Gig Packages - What price should you set?

[twistedweb123]

So, if you haven’t yet heard, Fiverr are currently rolling out a new ‘package’ feature (available in a few select categories right now, including book covers). You can read more about this here: http://blog.fiverr.com/introducing-fiverr-packages-now-you-can-sell-for-more-than-5/ and here: https://www.fiverr.com/liveandearn

As Uncle Ben said:

"With great power comes great responsibility"

To put it simply, for many people this is the first time they can set a price for their services which they decide, as opposed to starting from a mandatory $5.

Whilst this is almost guaranteed to increase revenues for most sellers, there is also the potential for it to actually decrease for others.

http://puu.sh/ljtI2/dc09857b56.png

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There are 3 ways to proceed when packages are opened up within your category:

1. Keep your pricing the same as it is now with 1 package (your basic $5) gig and available extras.

2. Convert your extras into packages and set 3 different options to reflect that

3. Convert your extras into packages and set 3 different options with largely increased prices.

To go through each scenario, I’m going to give you a demonstration service. “I will create a logo”. Before the packages, the service was $5 with 3 extras - source files ($10), business cards ($20) and letterheads ($30).

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To follow the options above, there are 3 ways to proceed:

OPTION 1:

I still offer a logo for $5 (which converts into a package) and all extras remain extras.

PROS

• Good way to proceed if cautious about changing
• Allows you to observe overall change in platform before making switch
• Keeps everything the same for previous buyers

CONS

• Entrepreneurs are known for taking risks and being on the forefront. Sitting back could see you fall behind when you decide to change

• If you adapt early, you have a chance of leading the curve, as opposed to following it.

• The longer you leave the lower prices of previous format, the more difficult it could be to convert your past buyers.

OPTION 2:

I create 3 packages:

Basic logo + source files - was $15, now $20
Logo + source files + business cards - was $35 now $40
Logo + source files, + business cards + letterheads - was $65 now $80

PROS

• You keep your previous service but make it more presentable and call-to-action for upgrades

• You slightly increase prices but don’t risk losing your previous client base by increasing them beyond your means

• Your prices aren’t too low (and potentially perceived as a lower quality), yet they aren’t too high as to deter sales. As Goldilocks would say, they’re just right!

CONS

• Could you still be charging more? This something which can only be learned over time and shouldn’t be rushed into.

OPTION 3:

I create 3 packages and see the new pricing as a way to really increase my earnings:

Basic logo + source files - was $15, now $50
Logo + source files + business cards - was $35 now $80
Logo + source files, + business cards + letterheads - was $65 now $120

PROS

• If buyers do purchase, you earn more for less work

CONS

• Much higher prices could deter both old and new buyers. I understand when you have the ability to set your own prices, you think of the potential. “I sold 10 gigs last week for $10. If I make them $50, I would make $500!!”. The problem is, there’s a tipping point. Doubling your prices and receiving half the clients technically means you’ll earn the same money for less work. However, you still need to secure those clients.

• Price too high and you price yourself out of the market (which is a real risk in a market which will now be fluctuating with prices).

• You also risk losing your previous clients. Price increases (as a buyer) are to be expected from time to time but they should be moderate or in accordance with general rates. Price yourself too high and a buyer may go to a competitor. Once the mistake has been realised, it may be too late. That previous buyer may be happy with their new service provider and decide not to revert back.

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Since packages have launched (which is only a few hours at this point), I have noticed quite a lot of sellers going with option 3. This is not a tale of caution or a post in-which to tell you how to run your prices, rather observations and comments from both a freelancer, Fiverr and self employed veteran.

TL;DR Packages are here - what a great way for us all to improve our business.Take a moment to reflect on your pricing and decide how best to proceed. Try to avoid jumping out the gate early with large price increases.

[webdatasolution]

Just give clients your markup price and negotiate it with them properly.
Negotiation skills are very important in this case.
Desperate clients with urgent requests would not be bothered by the price tag at all.
As long as you take the job seriously and deliver the best results, they would be happy to give you a positive review.
Quality over quantity.

[diplomadon]

In which categories is this being tried out other than “book covers”?

[wowyou]

This could be great! I’m actually looking forward to it in my category. There are services I wish I could offer on Fiverr but I wasn’t willing to start them at $5. This will widen options for many I’m sure.

But I see some customer expectation issues that could arise. People expect $5 from Fiverr and may be deterred by the new pricing. We’ll see but I hope it’s successful.

[sanmeet]

May be this option only for Book Covers. I didn’t see this option on my other gigs. can anyone tell me that how many and which other categories we have this option ??

[twistedweb123]

Hi sanmeet,

I believe packages are currently starting in book covers before rolling out into other categories over time.

I recommend being notified by subscribing to the link at https://fiverr.com/liveandearn

In the meantime, whilst you wait for packages to be active in your category. Take the time to plan how you’re going to use them. Map out your new packages, create new gig videos to reflect them, create new gig images, rewrite your gig descriptions. That way, when they are live in your category, you can instantly change all gigs with your new updated information 🙂

[twistedweb123]

I think packages offer two great opportunities:

1. The ability to bring higher value services onto the platform which don’t really have a $5 starting point. Customdrumloops (Ryan) is a great example of this. He was a part of the “more than $5” beta and used that to offer the same service (whiteboard animation) but at a higher quantity (i.e. rather than $5 for 3 seconds, $50 for 30 seconds). You can see his gig here (not yet with packages): https://fiverr.com/customdrumloops/create-a-professional-explainer-video-for-your-business

2. The ability to take previously provided services but group them together to be more call-to-action and provoke more sales. i.e. If people are ordering your base gig and regular extras, group them together and make that your base package.

There is a temptation to just take your current services and up all prices (as we now can) but that’s what I would recommend against.

[twistedweb123]

I believe packages (at this moment in time) are only available in the book covers category. The information provided suggests they will then roll out to “select Graphics & Design, Writing & Translation and Music & Audio subcategories” shortly.

To be notified about packages being live in your category, signup to the notification at the link here: https://fiverr.com/liveandearn

[wowyou]

“There is a temptation to just take your current services and up all prices (as we now can) but that’s what I would recommend against.”

I agree with that statement completely. We all have to approach this strategically.

Thanks for all your suggestions btw.

[diplomadon]

ok will do that, thanks

[zoranfiver]

This is great news!

I’m thinking about incorporating Gig Packages into my Book Cover Gig, but I still haven’t figured out the best options for my buyers. Many of them love the standard $5 Gigs, especially the regular customers, so I’m still thinking about the ways to make everyone happy.

Anyway, such a great addition from Fiverr. Great to see!

[emasonwrites]

I’m optimistic, I’m just not sure how this going to work in the writing and translation category. Any suggestions for sellers like me that currently have a “x number of words for $5” offer and who use extras to up that word count?

[magy1808]

I just set up my prices way I do in custom offer, and custom offers are 98% of my sales.

[jellyfishonline]

That’s a great news.

[mschouhan98]

Good news and to increase revenues. But I think there should be a package for poster, as well as there are more 20 image to be cut out background, and one have 1-5 image. images furnishing is time consumable work. SO ITHNK IT SHOULD BE.

[arsalanjilani]

I am excited 🙂

[rhiannondaverc]

Really looking forward to this. I will keep my current offers at the same prices but this gives the option for me to add services that would have been too cheap for value before. Now I can offer all of the things I’m great at.

[adsensewizard]

Whoa. This seems such a cool feature! Love the flexibility.

[handwritten_sol]

I usually don’t react good in changes but this one is really awesome.

It seems like very interesting opportunity. Especially for me and my type of business. I am looking forward to try this out. I wasn’t hoping to see such thing here even though this is top hit for me.

Thank you fiverr.

[sanmeet]

Hi Thanks for your response. 🙂
this is very good information. i hv done with subscribing. Thanks

I just want to know one thing more. I do not find “Create a new discussion” in my forum account. how i can make the new post for forum?

[fastcopywriter]

This is completely unnecessary. What’s wrong with gig extras? Some sellers even turn gig extras into package. Honestly, Fiverr keeps making too many unnecessary changes.

[auraiyaits]

I am very excited with FIverr update.

[twistedweb123]

Personally, I changed my gig extras into packages and am relishing this change. Since turning my extras into packages, I have seen a huge boost in sales. Actually having the ability to demonstrate them as packages (which will seemingly be more convenient and call-to-action) will only be positive for me.

The only down side I see is potential pricing pitfalls (as highlighted in the OP).

[fivergraphics5]

“Since turning my extras into packages, I have seen a huge boost in sales”

Great news @twistedweb123, I hope this works for all of us, thanks again for the podcasts, you’re good!

[pinkymou941]

Great news!