Am I quoting the right prices?

[mrdigitaltom]

Hi all,

Been reading the forum a lot but frst time posting. My question is about providing web design gigs, so if I'm in the wrong sub forum please tell me where to post instead - thank you!

I'm a new seller - joined in May. I get messages from potential buyers asking for services that my gigs don't quite cover, which is great because I didn't thnk I'd get much contact at all at this stage.

My question is:

How much are buyers expecting to pay for services?

I fully appreciate that it all depends on the service so a few examples:

EXAMPLE 1: Buyer wants 10 pages editing. The pages are already built and functioning. The buyer wants you to go through each page and sort out finishing touches i.e fonts made consistent on page, spacing, add a few links, add some entrance animations etc - nothing major, probably an average of 5-10 slight edits per page. Pages are built with Elementor.

EXAMPLE 2: Buyer wants 3 pages creating in WordPress with block editor and Kadence Blocks(for example) The buyer has the design of each page ready to go as a Figma/PSD.

I'm finding it a bit tricky to price in regards to what the buyer is generally expecting to pay for the service because I have a niche web design site and I know exactly what my audience are prepared to pay! But, Fiverr is a different beast altogether!

Huge gratitude to anybody who can shed a bit of light on the subject for me!

Tom

 

[moikchap]

There will be a spectrum of buyers with a spectrum of price tolerances. Fiverr has indirectly given a sliver of guidance in their shareholder letter [Q1 2022]. The two elements I would call out are that the average buyer spends $251 USD over the year between all tasks, and that Fiverr considers someone a "high value buyer" at only $500 of spending in a year.

That said though. I see a lot of people start their prices low to build up their reviews, queue, and seller level, and then bump the prices when they start getting a backlog. So, you can set the price to something you feel comfortable with and then increase it over time. I've had new sellers start doubling prices within a couple weeks after I kickstart their activity. So, it seems like a temporary "loss leader" seems to work for getting prices up to what the seller is actually comfortable with and balanced against their traffic/clickthrough.

[smashradio]

I'll piggyback on what @moikchap said above. 

Setting your rates should be based on how much you want to earn per year divided by the number of billable hours you plan to work in that year. So if you plan on working 1000 hours per year, and you want to earn 50.000 per year, your average hourly rate should be around 50.

Knowing that, you can figure out how many hours you estimate for each project. Don't forget to account for all expenses you have: Fiverr takes 20%. Add that. Taxes? Add it.  Let's say you plan on spending 5 hours on a project. That would be 250 + 20% + taxes (if you plan on being left with 50 per hour). 

It's a rough example, but it can help guide your rates. It's not exact and the number of billable hours will depend on your situation. You also need to take into account your competition and level of experience.