HomeХобби и стильRelated VideosMore From: Neil Patel

You Are Pricing Your Product WRONG! How to Determine Optimal Price for Profit

515 ratings | 23852 views
What should you be charging for your product or service? ►Subscribe: https://goo.gl/ScRTwc to learn more secret SEO tips. Find me on Facebook: https://www.facebook.com/neilkpatel/ Read more on my blog: https://neilpatel.com/blog Today I'm going to share with you how to determine the optimal price for your product or service. 0:29 Optimal Price Tip #1 The first thing you need to do is look at your competition. Is your product comparable to theirs? Is it better? Is it worse? Do you have the same feature sets? Do you have fewer features? If your product is easier to use, it has all the same features, and it's higher quality, you can price your product at the same price as your competition or higher. Now, if your product has fewer features than the competition or your service has fewer features, it's not as good, you don't want to be in the same price point. Ideally, you want to be lower. It's just common sense, right? 1:41 Optimal Price Tip #2 Now, the second tip I have for you and this is if you wanna maximize how much income you're making and profit versus capturing the majority of the market because the first tip I gave you, if you wanna put your price lower than the competition when your product's better, it's a great way to gobble up their market share but on the flip side, if you're trying to optimize for profitability, what you wanna do is split test your pricing. You can use Crazy Egg, and you can use Optimizely, VWO. Pick A/B testing tool. Create two pages of your product or service at different price points and keep playing with the price. You can increase it, and you can decrease it. Usually, you want to start off increasing it, and you want to see, alright, can I generate the same amount of sales with the higher price point? If you can, then you want to go with the higher price point then you don't want to stop there just because you got more sales on the front end. If you're unsure of how to price your product or service, leave a comment below with your product or service, tell me what you're thinking, and I'll give you some feedback. If you like this video, tell people about it, share it, subscribe. Thank you for watching, and I can hope to help you come up with the ideal price for your product or service.
Html code for embedding videos on your blog
Text Comments (162)
flosset (2 months ago)
would you buy a 4 dollar 350 ml lemonade bottle?
flosset (2 months ago)
@Neil Patel duh
Neil Patel (2 months ago)
Does it come with lemonade? ;)
Omar Masari (2 months ago)
Can I survey the clients saying How much services you want and how much you're willing to pay? so I can come up with different plans for different needs?
Omar Masari (2 months ago)
@Neil Patel Thanks man, much appreciated ❤
Neil Patel (2 months ago)
You can definitely do that
Soda Center (2 months ago)
we are dealing into fountain soda machine we want to scale up our business. can you suggest me anything
Neil Patel (2 months ago)
Create content that will attract local restaurants and food-service businesses and focus on local SEO
Cover Lê (4 months ago)
Hey, Neil. Before applying "price x volume", it is correct to apply Up-sell: Free - $ 47 - $ 97 - $ 197? And if I show a simple version of the free product to download next to the full version of the product to buy, will it value and sell? Thankful.
Neil Patel (4 months ago)
It is worth testing to see how it goes
EPIC America (6 months ago)
@neilpatel I have a question. Im working a digital product called how to build a shipping container retail store in 30 days for under $10,000 and I have no idea what to price it at. I dint see any other digital products like it in the market and Im thinking im only going to offer 1 tier. Can you help me on what you would do?
EPIC America (6 months ago)
@Neil Patel thank you Neil
Neil Patel (6 months ago)
Talk to your target audience to see what they would be willing to pay
fashionguyaustralia (8 months ago)
Thanks, lovely presentation.
Neil Patel (8 months ago)
You're very welcome!
David Robertson (11 months ago)
Hey Neil, I always price high with my offline business, the work I do is always good but most people cannot see that before they buy. As I price high I use less of my time and the people who would pay less are usually those who expect more and complain anyway - WIN/WIN.... As far as being comparible, I check the highest prices charged for the service and go just a whisker under and if I have to quote where I got this pricing I can always point them there, wins every time. I always make sure my job is "perfect" and people then use my highly priced services again! Forget checking the "backyarders" they are always gonna charge less, but they are working their butts off working for complainers, and if they can get away with cutting corners they usually do. Life is short man, love the vids & pods.
Neil Patel (11 months ago)
Thanks for sharing, David!
Guillermo Cabral (11 months ago)
neil you are very very big! my dream is some day to become a marketer as reputable as you. I would like you to offer as detailed as you can, such as pricing my marketing services as a marketing and social media consultant. thank you very much for everything you do, you are GOLD
Neil Patel (11 months ago)
Thank you very much for the kind words, Guillermo!!
ER Nationwide (11 months ago)
Reading through the comments Neil, and I have to say, don't listen to all of the negativity in the comments section. You're providing a great resource to the world and your followers. A ridiculous ton of people trying to start a company who haven't had an opportunity to get a degree in business or attend college at all, are in dire straights for the information that you provide on your channel. We are eternally grateful and thankful that you provide this education and information for free when very few others would. Thank you.
Neil Patel (11 months ago)
Thanks for the kind words. I definitely don't worry about the negative comments ;)
Shihabuddin Al-Masud (11 months ago)
Hello Neil! I am doing dropshipping. I don't have enough money to create a countrywide marketing or worldwide. The organic traffic is not as expected. As it is a product, content is 60% or more same as main supplier. What is some possible steps that i should take for sales.
Neil Patel (11 months ago)
Create unique content ;)
srikanth ponnuru (11 months ago)
Hi Neil I was managing social media(Facebook & Instagram - Paid camp's) for a spa massage centre in Dubai. My problem is, I'm not able to generate the business, like my competitors. The competitor is charging AED 89 / Hour, but we are charging AED 130 / Hour. More or less the service is the same, since our spa in 4-star hotel that's the reason we have the little higher price. Can you suggest me any tip or hack or suggestions or anything, where I can reach 2X customers? Please give me some solid idea.
srikanth ponnuru (11 months ago)
Thank you for your reply. I can't decrease the price, the actual price is AED 150 / Hour, but now I have made it for AED 130 / Hour for promotional purpose. Apart from that, I'm giving 15 mins free on other services(Jacuzzi or steam or sauna for free). As you told, In terms of charges and offering, I'm giving that already. But still my sales are down. Can you please please suggest me anything else.
Neil Patel (11 months ago)
Try offering more or charging a bit less
Rico s. (1 year ago)
Can all of these techniques be applied to the apparel industry?
Rico s. (1 year ago)
Thank you, looking forward to learning and working with you. I sent an email to your company.
Neil Patel (1 year ago)
Definitely!
Jennifer Lancaster (1 year ago)
Unfortunately, it does not apply to service business where you need to sell in person. It is more for online products.
Neil Patel (1 year ago)
Most of my strategies are for online marketing, Jennifer :)
Natalie Lim Poi Yee (1 year ago)
I have a membership website. All the content is only access by Login. I have changed the Title Tag and Meta description in every page. Unfortunately after 1week, the title tag is not reflected in Google Search. What shall I do
Neil Patel (1 year ago)
Did you fetch as Google in Search Console after making the change?
sachin raj (1 year ago)
Love you good video
Neil Patel (1 year ago)
Thanks!
Rey Tamayo (1 year ago)
Great topic Neil!
Neil Patel (1 year ago)
Thanks, Rey!
Quran Reciter (1 year ago)
Hey Neil. I'm selling a product about a particular oil that has some great advantages for male and female in terms of healthy and cosmetic. But, I'm confused about which gender I'll be optimizing for. And Iam also gonna add ebook as the compliment to attract the buyers. In the ebook, I'll fullfill a bunch of tips of using the oil. Do you have any suggestion for me Neil? I'll appreciate that so much.
Neil Patel (1 year ago)
Target everyone. You don't need to only target men or only target women.
Hassan VEVO (1 year ago)
I do not know that why are these two people do not like your content. Your video is completely fine, according to your thumb nail and topic.
Neil Patel (1 year ago)
There will always be people complaining. You can give some people a million dollars and they will cry that you didn't give them two.
SHOP RIDESHARE (1 year ago)
Thanks, Neil. This is just what I needed to hear.
Neil Patel (1 year ago)
You're welcome!
Thais Torres (1 year ago)
Loved it... I haven´t come before with this Idea... Using this kind of tools to experiment about the price of the products or services of my client ... I´ve just used it to improve their UX on the pages...
Neil Patel (1 year ago)
You should definitely try it, Thais!!
BVM INDIA (1 year ago)
I have another Question, Can I copy a content (some) from my one post to my another post, does google penalize me?
Neil Patel (1 year ago)
Don't do that.
5imov (1 year ago)
Hi Neil, Im trying to find small and mid sized businesses to offer them my services. Do you have some tip on how to find them? Im having hard time doing that. Thanks a lot!
Neil Patel (1 year ago)
Get them to find you by producing content that will attract your ideal customers
vijay kaarthigeyan (1 year ago)
How to write a business plan?
Neil Patel (1 year ago)
There are a lot of great resources and tutorials online about how to do that. I don't specialize in writing business plans so I am the wrong person to ask.
Oliva Sanchez Solano (1 year ago)
*What to do if we find duplicate, copied or plagiarized content from our website on the internet - or outside the network -?*
Oliva Sanchez Solano (1 year ago)
I contacted him and he blocked me
Neil Patel (1 year ago)
Contact the person and ask for them to remove it
Captain Vita (1 year ago)
How to optimize everything: 1. Trial 2. Error Repeat the first two Steps till happy.
Neil Patel (1 year ago)
YES
Mavrik Digital (1 year ago)
Great insight Neil! Thanks
Neil Patel (1 year ago)
You're very welcome, Nathan!
nitin sharma (1 year ago)
buzzsumo does not provide email address there is any tool to get those email address realted to any poular article shared people
Neil Patel (1 year ago)
Email addresses are hard - privacy issues. But if you can find ONE email address from someone at a certain company it's easy to figure out the email address of someone else at the same company if you know their name.
Pramod Chamling Rai (1 year ago)
Is it good to optimize the home page and how ?
Pramod Chamling Rai (1 year ago)
Neil Patel thanks lot
Neil Patel (1 year ago)
Yes. https://neilpatel.com/blog/seo-friendly-homepage/
Amey Indulkar (1 year ago)
Hie Neil; Always love to watch your videos. My question was what if I am selling financial reports of 50 companies. I want to sell all 50 reports together. 1. How do I find what will be right amount to sell all 50 financial reports. 2. If I do advertising; which platform is better to advertise financial reports should I go with Facebook ads or LinkedIn ads. Thanks for making awesome videos.😊👍
Neil Patel (1 year ago)
1. Talk to your target audience to see what they would be willing to pay 2. Test all platforms to see what works best
Bernard Pierre Paul (1 year ago)
Hey! Great tips. Here is a question for you, what if your competitors have been in business way longer than you, even you drop your price people still going with them. What is the next steps?
Neil Patel (1 year ago)
Provide more value, something your competitor isn't providing.
BAHUSUS COM (1 year ago)
hi neil
Neil Patel (1 year ago)
Hello :)
Barka Dia (1 year ago)
Hello Neil. I need your help. I plan to create my digital company next weeks or months. And there someone who want me to manage right now his Social Media pages like a Community Manager. Do I fix the price as l will when my company will be created or I must fix it as if he hire a Community Manager ? ( Excuse my poor english )
Barka Dia (1 year ago)
Thank you very Neil that's a good idea. I will follow your advice :)
Neil Patel (1 year ago)
Just be competitive. Charge what others are charging where you are and go from there. Once you gain more experience and start delivering great value then you can up your price.
Varun Kamal (1 year ago)
Neil, Pricing your product less should work according to my logic too... But Charlie Munger says pricing a bit higher than competition makes people associate your product with better quality... Because of "misjudgements from mere association" bias...one of the 25 cognitive biases... So which would be the best way to go...if the product is exactly the same as the competition feature wise...
Varun Kamal (11 months ago)
Tim Carey customers are biased... They ll always say they want it priced cheaper... But the same customers choose Coke over Pepsi... Pepsi is about 15% cheaper.
Varun Kamal (1 year ago)
Neil Patel thanks Neil
Neil Patel (1 year ago)
It depends on a lot of factors. That's why I think people need to test.
Alfredo Simões (1 year ago)
you are too much speedy.
Alfredo Simões (1 year ago)
Thanks and best regards
Neil Patel (1 year ago)
Sorry my friend. I'll try and slow it down a bit :)
Alfredo Simões (1 year ago)
You speak too fast and sometimes is not easy to follow your idea. Anyway i am learning a lot with you.
Neil Patel (1 year ago)
Not sure what that means
Israel MV (1 year ago)
Thanks Neil, I started a Laundry Delivery Service and match price of my competitor, eventhough I don´t have an app like they do, kept me thinking on lowering my price or add value to it. If any advice you have in this industry or in general-. Thank you as always!!!!!!
Israel MV (1 year ago)
Jennifer Lancaster thanks, I'll ask my clients
Jennifer Lancaster (1 year ago)
People do appreciate the speed of ordering on an app, but you might find an ever better unique benefit, like a faster delivery speed. Just ask your customers: what makes more difference to you: speed of service or ease of ordering?
Neil Patel (1 year ago)
You're very welcome, Israel!!
Jonathan oneill (1 year ago)
I think people just release content for the sake of it and this video offers nothing!! I was listening, but not anymore.
Neil Patel (1 year ago)
I will definitely lose sleep tonight.
metrokatz (1 year ago)
We’re launching a new company which will do things MUCH better than the other companies in our area. You’ll have to take my word for this. The problem is that it isn’t easy to communicate the value because it’s a dating company which is not scientific at all and people are always skeptical about someone new in this field. We thought about starting at the same price point and when we get overloaded with customers raising it. We also thought of starting at a higher price point and another option is to have the higher price point and offer a discount because the company is new. We would then match the current price of our competitors but still state that we are more valuable than them. Any suggestions on the price point?
metrokatz (11 months ago)
awesome. thanks tim :)
metrokatz (1 year ago)
thank you!
Neil Patel (1 year ago)
Test a bunch of different options. Same price point, lower, higher, FREE with upsell, there are tons of options. Funnel different groups of potential users into different funnels with these different price points to see what works the best.
Alfran Khan (1 year ago)
Hey Neil, thanks for providing great content I am currently working on a product which will hold our phone and can be placed around the user's neck (handsfree). The product's weight is 130grams and has a neoprene foam pipe near the neck area which will distribute the weight perfectly so user does not feel any weight at all, even with mobile phone on it and the best part of the product is it was completely foldable . Right now I don't have any photos right now but I love to share with you when product is available from side
Neil Patel (1 year ago)
Thanks for sharing and best of luck :)
Gabriel Shaoolian (1 year ago)
So true...you would think business owners would know to a/b test prices but most (including yours truly) don’t see the obvious! Great tip! Thanks Neil!
Neil Patel (1 year ago)
You're welcome, Gabriel!!
S Kaushik (1 year ago)
Nice. Great video. Btw..Any video on how to increase open rates? How to land ur mail in primary inbox?
Neil Patel (1 year ago)
Better subject lines help. Better content helps because that leads to better CTRs. Just try to improve the emails overall.
Just finished up my SEO course. I will be sure to use this advice :)
Neil Patel (1 year ago)
Nice!!
James Humphries (1 year ago)
Hey Neil love the value! We offer custom made fitness clothing so our products are made nothing like anyone else’s. Our premium long sleeve tee is £28 (about $37 dollars) which is also about the same as other companies in our field. Where do you suggest I go from here and how can we go about giving more value at no extra cost to our customers. - thanks.
Neil Patel (1 year ago)
Test different price points through different landing pages. A/B testing can show you which price point will give you the most conversions
BVM INDIA (1 year ago)
Nice Video Sir, I have a Question, can I add bulk keywords at the same time on my single website's Page ?
BVM INDIA (1 year ago)
Thank You, Sir and If you Ever Visit India Let us Know :) We love You so much.
Neil Patel (1 year ago)
Don't
Darlos Canger (1 year ago)
Great video but please correct the first word of your title...
Neil Patel (1 year ago)
Lol. It was confusing having the "You're" and "Your" in the same sentence. Updated it :)
Darlos Canger (1 year ago)
Wait, now it's wrong in the other direction... It should be "You're pricing your product wrong"...
Darlos Canger (1 year ago)
No problem. Love your stuff! It's been really helpful.
Neil Patel (1 year ago)
Wow! Good catch. Can't believe that got through lol. Changed. Thanks!!
N P (1 year ago)
Plz make video in detail about how to earn from blogging.
Neil Patel (1 year ago)
Thanks for your suggestion!
N P (1 year ago)
Nice information sir.
Neil Patel (1 year ago)
Thanks!
Eli Ely (1 year ago)
Very Informative video again! How to reach you for business inquiry? The proposal is timely sensitive as of FIFA
Eli Ely (1 year ago)
Thank you for prompt reply. Please send me linkedIn Id . Thank you
Neil Patel (1 year ago)
You can message me on LinkedIn
BEST Funny Moments (1 year ago)
I'm done. Unsub.
Jon Vongoh (1 year ago)
Oh, I get you ... BEST UnFunny Moments
Jonathan Broughton (1 year ago)
Neil with the clapback lol
Neil Patel (1 year ago)
Sorry that all of the free information I make available each day isn't good enough for ya ;)
Dan Tetreault (1 year ago)
BEST Funny Moments , curious Mate, why are you unsubscribing?
Steve's Mind (1 year ago)
Understanding your product's optimal price is extremely important.
Neil Patel (1 year ago)
Absolutely!
Rohit Sharma (1 year ago)
I sell iphone x case but not getting any impression nor click nor sale on google adword
Rohit Sharma (1 year ago)
Samar's Gadgets World ao what should i sell please tell me any niche
Samar's Gadgets World (1 year ago)
Rohit Sharma stop selling then
Rohit Sharma (1 year ago)
Roberto Renteria that's type of answer i want thank you
Roberto Renteria (1 year ago)
Get into a niche, sell starwars IPhone cases or something not copyrighted, like the world cup, give it a twist and put it in front of soccer lovers and you are good, and if you do not want to deal with fifa go for fan art or memes lol for all Colombians about the referee that gave them a hard time make something funny and Colombians will buy if you get it in front of them, there is a world of things you can go after, as long as it relevant and unique, best of luck
Neil Patel (1 year ago)
It's less than 95% but it is still a lot of people that don't click ads. Change your ads, improve your copy, images, titles, etc
punit bayad (1 year ago)
People say solve the problem but what about service businesses? Services like SEO and social media marketing solve one problem i.e. marketing. So we just need to make them aware what we do differently or... what we should do?
Neil Patel (1 year ago)
Case studies, focus on specific aspects of marketing and *not* 'everything' -- focus on what you can do the best
INSIDE FOOTBALL (1 year ago)
How can I get targeted lead for my service?
Neil Patel (1 year ago)
There are a lot of ways. Bottom of the funnel content, PPC, on-page SEO....
Architude (1 year ago)
NOT SOLD. What you explained is nothing more than having a business plan. First disappointing video you've done.
Cogent Doge (11 months ago)
Snatch the movie, not the TV show
Varun Kamal (1 year ago)
Primal Herb Entitled people will never appreciate how ever many bones they re thrown... When they re hungry, they ll turn and bite like snakes :D
Camille Herrera (1 year ago)
Neil Preach! I appreciate people like you and Anik that fearlessly drop value. I have a degree an 20+ years in marketing experience and folks would be surprised how many people don't understand pricing. While price represents a segment within a portion of a business plan, some person inexperienced in this area will treasure this nugget that you shared. Let's not get lost in the dipping sauce!
Architude (1 year ago)
Primal Herb, Everyone's entitled to their own, and yes that also includes you, even if your insights 'are' from television shows. Good luck with that.
Primal Herb (1 year ago)
Architude there's a great line from that movie "Snatch" : If I throw a dog a bone, I don't want to know if it tastes good or not. And if you ever interrupt me whilst I'm walking, I'll cut your f***ing jacobs off.
Hrishikesh Pawar (1 year ago)
just at the Right time!
Neil Patel (1 year ago)
Awesome!
ATIF S (1 year ago)
Awesome this is what i was looking for didnt know how to optimize the price now i got the tip n tools to do that thanks neil for this
ATIF S (1 year ago)
Neil Patel can i work with you?
Neil Patel (1 year ago)
You're very welcome!
Let's Puripie (1 year ago)
U deserve million subs...
Neil Patel (1 year ago)
I'll get there ;)
Let's Puripie (1 year ago)
great content..
Neil Patel (1 year ago)
Thanks!
Matt Rinkerman (1 year ago)
I have seen a Price War destroy several industries. But thats the evolution!
Matt Rinkerman (1 year ago)
I am exploring an option to use a price war in the wine business to build a digital wine business.
Neil Patel (1 year ago)
Indeed it is!
Manav Singh (1 year ago)
How to price agency services Neil? I'm just starting so I have no competition, and agencies don't reveal their prices on their website.
Neil Patel (1 year ago)
You do have competition --- other agencies. You can call them and pretend you are interested in their services and get proposals.
Ajay Dahiya (1 year ago)
Excellent video as usual.
Neil Patel (1 year ago)
Thanks, Ajay!
Charu Sharma (1 year ago)
Please create a video on price war
Neil Patel (1 year ago)
Thanks for the suggestion!

Would you like to comment?

Join YouTube for a free account, or sign in if you are already a member.