What is the point of a budget when PPH doesn't stick to it?

Comments

6 comments

  • Gadi

    Hi Derek, what I noticed is that when buyers place a budget on jobs, oftentimes it's unrealistically low, driving out any professional prospects and leaving you with proposals from the trashy PPH sellers. If a buyer is uncertain about the budget, then that input should remain unanswered when posting a project.

    If all sellers are sending a proposal with the amount of your budget, it might say one thing - your budget is too low, yet they still want to win the job and are willing to do it at a discounted price (of what it should really worth for them), therefore they will undoubtedly specify the highest amount you are willing to pay.

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  • Derek

    Hi Gadi, I totally get what you are saying but judging on how long the jobs took, they must pay themselves very handsomely. I also had to pause the project as I was inundated with responses within a very short period of time.

    This wasn't the main reason for my frustration though, as the title suggests, it was more to do with the value of the budget and PPH adding their fees on top of this rather than including this within the budget. I had a budget of £120 for these little jobs. The company credit card was then charged £134.40. This does not fall in to the budget I had to complete the project.

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  • Simon

    Hi Derek,

    The 10% charge that PPH add to your budget has upset a lot of people, buyers and sellers alike. There has been a noticeable drop in business since it was introduced. I have started telling the buyer about it in the proposal if I notice they have not used PPH before. PPH also charge 20% to the freelancer and often the buyer thinks they are paying the fees, the seller thinks they are paying the fees, when in fact they both are.

    It is further complicated by the fact that some freelancers are VAT registered, like me, but we don't know if the buyer is registered and able to reclaim it, and it can't really be added to the budget if you have already set it. I have to take the hit myself and call a £120 budget £100 + VAT, leaving me with £80.

    If you are not sure about the budget, you don't have to specify the budget and the freelancers will have to fill in their own amount. If the freelancers submit a bid that is below the average, they get a warning telling them to raise it to a certain level. I find this average drops over time as freelancers are submitting lower bids to try to win the project.

    Another option is to use an hourly rate. When we submit a bid as a freelancer we have to specify an amount, and this can be difficult if the job requires some clarification first. With the hourly bid we can give an hourly rate and then indicate how long we expect it to take when we know the full details.

    One other point. When you post a job, notifications are sent out immediately to freelancers asking them to bid. This is why you get so many bids in the first few minutes. Some of the projects are awarded very quickly and I often find I can write a proposal and by the time I press the submit button, the project has been awarded and it's gone.

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  • Derek

    Hi Simon,

    Thanks for your response, I am normally able to find what I am looking for in the hourlies where the freelancers can set their on prices there but this was the first time I used the post a project session as I wasn't able to find what I was looking for. I won't be keen to use the service again.

    It is disappointing to hear that PPH are really screwing things up for everyone.

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  • Gadi

    Hi Derek,

    From a seller standpoint, I find the proposals system of PPH very discouraging to participate in. For the vast majority of jobs, technical details are lacking and it is impossible to be able to submit a decent proposal without having first a long discussion with the buyer on the exact requirements and the technical specs. Another reason which drives me away from participating in bidding on jobs, is that usually the average bidding price of a job is being tunneled downwards by the less experienced sellers who try to land their first few projects and are willing to work for half-free just to be able to harvest some reviews. If you think you end up paying more with the proposals system (if compared to Hourlies purchase), then I believe it's the other way around.

    Nevertheless, I completely get it why you are annoyed for the cost top up beyond your budget. PPH should sort that part out ASAP, or at least make it extremely obvious to buyers that the price is VAT excluded. If only PPH cared about it, I'm sure they could have had a better way to deal with this issue and not frustrate buyers, but probably they couldn't care less.

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  • Derek

    I think you've hit the nail on the head there Gadi, they couldn't care less. About either the sellers or the buyers it seems.

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