Van Westendorp`s Price Sensitivity Meter

If you ever dreamed about maximizing your profits through finding the perfect price, here is a nice trick - a valuable addition to price A/B testing.

Divide your users into 2 categories: prospects and customers.

Ask each group this magic sequence of questions:

1. At what price would you consider the product to be so expensive that you would not consider buying it? (Too expensive)

2. At what price would you consider the product to be priced so low that you would feel the quality couldn’t be very good? (Too cheap)

3. At what price would you consider the product starting to get expensive, so that it is not out of the question, but you would have to give some thought to buying it? (Expensive/High Side)

4. At what price would you consider the product to be a bargain—a great buy for the money? (Cheap/Good Value)

The first two questions are a psychological trick - they force respondents to anchor themselves to the highest acceptable price range. The last two questions help narrow the optimal price band. Graph the responses to determine your best price point.

Source: www.priceintelligently.com


Cheers,
Charlie Patel ;)



Your friend wants to get access to our invite-only community of growth hackers from companies like Uber, Google, Microsoft, TechStars, Disney, Adobe, Coca-Cola, Amazon, etc.? Here's your personal invitation link for him/her: http://e.growthhackingidea.com/?ref=2145324&a4=1&a5=9

---

Unsubscribe | GrowthHackingIdea / StartupGrowth.com | 1460 Broadway New York, NY 10036