Insights Article

What is pricing research and how does it deliver results
2nd September 2025
Why pricing analysis is key to strategic success

Watch the video below to see how we help brands find their optimal price.

Setting the right price is one of the most important commercial decisions any business can make. Whether you’re considering a price increase to boost revenue, looking to stay competitive in a crowded market, or launching a new product with no direct benchmark, pricing analysis ensures you make data-driven choices rather than relying on instinct.

At Clusters, we combine advanced analytics with deep market insight to help brands set their pricing with confidence.

 

What is pricing analysis?

Pricing analysis is the process of using structured research and modelling to understand what customers are willing to pay and how price impacts demand, profitability, and perception.

Our approach blends quantitative pricing models with wider market research, ensuring your pricing strategy reflects:

  • Consumer needs and expectations
  • Competitor positioning
  • Market conditions and trends
  • Your own margin and revenue goals

This ensures pricing decisions are never made in isolation but are informed by the full picture.

 

Our approach to pricing analysis

We don’t take a one-size-fits-all approach. Instead, we tailor our methods to your market, audience, and commercial objectives.

Appealing pricing packages

We work with clients not only to identify the optimal price point but also to explore the most effective ways to present pricing. This can include introducing group or family bundles, creating alternative packaging for services to broaden appeal, or optimising peak and off-peak pricing structures. We also analyse opportunities for add-ons versus inclusive packages, ensuring the pricing strategy is both compelling to customers and commercially robust.

Subscription preferences

For brands offering subscriptions, we can use insights and analytics to uncover which model – for example, monthly rolling or annual upfront – customers find most attractive.

Revenue projections

Knowing what customers are willing to pay is only part of the story. We model expected revenue at different price points, helping you understand the balance between demand and profitability before you make any changes.

 

The Van Westendorp Price Sensitivity Model

One of the most reliable and effective pricing tools we use is the Van Westendorp Price Sensitivity Model (PSM). Dating back to 1976, it remains a market-leading method for identifying an optimal price range.

This model involves surveying your audience to determine what they consider:

  • Too cheap (and potentially low quality)
  • A bargain
  • Acceptable value
  • Too expensive

By plotting these results, we reveal not just the ‘sweet spot’ for pricing but also the range customers are comfortable with, providing confidence in your decision.

 

Watch: Pricing analysis in action

In this short video, we explain how our pricing analysis works, and how you can use pricing strategies to drive sales and protect margins.

 

Why businesses trust our pricing analysis

Our clients, from retail to financial services, choose us because we provide actionable insights that make a measurable difference. The key benefits include:

  • Drive sales – Identify attractive price points that win customers without undercutting perceived value.
  • Grow your margins – Understand where you can raise prices while maintaining demand.
  • Protect your reputation – Ensure prices reflect the quality of your products or services.
  • Uncover opportunities – Spot chances for add-ons, bundles, or cross-sell opportunities based on real customer demand.

 

Start building your data-driven pricing strategy

The right pricing strategy can be the difference between underperformance and profitable growth. By combining analytics, customer insights, and market intelligence, we help businesses make pricing decisions that stand up to scrutiny and deliver results.

Get in touch with our team today to discuss how our pricing analysis can support your next pricing decision.

 

Want these kinds of results?

We’d love to talk with you about how our insights could help your business grow. Drop us an email at hello@clusters.uk.com or call us on +44 (0)20 7842 6830.

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