I know our quality of service is far superior, and I know that all the people (or at least 90% of the people) pitching lower prices than us won't be able to deliver an end product that will be of much benefit to the client (even if they do manage to fulfil the technical requirements). We want to actually talk to buyers to figure out how and if we can actually help them, but most insist on us just sending a quote so they can screen everyone based on pricing before proceeding to discussions.
Consider that Elance is only one marketing venue. And though a segment of your market may shop there - you may find that you only end up with "bargain" shoppers.
If the product/service you provide is superior and you can demonstrate this to the marketplace then it makes sense that you should be able to price it higher.
You are currently offering a great value service to a bargain marketplace....So your current business model is bound to fail.
There are several things you can do to move your business forward.
For example - use Elance as a lead gen marketplace, offering a lower value entry level service that can be priced competitively and upsell to a higher value service.
For more ideas and a simple way to build a more profitable business model, give me a call.
Best of luck!
Answered 10 years ago
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