Validating willingness to pay for your product

If you try to do a value test without giving the user or customer the opportunity to learn how to use the product, then the value test becomes more like a focus group where people talk hypothetically about your product,

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

We want to understand the perceived value that the innovation holds for the customer. How much is the customer willing to pay for that value? What would the demand be? Seen in this light, price is both an indication of what customers value and a measure of how much they are willing to pay for that value.

demonstrated proof in the form of customer engagement and contracts that companies are in fact willing to pay money for the product you have built.

Essentially, it is a method of assessing a person’s preference for a good or service at different prices.

But, even more important, after a usability test the user knows what your product is all about and how it's meant to be used. Only then can we have a useful conversation with the user about value (or lack thereof).