Low fixed price

[a4cc049a]

Can I negotiate a potential clients' low fixed price offering through the proposal process?

An example would be a potential client wanting a logo for a fixed price of $5.00. I see this all the time, Should I just mark it inappropriate?

[florydev]

$5.00 is actually the default price so it has been said many times clients put that when they don't know what to put.  I never let anyone client or otherwise dictate what I charge.  I see a project I want, I go after it and I put what I think it will take to do it.

Sometimes it works, most times it does not.

[feed_my_eyes]

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Gary S wrote:

Can I negotiate a potential clients' low fixed price offering through the proposal process?

An example would be a potential client wanting a logo for a fixed price of $5.00. I see this all the time, Should I just mark it inappropriate?

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$5 is the minimum price allowed for a fixed price project on Upwork. You don't have to agree with it, but the client hasn't broken any rules, so there's no point in reporting it. And of course, you CAN try to negotiate, but I wouldn't bother for a logo project; that client will easily get dozens of bids from people who will happily steal design something for that price. 

[prestonhunter]

A job posting is just the beginning of a conversation. A $5.00 amount in a job posting may not mean anything at all.

[bizwriterjohn · Accepted solution]

One suggestion is to pick a budget and bid that back.  The people who do this have precious little information in the job write-up, do not know the client, have had no questions answered -- and are guessing as to true scope. Guessing is bad.

Handle them.

Reverse the tactic.  Bid $5 back.  Indicate CLEARLY in your first line in the response,  I repeat indicate CLEARLY in the first line, so no instance of "bait and switch" is experienced.

"The $5 response bid is a place holder.  I am providing it so I may establish communications.  With respect to you and the project, I will need more information to responsibly bid.  Those who are bidding fixed fees without a first dialog are guessing -- and guessing is not how you want to start your project."

In essence, be a merciless competitor with those who guess at budgets or have their pat answers for cost. 

1, Establish contact, make SURE it is known you are not in bait-and-switch.

The reflect back the probable strategy the prospective client is using -- put in a place holder.   Use your thoughts and words to place your business boot on the throat of those who bid with but a few lines of information as their source of knowledge. Use their tactic against them.

Compete without mercy.

[a4cc049a]

Thank you, John. Bidding back with their bid amount "as a placeholder" for more conversation makes terrific sense.  Coincidentally, I used something similar when a potential job came up that was right up my alley and I was excited about it but felt that the fixed price was too low, inviting them to have a conversation about the scope and reserved the right to change my bid based on the agreed-upon scope (I never heard back from them and the job disappeared from my proposals the next day).

Great solution and eloquently expressed. Thanks again!

[data_divas]

I applied for a job that was a perfect fit for my skills, I bid a dollar more than what they stated in the hourly range because it's what I'm charging and I wasn't hurting for work.

They came back to me, asked me a few times if I couldn't do it for $1 less, I declined, said I understood nicely, and wished them good luck in finding an applicant in their price range - but got the job. 

Yeah it was just a dollar but it's what I wanted to make for this job so I held firm.