Definition
The maximum price a customer is willing to pay for a product before deciding it's not worth the cost.
Why it matters for growth
Understanding WTP through research or pricing experiments prevents both underpricing, which leaves revenue on the table, and overpricing, which kills conversion.
Example
Van Westendorp pricing surveys reveal most customers are willing to pay between $40 and $80, guiding a founder's final price point.
FAQ
- What is Willingness to Pay (WTP)?
- The maximum price a customer is willing to pay for a product before deciding it's not worth the cost.
- Why does Willingness to Pay (WTP) matter for growth?
- Understanding WTP through research or pricing experiments prevents both underpricing, which leaves revenue on the table, and overpricing, which kills conversion.
- What is an example of Willingness to Pay (WTP)?
- Van Westendorp pricing surveys reveal most customers are willing to pay between $40 and $80, guiding a founder's final price point.