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| Thread title: Minimum price for offers (all offer forums) |
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12-08-2006, 09:04 PM
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#11
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Status: Narassist
Join date: May 2005
Location: USA
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Posts: 4,469
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Originally Posted by Bryan Le
I don't think we should ever incorporate this. Besides the fact that designers should be able to price their work at whatever they feel it is worth, and what it will sell at, it is simple economics that if you incorporate something like this, it will fail.
This tactic is called a "Price Floor" - a set price by an overseeing organization that no business may price under. Governments have tried repeatedly to incorporate either a price floor, or a price ceiling in many situations that a market was failing in order to help it out. In almost every case, it has failed.
So if you set a price floor, you will end up getting something like this:
Now, for some of you guys who won't understand this, let me explain...
Right now, we have a decent price equilibrium - a normal price that is about an average of $40.00 (marked P(e)) per design sold. We have a decent number of buyers (marked Q(e)).
By messing with the pricing, and incorporating a price floor (to say $80.00) - marked P(1) - you will increase supply - more designers will want to sell. However, this will lower demand, and now no one will want to buy any designs - marked Q(1).
This will create what's called a "market failure" in which the only designers that prosper are the ones that are already in the market...or in our case, the good designers with a reputation. The little guys, or the ones that need money quick, or want to get rid of something, will never be able to make any money at all. Furthermore, you'll drive potential customers from all of us because no one wants to be forced to pay a minimum of $80.00.
Sorry to give you an essay, but I felt that I had to make a strong arguement before this rule was enacted. It'll kill the marketplace, and it'll make a lot of designers suffer.
Sorry, I took a couple courses in economics. |
My wants do not reflect what the staff decides to do  Or else you'd see bennett ads everywhere. 
The reason we were looking into a forum with mins is to drive away all of the 'buy my template for $1!' characters.
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12-08-2006, 09:18 PM
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#12
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Status: Senior Member
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Location: New York
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That's an absolutely horrible idea.
Leave the 'economy' how it is. It should remain a capitalist economy.
If you can't compete with someone who sells a template for $1, then you lose. It's simple. I can't even put into words how bad of an idea this is.
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12-08-2006, 09:21 PM
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#13
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Status: Narassist
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Location: USA
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Originally Posted by MaxS
That's an absolutely horrible idea.
Leave the 'economy' how it is. It should remain a capitalist economy.
If you can't compete with someone who sells a template for $1, then you lose. It's simple. I can't even put into words how bad of an idea this is.
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I believe the main arguement was not to drive away those charging little. It was merely looking for ways to bring back 'more professional' freelancers rather than the $1 crew.
Though if anyone has any ideas on how they would solve them, feel free to throw up your idea and we can all discuss them
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12-08-2006, 09:52 PM
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#14
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Status: Designer
Join date: Aug 2006
Location: Manchester
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I supportf this idea, but agree that maybe the minimum price should be $40 and the reason NO lower is so that this place gets a bit more professional.
-Alex.
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12-08-2006, 10:37 PM
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#15
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Status: Request a custom title
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How about this. If you want to drive away the 'Buy My $1 Template Please!!' crowd then do what sitepoint does, and charge for a post. But then you will loose a lot of activity in the market place. And already our market place isn't that good. Its safe to say a lot of kids back out of there purchases.
My solution is to either leave the marketplace alone or get rid of it. But if we leave it alone then more threads like this will appear; also the quality of our market place will continue to deteriorate. And if we get rid of it then we will lose 55,000 posts which also means we will lose a whole lot of activity. But this isn't a marketplace forum, but a forum about Freelance Web Design, Programming, Developing & Webmaster forum.
While we solve one problem, another arises. I really like the way Bryan presented his point, which he does make a very good point. Looks like this could be a very difficult decision for the staff.
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12-08-2006, 10:43 PM
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#16
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Status: Senior Member
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Location: New York
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The marketplace is not deteriorating by any means.
It's very simple. If you can't compete with someone who works for $1, you need to move on. There are plenty of people that are willing to pay for quality. If you're not able to capture that buyer, you're clearly lacking.
Edit: Great post, Bryan Le. He covered it. Most of you need to brush up on your economics.
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12-08-2006, 10:45 PM
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#17
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Status: A legend among men
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Location: Germantown, Maryland
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No one ever buys the $1 templates anyways. And if you can't manage to sell something that is of better quality then those $1 template kids, then sorry - but you do not need to sell anything at all.
Putting down a price floor isn't going to help anyone sell anything.
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12-08-2006, 10:51 PM
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#18
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Originally Posted by MaxS
The marketplace is not deteriorating by any means.
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Could you explain why you feel that way? I'm not trying to be a jerk, I just want to see what others see in the marketplace.
And I agree with everybody saying that if you can't compete with a $1 seller then leave. However I don't like how they present themselves in the forum.
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12-08-2006, 10:58 PM
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#19
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Status: Senior Member
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Location: New York
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Originally Posted by JamesH
Could you explain why you feel that way? I'm not trying to be a jerk, I just want to see what others see in the marketplace.
And I agree with everybody saying that if you can't compete with a $1 seller then leave. However I don't like how they present themselves in the forum.
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Well, how is it deteriorating? I think it's doing fairly well for a Talkfreelance marketplace.
How can you expect there to be hundred & thousand dollar sales on Talkfreelance. It's not Sitepoint or Digitalpoint.
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12-08-2006, 11:01 PM
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#20
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Status: Ruby on Rails Developer
Join date: Oct 2004
Location: England, UK
Expertise: Ruby, Rails, jQuery
Software: Chocolat, Sublime Text 3
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Really seeing people dropping their price to try and interest folk isn't a good way. If it doesn't sell at $200 maybe members should ask why it isn't selling at that price and do something to sell it at that price.
I could sell something on SitePoint for $400 that would probably not even be looked at here, if it was it would go for $50, if you get what i'm saying, the marketplace in here seems to be where to get all the cheap stuff and rip off the people who have worked hard on stuff, and they're only selling at such low prices because they wouldn't get any people amongst TFL community who would pay good money because they don't take the time to see what hard work and effort has been put into the work being sold here.
I was only thinking of the members and those trying to sell some of their work for a decent price, not being ripped off. I think i've learnt my lesson selling here, and i'm a member, i'm sure i'm not the only one sitting here thinking yourself or others you notice being ripped off but i probably wont sell much on here because the members who do browse the marketplace are looking for top quality stuff for dirt cheap prices, i just don't think it's fair.
Just my $0.02 on everything.
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