A Pricing Survey Template for Optimal Profits

October 16, 2017 - 3 minute read

Need a pricing survey template to help you optimise revenues and profit? We’ve got you covered.

Why is pricing important?

Getting the price right for your product can be the difference between failure and success.

Price your product too high and people won’t buy it, and you’ll lose market share to competitors.

Price your product too low and you're leaving money on the table! Not to mention that it can adversely affect consumer perceptions of your brand and harm profit margins to the point that you’re unable to invest sufficiently in the future.

In other words, pricing is a delicate balance that you have to get just right.

How do you find the optimal price for your product?

“You know you’re priced right when your customers complain—but buy anyway.” – John Harrison, Clockmaker

Nobody wants to pay more than they have to, so it’s hard to establish the right price simply by asking people, isn’t it?

Not necessarily.

Dutch economist Peter van Westendorp introduced a model, called the Pricing Sensitivity Meter, that’s been in wide use since 1976.

It works by asking four straightforward questions.

  • At what price would you consider the product to be so expensive that you would not consider buying it? (Too expensive)
  • At what price would you consider the product to be priced so low that you would feel the quality couldn’t be very good? (Too cheap)
  • At what price would you consider the product starting to get expensive, so that it is not out of the question, but you would have to give some thought tobuying it? (Expensive/High Side)
  • At what price would you consider the product to be a bargain—a great buy for the money? (Cheap/Good Value)PSM.jpg

Once you have this data, there’s a handy step-by-step guide (including a downloadable template) to help you interpret the results by 

plotting them onto a graph, which will then

show you where there is an ‘optimal price point’ (OPP).

 

Other pricing considerations

While turning van Westendorp’s Pricing Sensitivity Meter is a great start and will help form a basis for your pricing considerations, it’s important to note that pricing is a complex decision, and not one to be taken lightly.

In fact Wikipedia lists over 26 different pricing strategies that you might want to consider!

Therefore you should take it as one of several data points before making a final product pricing decision.

 

The Pricing Survey Template

To help you get started, we’ve create a tried-and-tested version of the Pricing Sensitivity Meter, ready and waiting to go. You could have it sent within 5 minutes.

All you need to do is login (or join) Attest, select the Pricing template, enter a couple of details specific to your product, select the audience you want to ask about pricing (we recommend a sample size of 1000), and hit ‘confirm.’

Pricing Survey Template.gif

You’ll have reliable pricing data back within a day or so.

If you're about to embark on a consumer intelligence project, get the ins and outs by reading our Complete Guide to Survey Creation.


Get Started Now

Related posts



Quotas: What They are and What They Mean for Your Surveys

 

Have you ever launched a survey, and wondered who might answer it? Clearly, not being sure how many responses you might get, or how representative of your audience they will be, is not a great way to conduct business-critical research.

Posted by Beth McGarrick on November 23, 2018


Miracle on Christmas High Streets: How Retailers Can Compete Against eCommerce this Winter

It’s no secret that Christmas is a very valuable time for retailers. With presents needed for family and friends; mouths needing to be fed copious amounts of food throughout December; and houses needing to be transformed into festive paradises, there’s a lot of stuff that needs buying in the run up to the holidays. And with all the good cheer that’s going around, and Christmas bonuses a mainstay of many jobs, people are freer than usual with their spending. 

Posted by Hannah Kate Kelly on November 13, 2018


Q4 New Feature Roundup: Answer Limits for Multiple Choice Questions, Improved Insight into Respondents' Actions and more

Here at Attest, our product, design and engineering teams have been busy at work over the second half of 2018. We’ve released a number of new features and feature improvements destined to make the lives of survey makers easier throughout the process, all the way from  creating the survey to analysing the results.

Posted by Beth McGarrick on November 08, 2018


The Battle for the Connected Home

Last year, Gartner forecast that by 2020, the world will be spending almost $3 trillion on connected devices. The battle to win the most significant share of this money, is already well under way. 

Posted by Hannah Kate Kelly on November 06, 2018