My go-to pricing research method for learning how much buyers are willing to pay is Van Westendorp’s Price Sensitivity Meter. (There is a plethora of information on Wikipedia if you want to know more.) However, it only applies when doing a pricing research project.
But wouldn’t it be great to do some pricing research every time you interact with your market? There is one question you desperately want to ask, “how much would you pay for this?” But you can’t.
People won’t answer that question honestly. Most will lowball the answer, thinking you might be trying to get them to commit right now. Or maybe they think they can influence what price you will eventually charge. Regardless, they are focused on themselves and how to get a better deal from you.
The questions in Van Westendorp’s method are effective because they use misdirection. Instead of asking how much you would pay, they ask other questions. At what price is it too expensive to consider? At what price is it expensive but you still might consider it? Etc. But these questions aren’t conversational. They don’t feel natural in most interactions.
Here’s my favorite question to ask when talking with my market about products or services. “How much do you think other people like you would pay for this?”
The respondent doesn’t know what other people think, so they can only share what they think. But the misdirection keeps them from trying to manipulate you, at least a little. This is a quick and easy way to get some, albeit imperfect, information on willingness to pay.
I recommend you use this question towards the end of most of your market conversations. I promise it will give you some interesting insights. Let me know how it goes.
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Now, go make an impact!Tags: pricing, pricing skills, pricing strategy, willingness to pay