How to conduct a Westendorp Price Sensitivity Meter

Working on new #pricing? Here’s a research methodology you should know.

It’s called the Van Westendorp Price Sensitivity Meter.

I dropped a template in the comments that’ll help you do it.

A few weeks ago, Rowan Noronha and I hosted a podcast episode on the ever-terrifying topic of pricing.

Two pricing experts, Mark Stiving, Ph.D. and Kyle Poyar shared their best practices around pricing, how to approach pricing research, and what NOT to do when setting your price.

The link to the episode is in the comments. 👇 Make sure you check it out.

During the episode, Kyle talks about the Van Westendorp Price Sensitivity Meter as one of his favorite methods for getting pricing feedback from customers and prospects.

Instead of simply asking customers what they would be willing to pay for your product (let’s be honest we’ve all done this) it asks them a series of four questions to determine an acceptable price range.

Here are the four questions:

  • At what price would you consider this product to be a great deal?
  • At what price would you consider the product so cheap that you would feel the quality couldn’t be very good?
  • At what price would you consider the product starting to get expensive, not enough to rule it out, but you would have to justify buying it?
  • At what price would you consider the product to be so expensive that you would not consider buying it?

You then plot your survey results on a line graph to find your Optimum Price Point. That’s where it gets tricky. The graph isn’t the easiest thing to create or interpret, which is why I created the video above and a template to help walk you through it.

Grab the template in the comments and watch the podcast episode for a lot more pricing best practices.

#productmarketing #packaging #strategy