Don't Make This Pricing Mistake: How to Price Your Products & Services
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- Опубліковано 5 вер 2012
- This is the dumb pricing mistake entrepreneurs make. Now I'll show you how to fix it.
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There's a dumb pricing mistake people make when they price their products and services...
...and it leaves a TREMENDOUS amount of money on the table.
(The weird part? This applies to all types of products. Maybe you're selling a piece of furniture... or you'er selling multiple crafts at a craft show... or maybe you're a freelance photographer or web designer...)
What is the mistake?
Watch this video and I'll explain everything.
The best part? Once you know the mistake, it's easy to fix it.
Don't take my word on it. Watch the video. See for yourself.
This takes advantage of proven psychological pricing strategies. It works for physical products - like crafts, handmade furniture - and for freelance services - like photography, web design, consulting.
Oh, and if you liked this video, HIT SUBSCRIBE!
bit.ly/WqPFyy
Hey, Derek Halpern here. Hope you liked this video about pricing strategy for physical products and services. If you want to learn more, do me a favor? SUBSCRIBE TO MY CHANNEL. Thank you! bit.ly/WqPFyy
I was literally just starting to zone out when he snapped his fingers and said "pay attention". LMAO. Nice timing dude.
The "pay attention" worked.
It did!
Yes it did!
I was giving him a thumbs down when he said that. But by the end his advice was so good I reversed my decision.
Roberto Rios Orozco same !!! I was actually looking away hahaba
I was freaked out b/c I was distracted by the list of other videos and was adding it to watch later and he said that. I really thought he could see my eyes shift away or something. Hahaha
Best part is at 00:46 when Derek calls you out for getting distracted
he got me at the perfect time
Me too!
This is great advice, and I've implemented this as Bronze, Platinum and Diamond Level strategies. Few want "Bronze" Level, as that implies 3rd place. "Platinum" is great, but what can beat a Diamond? It cuts through everything! People like to BUY, but not to BE SOLD, and offering options is a great way to leverage that solution.
HOLY SHIT - HOW DID THAT 'PAY ATTENTION' PART WORK?? I TURNED AROUND FOR 2 SECONDS TO FEED MY DOG AND I THOUGHT THIS DUDE STARTED TALKING TO ME.
Glad to hear it Gabe. And thanks for taking the time to watch.
It really freaked me out because at that exact moment, i was looking below the video to "like" it and then Derek called me out. It was unreal lol
hey +DerekHalpern , first time I've watched this video. However, based on previous advice just like yours, I actually made separate packages for my most expensive service - Web Design. Here's what happened... A client of mine referred me to a prospect, I had a phone consultation with him before giving price. I made 3 packages and then emailed him the quote.
Although, he's a small business owner as well, he chose the most expensive Web Design Package I currently have.
I closed the deal, and I'm working on it.
Your advice is excellent in this video, plus you gave me extra details on the psychology behind the pricing of my packages.
All I have to say is, Thanks, and this technique works.
At first, didn't think I was going to like this. Brilliant video mate love it
Pricing is one of the toughest things for small business owners to do. It's the most popular section of my book and I'm sure this will be one of your most popular videos. Great advice you provided in an engaging way!
Xzx say
That “hey pay attention” caught. I can’t lie...😅
It sparked quite the discussion actually. There are a lot of folks in the group that are into offline marketing and pricing is always a good discussion to get into.
Derek. Loving your content and this tip is GOLD. Creating my first course now and I'm going to follow your advice here. Thanks!
You know what, I hate subscribing to UA-cam videos. I have enough already. But damn man, you're a great source of free information. Thank you, i went through almost all of your videos before noticing that i might as well subscribe. Keep it up!
I liked your delivery and to-the-point style of speech. Not at all boring like other people on YT. Try to maintain the same style. Others just drag and want to stretch the video which only helped with my insomnia not in marketing. Gave a like and subscribed.
I love this! I was just putting together prices for new products when I came across this vid. Great insights that I'm definitely going to implement immediately. Thanks.
Great tips Derek. Thank you.
Shared this around as its really good! Wonderful content and great work buddy
Excellent video. So good I was compelled to share this with my Facebook group. Top notch content, solid call to action, and just plain good. I'm kinda geeking out here.
Uber impressed.
Eye-opening. Thanks Derek.
Fantastic video Derek. I just recently listened to your interview with Pat Flynn and loved the content. This was equally as good - great tips. Thanks man.
Love the video - I've sent it on to some people. It's really well delivered, and easy to understand.
Awesome video Derek. Thanks man.
This is so true, I use three price points in sales presentations all the time. I use the middle option for what I want people to choose and they almost always take it!
Thank you so much! Absolutely mind opening! God bless you
Thanks Derek, i just subscribed. This information will be really helpful when i create my iOS starter kit products in the future!
Excellent strategy. I'm loving this video already.
Love the video Derek. Thank you. You are so right. Love it. Love you too. x
This kid is definitely in sales.
This is great info yet again! Many thanks
Thank you for this video!
thanks Derek, this was extremely helpful and eye-opening
WOW WOW WOW this video couldn't come at a better timing. I think you just saved our business :) Thanks so much
What business do you run?
Your videos rock! Great job. How are you moving all the clips around? Thanks for the great content
0:47 I thought he came alive lol because When I went to look at the comments he said that
same here xD
Big$MoneyBoss Same😭😂😂
Great video - you definitely have a lot of value to offer. Thanks man.
00:46 - EPIC moment!
Brilliant, fun and VERY useful. Many many many thanks Derek, I'll go my merry way and create 3 packages TODAY!!!
ACTIONABLE, COMPREHENSIVE & VALUABLE free info. Thumbs up!
Hi Derek! Thank you, thank you, thank you!!! Bam! Loving the first ever episode of Social Triggers TV. Let me tell you how much I value this pricing strategy. I must say, I am one of the guilty ones who just randomly pull a price out of hat (embarrassed now). I am actually creating a product right now as we speak and am going to implement this strategy. Thanks again Derek - appreciate this!
Good info! Thanks!
Very nicely done.. content wise ;) lol!! very dynamic. I like that!
Love this video! Cheeky as usual. I like this color and style of shirt and your hair is great too, boyish, bookish.
Great info. Just Subbed and will share the video. Thanks.
Hi, nice video. Not only hte content, but I also love the presentation.
Can you, please, write down what the study is that you are referring to in the video. I can't quite get it right by ear
it really helped me. I just started my business .... N ur video is great wisdom .... ! thank u
Great Job Derek! So much fan when you were "pretending" being distracted :)
Interesting work Derek. I've seen your work from a wordpress theme I think it was. Wow... old video. Anyway, hard to know how to create those packages and what to include. Something to think about.
Great Sir......thanks
Excellent advice thank you
Great video, fabulous personality and you honestly make me want to watch all your videos. I could not find where to sign up for you Newsletter? I would like to.
I just met you yesterday and I love you Derek! You are so funny!
I do the same thing.
Tankless water heater with filters for 6k,
Tankless water heater with out,
50 gallon water heater,
40 gallon. More often than not, people go middle to upper middle.
I looked for this after watching you on creativeLIVE. Subscribed.
Awesome!!
Great, thank you :)
Great insights!
Good video, Good Tips. keep it up.
Great job on the first video Derek. I am currently struggling with how to price an ebook that I have written for small business owners on doing PPC marketing. It took me a lot of time and effort and it is pretty good I think - but to get the most revenue - what price do i go for? There are other PPC ebooks in the market for $29 and others for $499, probably with not a lot of difference to them. I am leaning towards $47 as the price and then also planning to give away a free chapter as a taster.
wouldn't have paid attention if you didn't scare me with *hey pay attention* thanks Deryk. the 3 package idea is amazing
This immediately made me realise that I should dump my sales strategy that I was going to use for selling my pondsludge vacuum machines (yes, I know, they have a cool name to avoid this 'word'). Thanks
I have actually thought about that - I believe that most small businesses waste between 20% and 50% of their PPC budget and on average have a budget of between $1000 and $5000 per month. Through following the steps in the book they can drastically reduce the errors and become perhaps 30-40% more efficient, saving them $300-$1500 per month. But there is still a problem with perception of value with the buyer. Or perhaps it is my perception of what they buyer is willing to pay....
I just adjusted my price hoping it will sell.
I used to put just 3PCs for 10SR.
Now I added two more offers that goes up to 20PCs for 30SR..
I really hope it works! I am a recently-graduated student who wishes to be a great businessman, so if any advice please tell me! ^^
Thanks
Yes!!!!! Great idea!!!!!
This is GOLD
Quick question, how do you figure out your highest price? Is there some kind of % that should be applied or you just have to kind of figure it out?
In this example it was:
10
15 -> + 50%
40 -> + 266%
Any input would be great. Thanks!!
I am just starting out and struggling with my pricing this seems to be a great idea to me. I will be implementing this idea on my next bid today . I will report back if it works hhah
This only touches on the topic too. I've got more planned :-)
i like the snap to attention, you got my like 👍🏽
wtf... when you said "hey! pay attension" I was thinking of something else and your statement got me back.. haha..
one of the best videos I have watched online #shared
Love your content...a few conceited statements here and there...but the point is, you have great content!
At 0:49 I was looking at my phone. Damn man.
Thanks for the great video. I’m in the business of selling dog food, and trying to sell three options by weight (selling 2lbs, 1lb, half a pound). Can this work for my food?
Very good job
How do i price: I understand the client, understand if they actually know what they want. I have a price for time. But i understand exactly how much time is needed - prep, research , staff costs, the quality of the product the client needs, thinking time, invoicing time.
Yeah, I actually got distracted right before it. Timing couldn't be better, I burst into laughter hahah
I do freelance graphic design. After watching I sent a client 3 packages- $1000, $1500 & $3000. I got the job to do work @ $2000. Thing is I don't if the customer would have still agreed if I did not send those package options. If just quoted flat $2000 how much more likely would they have agreed. Anyway I played it safe and used your info.
How come, you say you offered A B C options but the client took D. How did he end up with a $2000 option.
Glad you liked it! What did your Facebook group think about it?
This is the opposite with food and drinks right? Don't stores price their smaller sized beverages cheaper to make the bigger sizes look more worth it?
But the price you pay for the smaller bottles ends up being more percentage wise compared to the big bottle. So even if you don't need the big one, you'll get it 'cause it has a better value and they make more money off of you since the product is much cheaper to make.
I wish I could make my eyebrows do that Derek ;-)
Ty for your tips bro.
I will succeed and buy you a coffee for that.
Thank you.
This is like the oldest trick in the book. I hate how so much of business is simply manipulation. The last thing businesses want are rational costumers who see through these games.
I love the ideas that you shared in this video, but I'm a little stuck as to how to apply this to a website where I sell handmade jewelry for $10-$30 a piece. Do I simply make sure that visitors to my site know that there are similar items available at a different price?
My opinion:
You could create higher end jewellery, either by increasing complication, the material costs (using higher-end materials), and tossing in a higher mark up. Just having a few examples of that work around should not only draw in some more money whenever they do sell, but have the effect mentioned in this video on your regular jewellery.
+Moana-Marie Nazareno Tier pricing can definitely assist. If you need any assistance more than happy to help. you can get in touch directly on carlton.seymour@gmail.com
how do you insert a video intro in middle of video like your video above?
example: you start talking, then video intro, then the rest of the video...
Thx, Rick
Great video. You're like Gary V meets Ryan Lee.
So spooky.. the exact moment 00:46 i flicked tabs in Firefox Derek says "Hey, pay attention!"
:O
How can be that implied for startups with one single tangible product ? please replay
What do you think of this pricing-related theory?
Price of goods in the USA compared to the EU:
The Gini coefficient gives a measure of the income distribution of a nation's residents.
Generally, Europe has more even wealth distribution than the USA. (Search for map.) That probably influences the prices of goods because less people in the USA would have the means to buy expensive goods and the maximum profit on an item would be at a lower price point.
Chrysler did the same thing with the Durango.
practice makes perfect
Take A/b testing beyond your webpage and into your business model. This video provides invoking thoughts that should be shared among entrepreneurs.
yeah i was turning to watch tv and got shocked haha
Him:Hey pay attention
Me:woahh
Haha, this is what I do for Ebay. If I see a crappy priced item that I didn't post I will post my item at a less of a crappy price but still crappy in my opinion.
How do you do this with clothing?
Well, think about lines of clothing...
Some people have higher end brands. Some people have lower end brands. One could be "made to measure." One could be "off the rack."
We should also mention the potential downside that some customers will see the highest price and feel you're out of their range. Instead of getting your best package, they have to settle for your supposedly mediocre work. Best strategy may be to pump your highest package full of unnecessary gimmicks, bells, and whistles. That way they don't conclude that you're merely overpriced.
This is true and it is an extremely well and long time known approach. For example, all big brands of food and rink products utilize it by introducing products on the market that serve only this very reason to act as a vehicle to focus customers on another product. However, your example is very specific and therefore will hardly be applicable to many people because not everyone can offer work in "packages".
Correct some products/services just cant be fit into packages. Its not for everyone.
I feel like I was on an episode of the Soprano's & I was about to get whacked fo not payin attenshion ova eya!
Hi Derek, great video. Please be my mentor... haha!