What should my Price be?
You’ve got a great product.
Now… what do you charge for it?
Quick and simple
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Download the table and the questionnaire.
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Send the questionnaire (editable to your needs) to potential customers.
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Put the results back in the table (see “Example” tab)
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Email us the results and we’ll email you back the analysis for Free
More details:
The goal:
Set your Go To Market price or test before a price change.
The risk:
Price too low and you lose revenue, signal low value, and make future price increases painful.
Price too high and you lose market share, stall adoption, and look greedy.
The challenge:
Getting the price right without a clear market signal is hard.
The solution:
Extract willingness to pay from PSM analysis.
This proven method, refined over decades and used across industries, gives you a reliable
(statistically significant) price range to fit your go-to-market strategy, whether you're chasing Market Share, Margin, or Positioning.
How:
Van Westendorp PSM (Price Sensitivity Meter) is the work-horse of price estimation by pricing
professionals when we don’t have sales data to analyse. (if you have sales data, click here)
The first step is understanding that the market’s Willingness To Pay, is driven by customers’ Value Perception and Price Sensitivity.
Sounds fancy, but it's actually brilliantly simple:
We ask potential customer four simple questions:
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At what price is this too cheap to trust? (think $1 Sushi)
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At what price is this a good deal?
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At what point does it start to feel expensive, but you would still buy?
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(think expensive but GOOD Sushi).
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And when is it just flat-out too expensive?
We model the responses (by plotting cumulative frequencies, if you speak fluent geek).
The insight is in the intersection points between frequencies.
We end up with four Key Price Points:
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Undervalue Zone (Lower Bound): Below this, they start wondering what’s wrong with you.
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Whatever Price (Indifference Point): Feels fair. Least resistance. Best for market share but still commercially sustainable.
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Sweet Spot (Optimal Price): Best for monetisation and positioning.
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Overvalue Zone (Upper Bound): Above this, and they're out. No matter how great your
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product is.
What makes this great for B2B and B2C SaaS?
It quantifies how your market perceives value.
So you can align your Pricing and strategic Growth goals with customers’ expectations and
willingness to pay.
PSM is even more powerful when used with Segmentation, Freemium-to-Premium strategies, or Packaging methods.
PSM is fast, scalable, and reliable. Ideal for evolving products, tiered packaging, and monetisation decisions that need both speed and confidence.
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Download and customise the questionnaire.
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Send it to potential customers.
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Drop the results into the table and email it to us.
We’ll send back a free pricing analysis based on your data.
Three things to read:
Van Westendorp Price
Sensitivity Meter (PSM)
In Depth
Van Westendorp Price
Sensitivity Meter (PSM)
Variations to enhance.
Gabor-Granger
* Methodology,
* Comparison with Van West,
* Applications for Price Elasticity
and Willingness To Pay