Pricing Guidance Update - Summer 2022

[newsmike]

Normally I suggest an annual price bump to keep up with traditional inflation rates with a 5% increase in January, however we are in unusual times.  I am now advising any sellers with a regular clientele to consider an additional 5% bump this summer to keep pace with this most unusual situation.

 

Edited June 15, 2022 by newsmike

[animie_video]

That's so much and should be followed and respected. And for some countries like Pakistan, this percentage should be even more because the situation that we're going through is getting worse with each passing day and only God knows what's going to happen in coming days. 

[rabihumakhan]

Inflation in our country is above 15% according to the govt. However independent sources say that it's around 38% and will likely to increase. 

Unfortunately, we are slowly heading towards bankruptcy. 

Having said that, a 5% hike wouldn't suffice. 

[newsmike]

3 minutes ago, rabihumakhan said:

Having said that, a 5% hike wouldn't suffice. 

Of course, you may need to raise even more.  Absolutely. 

[katakatica]

8 hours ago, newsmike said:

Normally I suggest an annual price bump to keep up with traditional inflation rates with a 5% increase in January, however we are in unusual times.  I am now advising any sellers with a regular clientele to consider an additional 5% bump this summer to keep pace with this most unusual situation.

My plan is to raise my prices / 1000 words by $20 by the end of this year (the goal is to double last year's prices, but to be gradual.) I'm in a bit of a slow period right now, though have enough returning clients, so might take the plunge and start (slowly, though, as I've already raised them by quite a bit since January.) 

It's funny because I was very 'isolated' from October until about December/early January of this year so I never really realised how expensive Stockholm was until I started commuting here, which for some reason means that I didn't really notice pricing changes much (yet!) but I KNOW what's going on - and definitely don't want to end up in a tricky spot. 

[miiila]

Mike is most certainly right there.

If you completely rely on Fiverr and are really afraid of losing your regular customers if you raise your prices, another option would be to raise prices and insist on the new prices when new people message, but give "grandfathered" prices via custom offers or Fiverr's what are they called, Coupons, I think, to your, or some, regular customers (for now; you can still decide whether you can or want to keep it that way further down the line, when you see if you get orders from new people for your new prices). That's not an unusual business practice at all, and as it's your business, you're free to conduct it any way you like. (How I wish I'd been on or even known about a certain platform early enough to take advantage of a "life-time offer" they had when they started out, and could have profited from that grandfathered pricing all along, but that's life.) 

I'm also sure that for many among us, it would already help to insist on their current Gig prices, versus making cheaper custom offers, so many might be able to counteract inflation at least a little by that, and it should be easier to point at existing prices than telling people about a price raise even for people who are uncomfortable with price discussions or who have anxiety of any kind. Just type up a few nice quick responses in your downtime, in a relaxed situation, that you can use for typical "person asks for a lower price" scenarios that you encounter.

Edited June 15, 2022 by miiila

[kendal1747]

10 hours ago, newsmike said:

however we are in unusual times.

Yes, these are unusual times, though I feel that this is a direct yoyo effect of the plandemic.

[visualstudios]

The problem with raising prices in line with inflation is that it ignores purchasing power. The market is contracting. All the essentials are more expensive, which means people have less discretionary spending. Companies will invest less. 

[newsmike]

22 minutes ago, visualstudios said:

Companies will invest less. 

That may be true for some companies, but overall, the world will not stop marketing. We will likely have to work harder to attract the buyers as things get hyper competitive. Maybe time for sellers to reinvent their gigs from the ground up, sharpen the pitch? Just a thought.

[newsmike]

3 hours ago, miiila said:

but give "grandfathered" prices via custom offers or Fiverr's what are they called,

Absolutely. Very smart to reward your regulars, and make it a benefit of loyalty.  You can prep them and make them feel appreciated while quoting prices... "Just FYI, I'm adjusting my rates soon, but you've been with me so long that I'll continue at the old rate till year end." Or whatever makes them feel appreciated for staying with you. Great way to handle it. 

[words_to_wow]

I considered raising my prices earlier in the month, mostly because of inflation. However, I wondered if it would scare customers away. And I definitely don't want that. Then, today, I found out I was chosen for Top-rated seller (so shocked but excited), and I wondered if I should raise my prices because of that. I'm still not sure what to do, but I'm tired of spending $100 to fill my tank. 

[newsmike]

3 hours ago, words_to_wow said:

I wondered if I should raise my prices

Congratulations!, I'll be sending you the secret codes later today. And as far as raising prices.... 

 

 

Edited June 17, 2022 by newsmike

[words_to_wow]

Thank you so much! And okay, got it 😃!!

[shakibhusaindms]

Thanks.