The Van Westendorp Price Sensitivity Meter is a market research technique used to determine an optimal price range for a product or service. It was developed by Dutch economist Peter van Westendorp in 1976.

The key aspects of the Van Westendorp pricing model are:

Four Key Questions

The model asks respondents four key questions to gauge their price perceptions and sensitivity:

1. At what price would you consider the product to be so expensive that you would not consider buying it? (Too expensive)
2. At what price would you consider the product to be priced so low that you would feel the quality couldn't be very good? (Too cheap)
3. At what price would you consider the product starting to get expensive, so that it is not out of the question, but you would have to give some thought to buying it? (Expensive/High Side)
4. At what price would you consider the product to be a bargain—a great buy for the money? (Cheap/Good Value)

You can use the free calculator below to enter your pricing value responses from your prospects, and come up with an optimum price for your product or servive.