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Price slashing on services. When is a service priced too low?

  • cdrocks Level X3
    • 19

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    Price slashing on services. When is a service priced too low?

    Anybody have any thoughts on this? Resellers are making hundreds of dollars at times from services bought for only a dollar or a couple of dollars here. Would a minimum of 2 dollars or more create more money for everyone here? Kind of like the Fiver website does?

    #Socialmedia #Seo #Services Social Media
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    idealmike

    idealmike

    Hey that's what makes SEOClerks so unique in that you can list services from as low as $1. There are many many things that people can do for $1 whether it's providing a service or a certain amount of something. And it does make up a large portion of sales too. Bringing in a certain minimum price would mean that those sellers wouldn't be able to provide those services to people or would have to provide more for a minimum amount of say $5 or whatever it would be and people don't always want that amount and they like that you can buy things for $1. I buy a lot of $1 services myself for things here and there and it would probably kill me if I had to buy those same services for a minimum of $5 and would probably mean that I didn't buy them because I simply didn't need the amount that $5's worth would give me. I see your reason for saying it, and it's an area that SEOClerks is working on to improve right now so eventually this should help on that front. But we should continue to provide $1 services because they provide a lot value to the buyers and the sellers too even though they do undercut some other peoples services and drive the prices down. It's like a catch 22 situation and you'd be cutting off your nose to spite your face so it's got to be dealt with with tact and if that means removing a lot of the low quality services that don't have many sales and any that infringe upon anything then so be it! They'll not be doing it for the sake of being mean. It's all about the longevity. Price slashing on services. When is a service priced too low?
    10 years ago

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    MasterA

    MasterA

    There is no such thing as a price that is too low. The key is to find a price that gives you the highest profit in the shortest period of time. If $1 is the optimal price, then go with that. Resellers may be profiting a lot from those $1 services but something you should bare in mind is that they work hard or have connections to find customers. I don't think there should be a minimum price because someone may offer a service that is only worth $1 and it is not a good idea to offer it for $2.

    Kind regards,
    MasterA
    10 years ago

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    cdrocks

    cdrocks

    Thanks for your response I am just throwing out the question. I've always heard all my life people comment about prices being too low or high on certain things and they wonder why? I would agree with you that people reselling your services put effort some more than others. However, I've experienced the stress of someone else that is selling my product for $50 dollars or more elsewhere. It is like having the stress put on you for a $50 dollar value that you are only getting a dollar for. That same person will buy the same product from you for even probably 10 times that amount if that was the only choice available. Therefore I feel that there is such a thing as something being priced too low. At least if you are making a few more bucks on selling something it makes up a little for the stress factor lol!
    10 years ago

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    MusicMoguls

    MusicMoguls

    This is the point I have been making for a year now lol. I'm glad we are on the same page we need to come together and find a price and stick to it...
    10 years ago

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    Lynne

    Lynne

    Yes I agree that there should not be a minimum price here, I think it works really well that sellers can set their prices as low as they want.
    10 years ago

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    MusicMoguls

    MusicMoguls

    The pricing for services here have to change, From a business owners standpoint i would want a higher dollar amount per transaction. We can achieve that as sellers if we come together and decide a price for certain services and stick to it. If we cannot come to an agreement seoclerks may have to force a flat rate, because these low prices are not good for us OR seoclerks.com. We need to raise the amount of transactions and also the amount of money per transaction. Im not saying lets do a $2 minimum, but the $1 services have to offer less plays, views ETC. Many of the categories have gone crazy with this price war.
    10 years ago

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    Lynne

    Lynne

    I'm not sure that regulating everything so closely is needed.

    I won't usually buy a $1 service anyway, it is just way too cheap. I think the only $1 I have purchased is to share a link on Reddit.

    I don't think services at $1 are quality so I skip those over. If you are priced higher I am sure you will get sales as long as you provide a quality service.
    10 years ago

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    cdrocks

    cdrocks

    I agree I have never been a regulating type of person either, but some things it is hard to turn a blind eye to also.
    10 years ago

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    cdrocks

    cdrocks

    Yes, try being the supplier of a major reseller service online! I sell them soundcloud plays for 3 dollars they resell it for $250 I just recently found this out after much research.
    10 years ago

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    Topseoservice

    Topseoservice

    Its true that finding optimal price for your service will help you to get more sales. However that does not mean you need to slash your price to get more sales. That may temporarily help you to get more sales, but in long term it may not help your business.
    10 years ago

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    EliteWriter

    EliteWriter

    Exactly. You need to think as if you are a shop owner and you set a period of time where you announce a sale. You cannot keep prices slashed forever. Besides a very low price can reflect negatively on the quality of what your are offering, and in terms of services, it could hint that you are an inexperienced seller who is willing to earn very little as long as you earn something. In the long run that is not feasible at all.
    10 years ago

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    EliteWriter

    EliteWriter

    I do not like the idea behind Fiver where you are made to charge five dollars. There are services which cost more or less, and I definitely prefer being the judge of my own pricing. It is better this way as I can decide what works best depending on demands clients have, my experience, the time that I can allocate on the particular job, and also I can take into consideration how much other sellers are charging. On Seoclerks we get to set our preferred prices, and when we feel like it we can slash them with a sale - that is definitely the best option in my opinion.
    10 years ago

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    Everett

    Everett

    I don't like that system as well. Since I sell PHP scripts, I can not afford to sell my scripts for $5 each. That'll just be a total waste of time. It can take me up to 6 months to finish a PHP script, and then to go and sell it for $5 would be pathetic.

    I personally believe you should price based on experience, and how long it'll take to perform the work needing to be done. Also, you want to up the price just a bit to make it profitable in case you go through third parties, or in my case pay for hosting, etc.
    10 years ago

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    Everett

    Everett

    Technically you should price your service on what's it worth. So for instance, if I sell a MMORPG text-based script coded via PHP I'll generally look at how much similar scripts go for and try to work out a common average price. Sometimes I'll mark my item on sale, and bring in customers that way, however you don't want to sell yourself too short.

    It's best to work out what's best for you, along with the average price for a item/service that is similar to your own. You don't want to sell yourself too short. Know your worth as a freelancer, and as a person.
    10 years ago

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    EliteWriter

    EliteWriter

    Very well said Everett - we need to appreciate ourselves and the time we devote. I cannot stand it when you see people who decide to write, for example a 500word article for $1 or even less. You can see this very often on the WTB bids for example; in fact I created a discussion about this a couple of weeks ago because I just cannot understand how they decide to 'waste' their time like this, while also affecting the overall perception that buyers have every right to pay such low prices.
    10 years ago

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    Everett

    Everett

    Lower prices always equals lower quality. Even if you are a veteran writer you probably won't put too much effort in a post that will cost $1. Why? Why would you?
    10 years ago

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    MusicMoguls

    MusicMoguls

    I think we need to come together as sellers of seoclerks and find a price and stick to it. These resellers are starting to make HUGE profits when we do all the work and make nothing. We are the suppliers of we came together and agree on a price they will have no choice but to accept what we offer. This has been on my kind for a long time if we lower the amount of plays the orders will increase and we will be able to complete orders faster and make more money. I'm mainly speaking about the soundcloud price war but this needs to be done for all categories.
    10 years ago

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    TommyCarey

    TommyCarey

    If you increase the minimum then you'll just open up the opportunity for designers and programmers to set up a competitor and set the minimum at just $1. If that happened, SeoClerks wouldn't be "the lowest" priced marketplace in the world. Fiverr has a minimum of $5 and it's a nice gimmick, but you can get the same thing here for $1 to $4. I'm sure there are people selling on Fiverr and then coming over to SeoClerks to purchase the product. They'll act as a middle man and the buyer has not clue to who is actually doing the work.

    I use to be a middle man, I still kind of am at times, and it works well if you don't push crappy services. I still offer my own services at $500 a month, but I'm sure there are some people in India who can do it for $100 because of the conversions Price slashing on services. When is a service priced too low? I can't always compete with the prices of India, but I can offer people in the USA something a person in India can't, no language barrier and they can talk to me over the phone very easily Price slashing on services. When is a service priced too low?

    Anyways, I'm starting to ramble lol. As a freelancer if you're not buying and selling then you're just falling behind. Sure people can price slash into oblivion, but if you push your prices down too low then you're just screwing yourself over. People in India can offer a service that takes a couple hours to do, for $1. A person in the US cannot do that and they will quickly learn that it's difficult to compete in this niche without paying some people outside of the United States to do some work for you. I pay plenty of people outside of the US for work, not only because it costs 1/4 of what I would pay someone here, but they are good at what they do and want to keep me as a person who sends them work Price slashing on services. When is a service priced too low?
    10 years ago

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    Barida

    Barida

    I don't think there is a time when the price of goods and services tends to be considered low. I mean what you sell your products depend on how the buyers are demanding for it as well as how the other rivals in the business are acting. So, if the prices of other rival products are quite high, raising yours is not a bad thing to do.
    9 years ago

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    		/opt/clerks-staging/docroot/libraries/adodb5/adodb.inc.php 1899 CacheExecute() getUserProfileImage()

    SELECT * FROM seoclerks.members WHERE USERID='617077.jpg'1SELECT profilepicture FROM seoclerks.members WHERE USERID='617077.jpg'

    		/opt/clerks-staging/docroot/libraries/adodb5/adodb.inc.php 1899 CacheExecute() getUserProfileImage()

    select * from categories_faq order by name asc1select * from categories_faq order by name asc

    		/opt/clerks-staging/docroot/libraries/adodb5/adodb.inc.php 1899 CacheExecute() insert_GetFaqCategories()

    Invalid SQL

    count(*)sql1error_msg

    Expensive SQL

    Tuning the following SQL could reduce the server load substantially
    LoadCountSQLMaxMin

    Suspicious SQL

    The following SQL have high average execution times
    Avg TimeCountSQLMaxMin