How To Know You’re Overcharging?
These are hints and will vary situation to situation. It is important that you read for client, the words they use and the ‘vibes’ the give off.
Always be proactive and one step ahead.
The first sign you are overcharging before all orders stop completely is when the behaviour of the clients you get start changing.
Occasionally you will get difficult clients but this will be a different kind of difficult. They are begrudgingly giving you money hoping you justify it.
Here are some of the behaviours you can look out for:
- Client keeps asking for more work to be done that is outside of the agreed job scope
- Client seems sour, doesn’t seem too excited
- Client keeps asking for guarantees, need reassurance
Why you shouldn’t overcharge
Leaving your client feeling cheated could mean a potential catastrophic bad review. Especially gigs that are plying the higher range premium pricing strategy. One bad review might instantly dry up traffic.
As I’ve mentioned in another post. Always err on the side of undercharging. The word of mouth and positive feelings you generate make it all worth it. Furthermore, if you have systemized your Fiverr system, the employee that you delegate to will be carrying out the work and you just have to make sure the order is executed to the right standards.
Avoiding price reduction
What if you don’t want to reduce your price?
That’s easy. Increase your value. If you have executed the hockey stick pricing strategy, you will find that you’ll reach the peak price that orders will start drying up and you’ll run into more difficult customers looking for you to justify the price that they have just paid.
Examples of extra value you can add into your service as a logo designer:
Quantity
Increase the amount of work done, from one logo to 3 logos.
Time
Increase the speed of work done, from one day to 12 hours.
Quality
Increase the value of work done, from a simple logo to an animated one.
In summary:
- Watch out for the signs of overcharging.
- Err on the side of undercharging.
- When overcharging, reduce price or increase value
