Changing consumer spending habits have created a new challenge for companies: How can you determine the right price for your products in a volatile marketplace? How can you set prices that are accessible to your target audiences, while not leaving money on the table?
Product prices can be determined in a variety of ways; some companies use a competitor’s price as a starting point, others add a fixed mark up to the cost of goods. But, the most effective pricing efforts are more than a passive element, and instead treat pricing as a strategic lever that can maximize profitability.
Determining the right price based on your target market's willingness to pay will help you hit the sweet spot between sales volume and revenue. A prime example is how airlines pivot flight pricing based on customer demand, seasonality, and flight destinations—customers are willing to pay more around holidays, and to fly to certain cities.
That’s why using market research and feedback to determine the best price for your products is essential to navigating an unpredictable market landscape.
Price Optimization: Find the right price
Price Optimization helps businesses understand how much their target audiences are willing to pay for their products before product launches. With the Van Westendorp methodology, this solution offers a research-backed approach that identifies your product’s acceptable price range from the audiences you want to hear from most.
Easy to set up and results back in hours
With constantly changing consumer sentiment, even the slightest research delays can lead to outdated insights. Price Optimization is designed to combat this with guided project set up, where a pre-programmed introduction and questions populate as soon as you access our solution. On top of that, the study can be sent immediately without any adjustments, or further customized to your needs.
Our expert, methodology-backed guidance provides you with best practices and context at every step of your project setup, so that you can confidently run this study on your own. And with self-service checkout, you can launch your project at any time. For more personalized support or when your bandwidth is low, we even have a team of dedicated market research experts to help you program, launch, and analyze your study.
Van Westendorp methodology is baked into Price Optimization, which establishes not only an optimal price point, but also a range of acceptable prices that your target market can indicate. By pinpointing the prices that would be too expensive, too cheap, a good deal, and high end, Price Optimization offers a number of actionable data points, and leaves the ultimate decision up to you.
Quick, easy, and cost-effective, this solution can deliver same day results with easy set up and immediate fielding—you can see your results in real time as your responses come in. In fact, most of our projects complete within hours, giving you access to clear data for any decision you need to make.
This solution is made for everyone—it democratizes the pricing research process, no matter how much experience you have with pricing strategy. Innovators and researchers at any level of expertise can use our intuitive solution to gauge the ideal price for their audience, at a fraction of the time and costs as hiring research agencies would take.
High quality feedback from the people you want to reach
In addition to collecting quick, quality insights, it’s critical that the feedback you capture comes from the right target audiences. Price Optimization is powered by our integrated global panel, which allows you to reach 175M people in over 130 countries, including both B2B and B2C audiences. You can also take advantage of our 200+ targeting options to select audiences that are most relevant to you, such as respondents who’ve visited a supermarket in the last 6 months, or smartphone users.
Your data is automatically cleaned and comes with powerful, presentation-ready visualizations. Not only is the quality of your insights guaranteed, but you’ll also be able to discern exactly which price points appeal most to your target audience with the Price Sensitivity Meter. Additional in-product guidance offers you tips on analyzing and sharing insights, so that you get the most out of your data.
While Price Optimization identifies the prices that your target buyers are willing to pay, price is just one piece of the puzzle in driving demand. So many different elements of a product can influence its success, from identifying the right customers, to meeting their needs, to ensuring the messaging appeals to your target buyers. That’s why it’s necessary to conduct holistic research to accompany pricing studies, instead of solely relying on pricing research to determine the optimal price.
Dive into market trends and macro-context into what causes certain pricing preferences with a brand tracker. Surface meaningful insights on consumer perceptions of your products, and why they may think your products are worth a certain price with usage and attitudes studies. And develop the products that have the greatest chance of success in the market with concept testing and product optimization.
Price Optimization even has benefits beyond determining your product’s best price. Here's a quote from one of our customers:
We were hoping to find the ideal price point for our lowest B2C SaaS subscription tier. We not only validated a range for pricing our subscription, but discovered new customer segments with higher willingness to pay!Devin Owen, CEO of Savviest
Understanding how your ideal customers will respond to your prices can determine whether your product will be a success or a flop, especially with shifting consumer spending habits. The right prices are critical in reaching different target markets and maximizing your revenue across the board. When it comes to your business, we hope that Price Optimization will help you stay ahead of the markets and determine the best price for your offerings. Learn more about Price Optimization, or talk to our team about your next project.
Get started with Price Optimization
Find out how to determine the best price for your products.