Your business is preparing to launch a brand new product into the market. The product has been built and refined through many iterations, and now you are ready to ship it to customers. Only one question remains: what price should you charge for your product?
In this article, we analyze Van Westendorp’s Price Sensitivity Model, a data-driven pricing model that uses survey data to determine customers’ willingness to pay for your product. This article details how the Van Westendorp model works, why it addresses shortcomings in current pricing conventions that many businesses use, and what its limitations are.