Validating willingness to pay for your product
kashif-hameed.medium.com
Validating willingness to pay for your product
A Better Approach: Run a Demand Test
We can simulate the buying experience and see if it resonates with people. We can mock up our pricing page including our different packages, what is included with each package, how the pricing will work (e.g. monthly, annual, subscriptions, one-time payments, etc.) and the price for each package. The goal is to ... See more
We can simulate the buying experience and see if it resonates with people. We can mock up our pricing page including our different packages, what is included with each package, how the pricing will work (e.g. monthly, annual, subscriptions, one-time payments, etc.) and the price for each package. The goal is to ... See more
Ask Teresa: How Can You Test a Customer’s Willingness to Pay? - Product Talk
One technique I like for gauging value is to see if the user would be willing to pay for it, even if you have no intention of charging them for it. We're looking for the user to pull out his or her credit card right then and there and ask to buy the product
Marty Cagan • INSPIRED: How to Create Tech Products Customers Love (Silicon Valley Product Group)
Value pricing - Determine the Willingness to pay. How much money users are willing to pay for the product or service. Competitive pricing - Explore the pricing from competition for a similar product or service. Then decide the pricing based on your product’s positioning. Experimental pricing - Experiment with different price points and correl
... See moreArkapravo Chakraborty • Go-To-Market - How to craft a winning marketing plan
4 types of Pricing studies
Study: Van Westendorp Method with steps:
Ask price considered "too low"
Ask price considered a "bargain"
Ask price considered "expensive"
Ask price considered "too expensive" Drawbacks: Hypothetical bias, not frequently used by companies or academics, open-ended questions can lead to inaccurate results When to use: Frequently
Understanding if customers are willing to pay for your invention, before you commit too many resources to building and launching it, will dramatically increase your likelihood of success. By designing your product around a price, your innovations will stand a far greater chance of surviving and thriving. Figuring how much customers will pay for you
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