Gabor-GrangerSpecialist Agent Hub · Pricing

Which tested price maximises revenue?

Purchase intent at each price you test becomes a demand curve, revenue per respondent and the best price on your shortlist.

01 / Your price ladder

One question for every price you test.

Map the purchase questions; the price each one asks about is read from its wording for you to check.

Then say what counts as a purchase — top-2-box, top-3-box or your own codes on an intent scale, or “yes” on a yes/no question.

Before it runs
  1. Variables — two or more price questions on one answer scale, at distinct prices.
  2. Prices & purchase rule — the price for each question and the answers that count as buying. Where respondents were shown only some prices, choose whether their answers extend along the ladder.
  3. Missing data, filters and a subgroup — each group needs at least 30 usable respondents.
Read the full guide

02 / Demand

Who would buy, at each price.

Demand is the share who would buy at each tested price, counted on everyone who answered it.

Respondents who refuse a lower price but accept a higher one are set aside and counted. Nothing is smoothed: if demand rises with price, you get a warning, not a quietly corrected curve.

03 / Revenue

A higher price is not always better.

Revenue per respondent is price times the share who buy; the best tested price is the one where it peaks.

The recommendation is always a price you tested. Elasticity is reported between each pair of neighbouring prices, with a verdict at the optimum — elastic, inelastic or unit-elastic.

04 / The answer

Get the price, in a deck.

The PowerPoint shows the demand and revenue curves, the optimal price, and what it means.

Sample and methodology · Demand and revenue, as an editable chart · Gabor-Granger results · Key insights · Conclusion — or, with a subgroup, the same for every group.

The deliverables

What you take away.

The deck

The curves, the optimal price and the key insights.

The report

Every tested price with its base, demand, revenue and elasticity.

The chart data

Demand and revenue at every price, as Excel — one per subgroup.

The chart

Demand, revenue and the optimal price, ready for your slides.

Use it when you hear

  • “We have a shortlist of prices and need to pick one.”
  • “What price would actually maximise revenue?”
  • “We need to understand the demand curve, not just an acceptable range.”
  • “How elastic is demand at the prices we’re considering?”
  • “Marketing wants the revenue-optimal SKU price for the launch.”

Before you start

Bring a survey file.

File
SPSS .sav
Questions
One purchase question per price · 2 or more
Answers
Yes/no or an intent scale
Sample
30+ respondents

Want an acceptable range rather than a pick from a shortlist? That’s Van Westendorp — Van Westendorp

Give the pricing debate a clear answer.

A demand curve, revenue per respondent and the best tested price — in a deck you can take into the pricing meeting.