Minimum Bid Restrictions

I wanted to bid on a particular project over at Elance the other day. The work sounded interesting and was something I was familiar with, the guidelines were clear, and the person who had written the project up seemed to be someone I’d like to work for.

I sat down, worked out an estimate that I thought was fair and reasonable for both the potential client and myself, and then got ready to make a bid. When I hit submit, though, I got an error message: Minimum bid cannot be below $300.

Blink, blink.

I looked at my proposal: I had worked out a rate of $250. I was in the right price range, I knew what the competition would charge… but I hadn’t charged enough?

There’s a little bit of psychological perception that goes along with price tags. Plenty of people think that no one with low rates is going to do a good job. They believe that if they pay a lot, the service or product must be great. That’s one reason why brand name goods sell so well.

Here I was, a great service provider with a fair rate that wasn’t blown up, and I couldn’t bid on the project. Unless, of course, I jacked my price.

My options were to boost my price rate beyond what I felt was a justifiable rate of pay for the work involved or let the project go. I could’ve earned more money for the same work just by adding a hundred bucks onto the proposal.

I didn’t bid. I could’ve, but I didn’t. Overcharging isn’t my style, and I don’t think it’s right. I feel bad for the client, who is going to have plenty of providers take advantage of the situation. Some really do charge quite a bit of money and they should; they have the credentials to back up their price. The client might’ve had just as good a job from someone else at a lower rate, though.

If you’re looking for a freelancer, keep your options open. Let everyone bid, high or low, and avoid limiting your options with caps or minimums. You may just find someone who does great work, and they only cost a few dollars more than you would’ve liked to pay – no big deal, and you’ll get better results. You may find someone just as good, and a little cheaper than you expected to pay.

Remember: Price doesn’t always equal quality. High or low, it goes both ways.

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