CRO · Calculator · Intermediate · Saves 35+ hours
Price Sensitivity Calculator
A calculator for assessing customer price sensitivity.
What's included
- Van Westendorp analysis
- Conjoint analysis framework
- Elasticity estimation
- Segment analysis
- Recommendation engine
Best used when
- Testing new price points
- Preparing for price changes
- Understanding willingness to pay
- Segmenting by price sensitivity
The template
The Template
VAN WESTENDORP ANALYSIS
Price Sensitivity Questions
VAN WESTENDORP SURVEY
ASK THESE 4 QUESTIONS:
Q1: "At what price would you
consider this TOO EXPENSIVE to
consider purchasing?"
Answer: $_____
Q2: "At what price would you
consider this so INEXPENSIVE that
you'd question its quality?"
Answer: $_____
Q3: "At what price would you
consider this GETTING EXPENSIVE,
but still worth considering?"
Answer: $_____
Q4: "At what price would you
consider this a BARGAIN?"
Answer: $_____
PLOT RESPONSES:
x-axis: Price points
y-axis: % of respondents
IDENTIFY:
Point of Marginal Cheapness (PMC)
Point of Marginal Expensiveness (PME)
Optimal Price Point (OPP)
Indifference Price Point (IPP)
Analysis Template
| Price Point | Too Cheap % | Bargain % | Expensive % | Too Expensive % |
|---|---|---|---|---|
| $ | % | % | % | % |
| $ | % | % | % | % |
| $ | % | % | % | % |
ELASTICITY ESTIMATION
Price Elasticity Calculator
PRICE ELASTICITY
FORMULA:
Elasticity = % Change in Demand / % Change in Price
INPUTS:
Current price: $_____
Current volume: _____
Proposed price: $_____
Expected volume: _____
CALCULATION:
% Price change: ____%
% Volume change: ____%
Elasticity: _____
INTERPRETATION:
< -1: Elastic (price sensitive)
= -1: Unitary elastic
> -1: Inelastic (less sensitive)
REVENUE IMPACT:
Current revenue: $_____
Projected revenue: $_____
Change: $_____ (_____%)
RECOMMENDATION:
If elastic: Lower price carefully
If inelastic: Opportunity to raise
Segment Sensitivity Matrix
| Segment | Elasticity | Price Sensitivity | Implication |
|---|---|---|---|
| SMB | High/Med/Low | ||
| Mid-market | High/Med/Low | ||
| Enterprise | High/Med/Low |
Frequently asked questions
What is the Price Sensitivity Calculator?
A calculator for assessing customer price sensitivity.
Who is the Price Sensitivity Calculator for?
It is built for CROs and their teams working on Pricing & Packaging. The AI coach adapts it to your company, stage, and goals.
How long does the Price Sensitivity Calculator take to use?
It saves roughly 35+ hours versus building from scratch. Our AI coach can tailor the calculator to your situation in minutes, then hand you a step-by-step plan.
Is the Price Sensitivity Calculator free?
Yes. You can read the full calculator and start getting coached through it for free. Sign in to save your tailored version and track your next steps.
How does the AI coach help with the Price Sensitivity Calculator?
The coach teaches you the framework, asks a few questions about your business, tailors the calculator to you, and gives you measurable next steps to execute.