Pricing Research

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Help smooth the path to purchase with accurate pricing analysis.

Whatever sector you work in, you may be wondering whether it’s better to push up your prices to maximise revenue, or whether to keep them low to drive sales. If you’re launching a completely new product or service, with relatively few competitors, choosing the right price is even more of a challenge.

There’s no hard and fast rule here – much of it depends on the type of product or service you offer. An artisan product that takes longer to produce and requires specialist materials, will be more expensive than a mass-made item. We can help you understand the appetite for your product and any stumbling blocks you might face, as part of our wider product development research services.

Knowing how much customers are prepared to pay can feel like a guessing game, and if you get it wrong you could be left with excess stock and squeezed margins. Pricing market research helps you overcome these problems – but what exactly does it entail?

There are a number of ways that you can inform and test your pricing strategy. We use both pricing analytics and wider market insights, taking both consumer needs and any direct competitors into consideration. We never assess our client’s product or service in isolation – the real insights are found when taking all external and internal factors into account.


We conduct expert pricing market research to help our clients discover:


  • Appealing pricing packages
    A robust pricing strategy goes beyond simply defining how much something will cost. We uncover the most appealing ways to convey the same pricing. This is a good way to identify any opportunities for selling group or family tickets to an experience, for example, rather than setting a single price per person.


  • Subscription preferences
    Even if you know that a subscription model is the right choice for your brand, we can identify whether your audience will be more receptive to a monthly rolling subscription or annual payment.


  • Model revenue projections
    A price might work for the market, but does it make your business viable? By measuring consumer demand, we can learn how your optimum price range will translate into expected revenue and make any necessary adjustments.

The Van Westendorp Model

Dating back to 1976, the Van Westendorp Price Sensitivity Model (PSM) remains one of the most effective methods for determining the right price today. This is a technique that we follow when conducting pricing market research for our clients. It’s particularly useful when there is no cost data available from similar products, as it uses information gathered from surveying customers instead.

This method is based on the idea that there’s an optimum price range for every product or service, rather than one single price point. Research results are plotted on a graph, giving brands a better understanding of the full range that their customers would be willing to pay – but also how they may feel about a product that is pitched at each price.

At the lower end, buyers may worry a product or service is too cheap and therefore poor quality but could purchase it anyway. The upper end of the price range might be a stretch, but they are prepared to pay it because they believe it’ll be good value for money, or because they cannot buy what they want elsewhere.


Why use market research for pricing?


Our customers depend on our market-leading research services to develop new concepts, understand consumer behaviours, and determine the effectiveness of their advertising. Price analysis works in the same way, giving you a clear insight into how much people are prepared to spend.

Key benefits include:


  • Drive sales
  • Attractive prices to win customers without them worrying about it being too cheap
  • Grow your margins
  • Know exactly what prices will attract customers without squeezing your margins
  • Protect your reputation
  • Prices that reflect the quality of your products
  • Uncover new opportunities
  • Learn where you could expand your offering with new add-ons, or identify opportunities for up or cross-selling based on real customer demand.

Our team can explain more about how our pricing research can ensure your product or service makes the biggest impact on the market.

Get in touch to discuss how our proven techniques can protect your brand’s reputation while driving more sales, always based on leading insights.

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