willingness-to-pay-research

Set prices from what customers say or show they will pay: design the willingness-to-pay research, turn responses into demand at each price, and find the revenue- or profit-maximising price for each product, plan, seat or ticket type. Always use this skill when someone has survey responses, or a column of the most each respondent would pay, and wants a demand curve, price-response table or the best price. Also use it for how to find out what customers would pay before a launch; how to write pricing survey questions (direct willingness to pay, Gabor-Granger, Van Westendorp, conjoint); how to price several ticket, seat or plan types with limited capacity; how to correct for people overstating what they will pay; or when to trust a survey over sales data. Not for estimating elasticity from historical sales, and not for designing tier fences, bundles or segment discounts.