Successful Pricing Strategy & Product Differentiation Case Interview [Part 3]

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logo designer computer screen
Tom M "Smork" on Fiverr

Blazing tailpipes…

Stetson bull horns…

A cactus in a teacup…

These retro, rustic elements are some of the calling cards of renegade British artist Smork. He’s designed thousands of throwback logos for clients worldwide.

Tom M. (who goes by the alias Smork) is a seasoned logo designer who climbed the ranks to top-rated seller in just three years on Fiverr. He sets himself apart by specializing in vintage logos for that old-timey, tried-and-true look that sings both in print and digital media. Tom is a proud pioneer of the Gig Package, and knows how to satisfy a client while getting the compensation he so richly deserves.

This is the third and final interview of my three-part series speaking with some of Fiverr’s brightest and most successful. It’s been a privilege speaking with Fiverr doers about their strategies for pricing, packaging, and keeping up with their competitors.

Tom shared some fantastic insights about being a successful full-time seller on Fiverr. Let’s get started.

Packages Pricing & Product Differentiation Strategies

Nico: First of all, thank you for bringing your knowledge and experience to the Fiverr community. For those who don’t know you, can you give us a little background on what you offer and what has been your greatest achievement so far in terms of business growth within Fiverr?

Tom: I specialize in vintage-style logo design, be it a full-on old-school design aesthetic or a bit of a mix of old and new together. If you want something a bit different from the norm, I’m happy to oblige!

Along with being made a top-rated seller, seeing my little Fiverr shop grow over the years is incredibly rewarding.

Nico: In 2015, Fiverr introduced the Gig packages mode. What’s your best advice to get the pricing strategy right and boost revenue? What are the main package elements you particularly focus on?

Tom: I started selling on Fiverr in 2014, and, from day one, I always hoped a feature like packages would one day land. I was certainly glad when it did, as it allowed me to tier my design service accordingly.

Getting the right pricing strategy for me simply came down to experimentation. Starting out with a $5 package is great, but the aim, of course, is for you to be properly compensated for your time, and as long as the quality of the product is there, then the pricing should scale accordingly.

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Taking a look at other sellers on the marketplace is a good starting point. Look at those who are doing well, with a busy order queue, see what their packages are offering and where their package values start and end, and use that as an indicator.

For me, I didn’t look at any other sellers because I jumped on the packages feature within moments of it launching! But I was confident, having served a few thousand customers at that point, that I had primarily two types of customer. The first is generally someone who wants a simpler design, and has a pretty good idea of what they want and doesn’t need lots of detail – they just need someone with the skill to make it happen. The second is generally someone who wants a more detailed and unique design with more flexibility with changes and a bit more handholding through the process.

With these two types of customers in mind, I could confidently create a package for each, providing a tailored service for the customer on a smaller budget and the customer on a bigger budget with ease.

The graphic design category has a number of extras that, before packages, were a little bit difficult to properly communicate to the customer – things such as vector format, artwork transparency, color options, and so on. With packages, I can clearly list these for the customer on the Package so they know what they’re getting. The number of revisions is also an important one, and this too is now much clearer for the buyer when utilizing packages.

Nico: Product differentiation is a very important element to make your service more attractive and help increase revenue. How do you differentiate yourself from your competitors? What is your added value that makes your services unique?

Tom: I differentiate myself from my competitors by focusing on one thing: quality. A quality product and a quality service.

Fiverr is my full-time job, so I never take it for granted. I know that a customer who has ordered from me has chosen me out of potentially hundreds of others candidates, and there is no greater compliment than that. So I always go the extra mile for each and every customer who elects to hire me for their project.

My packages are priced slightly higher than the majority of logo sellers, which I think is often reassuring to some buyers who are looking for a professional service provider. When a customer lands on my gig page and sees nearly 3,000 five-star reviews and a varied portfolio of works, I like to think that speaks for itself.

Conclusion

Tom really helped me realize just how powerful Gig packages are. They’re an effective way to communicate with customers and to deliver exactly what they want. I respect how Tom values his time and talent and uses that to confidently price his services. He also drives home a basic but critical lesson: Quality will always help you climb the ranks.

This interview series gave me some great ideas, and I bet our conversations will help other Fiverr doers. I’m sure we just scratched the surface and so I encourage all our doers to share their knowledge with each other!

Do you specialize in graphic design? How have Gig packages helped you communicate with your customers? Share your story and your tips for success in the comments!

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Nicolo Grossi
SEO & content marketing expert with 7+ years experience, working at Fiverr since 2016 Nicolo is responsible to follow and implement SEO’s best practices and inbound marketing strategies in order to increase reach and exposure.
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Roger Brown
Guest
Roger Brown

Thank you Nicolo. Just discovered those interviews. Well done, great tips for all sellers

topaz_muse
Guest

All of the interviews are engaging and showcases how effective pricing and quality can bring home the bacon. However, the issue of convincing buyers that you are worth the price stated is at the forefront. I experimented with packages for both writing and illustration gigs in the past but those mainly got views and clicks; no orders.

Confidence and determination can do but so much.

Kibria
Guest

Thanks

itforce
Guest

it’s having great content very useful

SatishK
Guest

Really Awesome knowledge to have being a newbie here

Thanks a lot

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