If you’re launching a new product or reviewing your pricing strategy, the Van Westendorp Price Sensitivity Meter is a simple yet powerful tool to help you find the optimal price point – without guesswork.
Van Westendorp Pricing Model: A Smarter Way to Find Your Product’s Sweet Spot
Developed by Dutch economist Peter van Westendorp in the 1970s, this pricing technique helps you understand how customers perceive value and price. It’s based on four straightforward questions that reveal the price range your audience considers acceptable:
- Too expensive – At what price would the product be so expensive that you wouldn’t consider buying it?
- Too cheap – At what price would the product seem so cheap that you’d question its quality?
- Expensive – At what price does the product start to feel expensive, but still worth considering?
- Good value – At what price does the product feel like a bargain?
By plotting responses to these questions, you can identify the optimal price point, as well as the acceptable price range – giving you confidence that your pricing won’t scare off customers or leave money on the table.
Why Use Van Westendorp?
- Quick and cost-effective – You only need around 50 responses to get reliable insights.
- Ideal for new products – Avoid underpricing and maximize perceived value.
- Flexible – Works well in online surveys, telephone interviews, or face-to-face research.
- Global insights – Helps you compare price perceptions across markets.
When to Use Van Westendorp
This model shines in situations where you need quick, directional pricing insights:
- Launching a new product or service
- Testing pricing in unfamiliar markets
- Evaluating customer perception of value
- Comparing pricing across regions or segments
It’s especially useful in early-stage product development, when you need to validate pricing assumptions before investing heavily.
Real-World Example: Pricing a Language Training Course
A client wanted to launch a new blended language training program combining online and phone-based learning. Using the Van Westendorp method, we surveyed potential customers across multiple countries. The results showed consistent price perceptions globally – allowing us to recommend a unified pricing strategy rather than tailoring prices by region.
