Every year - around Christmas, I take stock of the year: How many hours did I work? How much did I make, on average, per hour? Compare that to how much I want/need to make per hour to uphold my lifestyle or reach my goals. 

Numbers below are just examples:

Let's say I made 60.000 USD in 2021, as an example.

Income per month: 5000

Bills and recurring costs: 2000

Saving goal: 1500 per month

Spending: 1500

Total: 5000

I'd like to work 5 hours per day, 5 days a week. That's (roughly) 100 hours per month of work. 

So I'd need to earn 50 bucks per hour on average. 

If I want to earn more, I'd have to up my average per hour rate. 

Simple as that. 

 

Wow. Just wow. Love the idea especially the breakdown.

This really helps.

 

I will have to learn to fire clients like you mentioned. 
 

Thank you so much for taking the time to write this down for me.

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