You're not making sales because you're too cheap

I could end the thread right there, but I should probably elaborate a little.

There's one thing I can't stand when it comes to online work, and that's cheap competition. Competitors so desperate for money that they'll undercut you down to the bare minimum in an attempt to get the sale.

Here's the thing, they're still earning the bare minimum.

Here's why this needs to stop:
The obvious first reason is that they're bringing down the entire value of the market. $5 in Pakistan won't go as far as $5 in the US, for example. You're making people poorer.

Secondly, and more to the point of this thread, a lot of people don't actually want to buy cheap stuff. Because in their minds, cheap = crappy. For example, I'd much rather buy a nice new car for $20,000 than a crappy second hand smoking pile of scrap for $400.

You might start arguing with me at this point by saying you'll lose the job if you charge more, because people don't want to pay more. I disagree. Sure, there are some stingy clients out there, but from my experience, professionalism and the appearance of "being an expert" goes a long way when it comes to charging more for your services. Dont sell yourself short. Clients are people too, and if you show them your worth, what makes your services "special", they'll willingly pay more. I speak from experience.

To summarise:
Charge more.
Forget the stingy clients.
Act professionally.
Profit.

It could be a good strategy

YES! That's right! Keep the good work on bro!

As I always say you get what you paid for.

I could tell numerous stories on that.

I wouldn't let someone who doesn't charge the appropriate amount for what they do work for me. It means they're likely clueless.

"Competitors so desperate for money that they'll undercut you down to the bare minimum in an attempt to get the sale."
It's not just the sellers who are dropping prices, they are sometimes forced by buyers.


Driven by customers, sellers will trim their margins..
I go to car dealership and see a car for $25k, I drive 5 miles down the road to a differenct dealer for the exact same car and say 'can you do it for me for $24k. 'This guy says ' yes, want to test drive it or buy it now' I reply ' write me that price down so I don't forget and let me get back to you.'

I go back to dealer 1 with this offer of the car at $24k, say write down for me your very best price. He comes back at $23k.

I go home, email 5 other dealers, tell them I can get this model, brand new for $23k what is your very best price, one time to sell yourself to me.

Now I have prices as low as $20k. Who am I going to go with?


I am a great salesman < even though I say that myself > however I am just as good as being a buyer.

Great advice - I could not agree more

My two cents on the subject, from my experience so far is developing online brands in a wide variety of niches is I think it is good to do a wide variety of research on your competitors before delving into a particular niche, particularly regarding pricing deriving the mean amount of what they are charging for services I want to offer & keeping it within 13-22% mark up. People think its crazy but again, bonding yourself inseparably to your clients via a customer support model which provides an attention to detail that your end users will WILLINGLY hand over a little more $ in the end, IF they feel adequately taken care of or 'apart' of some kind of rapport

Great for freelancers

its true that sellers have to make even each month at least so sometimes to get the numbers concessions will be made but to do this all the time would not be good as you mention

MisterF said:

It's not just the sellers who are dropping prices, they are sometimes forced by buyers.

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For sure, this actually happened to me once a couple of years ago, and one of my competitors messaged me about it. Though it brings me back to the "some clients are stingy". Personally I've had a few occasions where a client has requested a discount because "X has offered to do the job for less" and I've flat out refused, and I still got the job at my higher rate. People like to take chances but you are allowed to say "no" sometimes I think.

I have to agree for the most part with you, when I raised prices for one of my services I found that it cut out an undesirable type of customer from my business.
I think we all know the type; angry, entitled and rude, not willing to read documentation or help articles but still wanting the world for $5/mo. This enables the focusing on resources on more reasonable clients.

When you are in a commodity market though this type of strategy is not as easy to follow, unless you rank top 3 or are well established as a market leader

just my 2 cents

Also - price should back up the worth.

ehh I half agree with you, but it really depends on your niche/market/USP.

If you are a company selling affordable cars, 20K might be too much. If you are McDonalds, charging £10+ a meal would be too much. etc. Being cheap (affordable) is the USP.

But, if you are selling a premium product, it should always be sold at a premium price - that'll i'll agree with you on.

Someone not making sales will not normally be down to the price, it'll be down to them lacking in sale's skills.

Conor said:

For sure, this actually happened to me once a couple of years ago, and one of my competitors messaged me about it. Though it brings me back to the "some clients are stingy". Personally I've had a few occasions where a client has requested a discount because "X has offered to do the job for less" and I've flat out refused, and I still got the job at my higher rate. People like to take chances but you are allowed to say "no" sometimes I think.

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Ah yes for sure.

Old saying, ' if you don't ask, you don't get'. Worst they can do is refuse a discount.

It is also different depending on what you're selling. A Bic ballpoint pen is the same irrespective of where you buy it from, but a service is different. I can go to 10 sellers for Edu backlinks ( as an example ) get 10 different prices but also 10 different standards of quality.

Prime example is article writing. What one person regards as high quality, native English, others will cringe at.

MikeyMikey13 said:

Someone not making sales will not normally be down to the price, it'll be down to them lacking in sale's skills.

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For sure. You need to be able to make a sale before you can start refining your method. I just think that a selling point should never be "we're cheaper than anyone else" when it comes to providing an online service.

MisterF said:

Prime example is article writing. What one person regards as high quality, native English, others will cringe at.

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I think it helps when you're an established brand, mass producing products. You can do whatever you want then.

Contrary as it might sound to the whole point of my thread, I do believe that the crappy services have their place. Much like my example with the crappy car vs the nice car. There will always be crappy cheap cars for sale, and there will often be people buying them. But people can see right off the bat that they're crappy. They know what they're getting, and they're getting what they pay for.

My problem comes in when people start offering good quality services for stupid amounts. Imagine if someone started selling brand new Mercedes type cars for the same price as the crappy cars. They're just bringing the whole value of the market down.

It's probably a little mean telling people to know their worth, and expect them to realise they're one of the crappy service providers. But I do think people should stop charging as if they're ALL crappy service providers. If you know you've got a good product, don't sell yourself short.

Too bad people who provide crappy service sometime charge more too!

I charge what I feel is a fair price, I allow a little room for negotiation but at the end of the day if a client can't afford my prices then I don't take them on.
I explain clearly how I have arrived at my price and I warn them that although they may be quoted cheaper prices they will not receive the results they want or the same level of service and professionalism.
Also my experience is that in the past, those clients where I have given a generous discount too, expect way more hand holding, more updates and generally can become a pain in the ass.
I reject more clients than I take on.

Conor said:

Competitors so desperate for money that they'll undercut you down to the bare minimum in an attempt to get the sale.

Here's the thing, they're still earning the bare minimum.

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So, what they do works for them just fine, since their alternative at that point is nothing.

Here's why this needs to stop:

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Nope, *it* doesn't need anything. You may need it to stop, but that's not their problem.

The obvious first reason is that they're bringing down the entire value of the market.

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In which case, that's the real value of the market. That is what a market's function is - a constant flux on matches between people who provide something and people who are willing to pay for it. You (anyone) doesn't get to wake up one morning and say "it should be higher". It is what the market participants decide it to be - each by making their own tiny transaction. The torrent of those tiny transactions is what defines the market value.

$5 in Pakistan won't go as far as $5 in the US, for example. You're making people poorer.

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Someone else can only make you poorer if they steal your existing money. Money you think you're entitled to but don't get, that's not them making you poor. That's your failure to provide enough value in order to get the equivalent amount of cash in return.

Secondly, and more to the point of this thread, a lot of people don't actually want to buy cheap stuff. Because in their minds, cheap = crappy. For example, I'd much rather buy a nice new car for $20,000 than a crappy second hand smoking pile of scrap for $400.

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In which case, those people who compete in price would be at a disadvantage - but then you'd be at an advantage, so what is there to complain about?

To summarise:
Charge more.
Forget the stingy clients.
Act professionally.
Profit.

Click to expand...

That's a great strategy IF the vendor is up to par. A significant size of vendors in any given market is not up to par. So for them, price competition is the only viable means.

MikeyMikey13 said:

If you are McDonalds, charging £10+ a meal would be too much. etc. Being cheap (affordable) is the USP.

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