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Facing fierce contest from low price contenders

kat303
Community Guru
Kathy T Member Since: Jul 17, 2015
21 of 26

Simple solution for these low paying jobs. Put in a proposal for a low amount but specify how long you would work for that amount. Example - if there's a job for designing a logo for, lets say, $5. You can put in a proposal saying that you'll deliver 10 minutes of work. Anything beyond that time can be discussed as to price, requirements and time.

prestonhunter
Community Guru
Preston H Member Since: Nov 24, 2014
22 of 26

Regarding the possibility that a $20 bid you saw when a client posted a job posting for creating a website, with a $2000 budget:

 

I agree with the forum participant who said the $20 bid may have come from a newbie entering an hourly rate.

 

But that's not all. I am by no means a "newbie." but sometimes I personally enter in hourly rate for a large fixed-rate contract.

 

So I'm a real example of somebody whose bid amounts are not *necessarily* an example of a low-ball "race to the bottom" bid.

 

Sometimes I see a job posting (let's take "$2000" as an example) which I feel could be a legitimate job, but really isn't described sufficiently by the client, or even understood sufficiently by the client, for me to be able to provide an accurate fixed-price bid. I feel like I can do this project, but the project isn't in a state yet that would make for a good fixed-rate project.

 

I have in the past put in my hourly rate as my bid, and explained in my proposal that I would be happy to work with the client on the project, consulting with the client and doing preliminary work at that stated hourly rate, until we can crystalize a solid plan for work that can be done by myself, or others, using a fixed-price contract.

 

So, yes, although I think it may be rare, it is quite possible that some of the "ridiculously low" bids you thought you saw were actually hourly rates from relatively expensive contrators, and now from low-ballers.

jsutherland
Community Guru
Jean S Member Since: Oct 22, 2007
23 of 26

@Preston H wrote:

 

I agree with the forum participant who said the $20 bid may have come from a newbie entering an hourly rate.

 

 


 This is something I do quite often. If fixed price is not appropriate I'll explain in my proposal that this is my hourly rate and that the contact might be better as hourly rather than fixed rate.

prospect39
Community Leader
Peter G Member Since: Aug 1, 2015
24 of 26

There are four basic "value propositions" with which freelancers can compete:

 

1. Price value.

2. Experience value.

3. Quality value.

4. A combination of the above.

 

From the perspective of freelancers, competing solely on the basis of price creates a lose-lose scenario.  Some competitor will always be willing to undercut your price.  Instead, what you need to do is target prospective clients whose preference is for some combination of value propositions or - even better - who strongly favor experience and quality over price.

 

All too often, it's impossible to convince price-conscious buyers that experience and quality are more important. In the vast majority of cases, you'll be wasting your time with these people.  Instead, the best approach is to target only those buyers who care less about price and more about experience and quality.  There seem to be very few such buyers on UW, but there must be a handful out there ... somewhere. Right?

lysis10
Community Guru
Jennifer M Member Since: May 17, 2015
25 of 26

Lowballers ain't even contenders when I step up to the plate. I roll up, give them a pirate offer they can't refuse, and I thank the lowballers for playing and say "nah, I'll take this booty guise."

 

I like the booty.

tanner-james
Ace Contributor
James T Member Since: Oct 12, 2015
26 of 26

If you have been regulaly reading this forum then you will know that this is a moan that often appears on here, simple answers are:

 

 - If a client really is trying to get the cheapest deal for a job that is way above his budget etc, then he should not be on here and if he wants to really pay peanuts then he will get monkeys - simple. A proper client will see through the BS of bids.

 

 - Preston (dear Preston) he seems to get attacked on a regualr basis because of his commennts -  Now I have been an avid reaser of this forum for a while now and I do think that sometimes Preston and his commesnts may come across as patronizing or otherwise, the guy does know what he is talking about (just paypal me that $5 later)

 

 - Never heard of 'Fiver" but if the name is anything to go by then there is no wonder you only get paid a fiver for a job- so stop moaning.

 

Lowballers are normally newbiews with profiles stolen from someone else, no jobs to their names and going 'All in' 

If you are good at what you do, have a good record etc then you will always be in the game - question is always the client   - Check them out first, how much they paid out, how many jobs they hired freelancers etc. All this helps

 

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