Van WestendorpSpecialist Agent Hub · Pricing

What price range will your market accept?

Four price questions become an acceptable range, an optimal price and an indifference point — for the whole market or each group in it.

01 / Four questions

Four questions about price.

Map the four price-perception questions in your file: too cheap, cheap, expensive and too expensive.

Each must hold numbers, in one currency. Add a subgroup — region, segment, channel or plan tier — and the whole analysis runs again for each group.

Before it runs
  1. Variables — the four roles, or a saved mapping from an earlier run.
  2. Missing data and filters — how gaps are handled and who is included.
  3. Subgroup — optional; each group needs at least 30 usable respondents, and smaller ones are listed as excluded.
Read the full guide

02 / Answers that add up

Only answers that hold together.

A respondent counts only if their four prices rise in order — too cheap below cheap, below expensive, below too expensive.

The rest are set aside before anything is drawn, and the run needs at least 30 respondents left. Below that it stops and says how many it found, rather than drawing curves from too few.

03 / The range

Where the curves cross is your range.

Four cumulative curves cross at four price points — the floor, the ceiling, and two points inside.

Range low (PMC) and range high (PME) bound the acceptable range. The optimal price (OPP) is where the fewest reject it on price at either extreme; the indifference point (IPP) is where as many call it cheap as expensive.

How the crossings are found

Crossings are interpolated between the prices respondents gave, so a price point can fall between them. If two curves never cross, that point is reported as missing rather than guessed. The range’s width is reported too, in money and as a share of its midpoint.

04 / The answer

Get the range, in a deck.

The PowerPoint shows the price spectrum, the four price points and what they mean.

Sample and methodology · Price sensitivity curves, as an editable chart · Price spectrum analysis · Key insights · Conclusion — or, with a subgroup, the same for every group.

The deliverables

What you take away.

The deck

The curves, the price spectrum and the key insights.

The report

The price points, the perceptions behind them and the method.

The chart data

Every curve at every price, as Excel — one per subgroup.

The chart

The four curves and their crossings, ready for your slides.

Use it when you hear

  • “We’re guessing on price. Pricing is a gut call right now.”
  • “We need a defensible price for the launch deck.”
  • “We want a price range, not just one number.”
  • “Different markets and segments seem to react differently to price.”
  • “Our finance team wants a sanity-check on the price our PM picked.”

Before you start

Bring a survey file.

File
SPSS .sav
Questions
Too cheap · cheap · expensive · too expensive
Sample
30+ with prices in order
Optional
A subgroup variable

Testing a shortlist of set prices instead? That’s Gabor-Granger — Gabor-Granger

Give them a range, not a guess.

Four price questions, an acceptable range and an optimal price — in a deck you can take into the pricing meeting.