Test pricing through multiple methods to find the optimal price point. Key approaches: (1) Van Westendorp Price Sensitivity: ask 4 questions about too cheap, cheap, expensive, too expensive prices. (2) A/B testing: show different prices to different user segments. (3) Customer interviews: ask 'What would you pay?' and observe reactions. (4) Conjoint analysis: test price vs. features trade-offs. (5) Competitive benchmarking: position against alternatives. (6) Launch with higher prices and discount down—it's easier to lower than raise. Test with at least 100 respondents for statistical significance. Most startups underprice by 20-40%.
Key Test Product Pricing Takeaways
- Van Westendorp: 4 questions on price sensitivity
- A/B test different prices with user segments
- Customer interviews on willingness-to-pay
- Conjoint analysis for price vs. features
- Start higher—easier to lower than raise
- Test with 100+ respondents for significance
- Most startups underprice by 20-40%
- Competitive benchmarking as reference
- Test annually as market evolves
- Consider geographic price variations
Test Product Pricing Statistics
20-40%
typical underpricing
100+
respondents for significance
10-15%
price increase often possible
4
Van Westendorp questions