/pricing-validation

name: pricing-validation
description: "Test willingness to pay before launching with proven pricing research methodologies. Combine Van Westendorp, Gabor-Granger, and behavioral techniques to find your optimal price point. Use when: **After solution validation** to test willingness to pay; **Before launch** to set initial pricing; **Pricing changes** to test new price points; **New segments** to understand price sensitivity by segment; **Competitive positioning** to price against alternatives"
license: MIT
metadata:
  author: ClawFu
  version: 1.0.0
  mcp-server: "@clawfu/mcp-skills"

Pricing Validation

> Test willingness to pay before launching with proven pricing research methodologies. Combine Van Westendorp, Gabor-Granger, and behavioral techniques to find your optimal price point.

When to Use This Skill

• **After solution validation** to test willingness to pay
• **Before launch** to set initial pricing
• **Pricing changes** to test new price points
• **New segments** to understand price sensitivity by segment
• **Competitive positioning** to price against alternatives
• **Feature pricing** to understand value of add-ons

Methodology Foundation

| Aspect | Details | |--------|---------| | **Source** | Van Westendorp PSM (1976), Gabor-Granger method, behavioral economics | | **Core Principle** | "People can't accurately predict what they'd pay. Use structured methods to triangulate, and verify with real purchasing behavior." | | **Why This Matters** | Pricing wrong costs you customers (too high) or money (too low). Every 1% improvement in price has 11% profit impact on average. |

What Claude Does vs What You Decide

| Claude Does | You Decide | |-------------|------------| | Structures analysis frameworks | Strategic priorities | | Synthesizes market data | Competitive positioning | | Identifies opportunities | Resource allocation | | Creates strategic options | Final strategy selection | | Suggests implementation approaches | Execution decisions |

What This Skill Does

1. **Finds price range** - Identifies acceptable pricing boundaries 2. **Tests price points** - Measures demand at specific prices 3. **Identifies optimal price** - Balances revenue and conversion 4. **Segments by willingness** - Who will pay more vs. less 5. **Validates pricing model** - Subscription vs. one-time vs. usage 6. **Reveals value perceptions** - What drives pricing acceptance

How to Use

Run Van Westendorp Analysis

I want to find the optimal price range for [product].
Run me through Van Westendorp Price Sensitivity Meter.
Provide the questions and analysis framework.

Test Specific Price Points

I'm considering pricing at [$X, $Y, $Z].
Help me design a Gabor-Granger test to measure demand at each price.

Validate Pricing Without Asking Directly

I want to validate my $99/month pricing without asking "would you pay?"
What behavioral and indirect methods can I use?

Instructions

Step 1: Choose Your Pricing Research Method

## Pricing Research Methods

### Method Selection Guide

| Method | Best For | Sample Size | Complexity |
|--------|----------|-------------|------------|
| Van Westendorp PSM | Finding price range | 100-200+ | Medium |
| Gabor-Granger | Testing specific prices | 50-100 | Low |
| Conjoint Analysis | Feature/price trade-offs | 200+ | High |
| A/B Testing | Final validation | 500+ visitors | Medium |
| Behavioral Signals | Qualitative insights | 10-30 | Low |

### When to Use Each

**Van Westendorp (Price Sensitivity Meter):**
- You don't know where to start
- Want to find acceptable price range
- Have access to survey respondents

**Gabor-Granger:**
- You have candidate price points
- Want to test specific prices
- Need demand curve

**Conjoint Analysis:**
- Multiple features and price levels
- Need to understand trade-offs
- Have resources for complex analysis

**A/B Testing:**
- Already have traffic/users
- Testing final price decisions
- Want real conversion data

**Behavioral Signals:**
- Early stage, small sample
- Qualitative validation
- Can't run formal surveys

---

Step 2: Van Westendorp Price Sensitivity Meter

## Van Westendorp PSM

### The Four Questions

Ask respondents all four questions about the product:

1. **TOO EXPENSIVE:**
   "At what price would you consider this product to be so expensive
   that you would not consider buying it?"

2. **TOO CHEAP:**
   "At what price would you consider this product to be priced so low
   that you would question its quality?"

3. **EXPENSIVE BUT WORTH IT:**
   "At what price would you consider this product starting to get expensive—
   it's not out of the question, but you'd have to think about buying it?"

4. **GOOD VALUE:**
   "At what price would you consider this product to be a bargain—
   a great buy for the money?"

### Analysis

Plot cumulative distribution curves for each response:
- "Too Expensive" (cumulative from low to high)
- "Too Cheap" (cumulative from high to low)
- "Expensive" (cumulative from low to high)
- "Good Value" (cumulative from high to low)

### Key Price Points

| Point | Definition | Meaning |
|-------|------------|---------|
| **PMC** (Point of Marginal Cheapness) | Where "Too Cheap" intersects "Expensive" | Below this, quality concerns emerge |
| **PME** (Point of Marginal Expensiveness) | Where "Too Expensive" intersects "Good Value" | Above this, significant resistance |
| **OPP** (Optimal Price Point) | Where "Too Expensive" intersects "Too Cheap" | Best price for adoption |
| **IDP** (Indifference Price Point) | Where "Expensive" intersects "Good Value" | What people expect to pay |

### Acceptable Price Range
PMC to PME = your acceptable pricing range

### Interpretation Guide

**Narrow range (PMC close to PME):**
- Price sensitive market
- Commodity perceptions
- Strong competitor reference prices

**Wide range (PMC far from PME):**
- Price flexibility
- Differentiated product
- Segmentation opportunity