Willingness-to-Pay (WTP) Calibration Model™
Find the price band your buyers accept.
The Willingness-to-Pay (WTP) Calibration Model™ maps 4 price bands, from too cheap to too expensive.
- 4steps
- 1links in the Registry map
- 1systems it works with
The problem it fixes
Pricing often starts from a guess.
Do you know the price at which buyers start to say no? Without 1 fixed method, each pricing job rebuilds the logic from scratch.
How it works
4 parts that set the band.
Pick the method
Choose how to ask buyers: a Price Sensitivity Meter (PSM) survey, a Gabor-Granger test, or stand-in inputs when answers are too few.
Map the 4 bands
Place prices on 1 line: too cheap, acceptable, optimal and too expensive.
Flag the confidence
Mark how strong the evidence is: full, substitution-flagged (stand-in inputs) or inference-only.
Match buyer types
A matrix shows which buyer archetypes accept which band. It feeds how price tiers are built.
The diagram
Where we use it
Where we use it
The outcome
A price backed by evidence.
You most likely price inside a band buyers accept, and you know how strong the evidence behind it is.
Results are most likely to follow if the process is followed properly, with good intention and best effort.
Start with a free call.
A free 30-minute call, with quick fixes you can start using straight away.