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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.
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?
@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?
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 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
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.
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.
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.
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.
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
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.
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...
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.
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.😊👍
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 )
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...
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!!!!!!
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?
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?
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.
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
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.
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
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 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 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.
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