RunLin Wang wrote an article for Forbes titled How To Price Your Product: A Guide To The Van Westendorp Pricing Model.

« First, the following four questions must be posed at the end of the survey:

  1. At what price would it be so low that you start to question this product’s quality?
  2. At what price do you think this product is starting to be a bargain?
  3. At what price does this product begin to seem expensive?
  4. At what price is this product too expensive?  »

« After results from this survey are collected, they should be visualized on a line graph with price on the x-axis and the number of respondents on the y-axis. »

« The intersection of the number of people who think that the product is “too cheap” and “not a bargain” is the Point of Marginal Cheapness… and so this point acts as a lower bound of acceptable prices. »

« Similarly, the intersection of the “too expensive” and “not expensive” lines is the Point of Marginal Expensiveness, which acts as an upper bound of potential prices. »

« Additionally, the intersection of the “too cheap” and “too expensive” lines is called the Optimum Price Point (OPP). »

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