Setting prices equal to willingness to pay is ultimately what every pricing practitioner aims to achieve. But consumer minds are complex and, essentially, there are hundreds, if not thousands, of willingness to pay determinants.
Some of the primary determinants of willingness to pay are values and needs of the buyer, perceived market value, what the buyer expects other people would be willing to pay (especially acquaintances), and how long the buyer expects to derive value from the product.
Of course, these determinants are not explicitly stated anywhere -- consumers couldn’t even tell you if they wanted to.
PriceBeam has many years of experience measuring customers’ willingness to pay, and we have put this experience into developing a new solution that enables businesses to conduct their own willingness to pay research to the same high standards, which factors in the infinitely many variables of the consumer mind.
Our solution then produces a detailed willingness to pay graph, such as the one above, which you can use to identify the profit-maximizing (or revenue-maximizing) price point. This is the key value we deliver to customers - we make highly advanced analyses incredibly simple.