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25 min read

Testing Price Sensitivity

Four questions that tell you if your price is too cheap, too expensive, or just right.

Van Westendorp is a survey method that helps you find the right price. Instead of asking "would you pay X?" — which gets bad answers — it asks four questions about where cheap and expensive start.

Why It Works

When you ask "would you pay X?", answers are usually 3x higher than what people actually buy. Van Westendorp skips that by asking where "too cheap" and "too expensive" start — not what they'd pay.

The Four Questions

Replace {product_name} with your product.

Too Expensive

"At what price would you consider {product_name} to be so expensive that you would not consider buying it?"

Too Cheap

"At what price would you consider {product_name} to be priced so low that you would feel the quality couldn't be very good?"

Expensive / High Side

"At what price would you consider {product_name} to be starting to get expensive, so that it is not out of the question, but you would have to give some thought to buying it?"

Cheap / Good Value

"At what price would you consider {product_name} to be a bargain — a great buy for the money?"

How to Use the Results

1. Get Responses

Run this as a survey with your target customers. Aim for at least 30 responses. More is better.

2. Plot the Curves

Make a chart with price on the X-axis and percentage of respondents on the Y-axis. Plot each question as a separate line.

3. Find the Sweet Spot

The best price is where "too cheap" and "too expensive" cross. That's where the fewest people reject your price.

4. Find the Range

The zone between those intersections is your safe range. Price anywhere in there.

Resources

Key Takeaway

Van Westendorp works because it asks about thresholds, not guesses. Use it with 30+ target customers. Combine with real pricing conversations for the full picture.

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