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The Van Westendorp Price Sensitivity Meter and How to Graph it in Google Sheets
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This template will explain what the Van Westendorp Pricing Sensitivity Meter is, how to use it, and how to graph it in Google Sheets.
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What is it?Template Instructions:
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The Van Westendorp Pricing Sensitivity Meter is a popular method for determining how much your buyers are willing to pay for your products and servcies.

When trying to survey about pricing, the most common method is to just ask the potential buyer outright what they would pay for the product. This “direct question” method, which seems simple and easily interpretable, has a number of flaws. First, most consumers have a range of acceptable prices that they would be willing to pay for a certain product, not just a single price point. Many also give you a "low-ball" number in an attempt to get your product for a lower price.

The Van Westendorp model is more comprehensive, asking multiple questions that indirectly measure someones willingness to pay instead of directly posing the question. Rather than asking potential buyers to identify a single price point, the Van Westendorp model helps assess a range of prices instead of just one. 		1. Start by watching this walk-through video.







2. Distribute your survey and collect responses. Here's a basic survey template to get you started.
3. Paste your survey results here.
4. Copy/Paste all values from Survey Results into one column here.
5. Calculate the frequency of each value in your dataset here.
6. Calculate the percentages of each value in your dataset here.
7. Create your Van Westendorp graph here.
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How does it work?How to read the graph:
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Potential customers are asked to complete a survey with these four questions:

1. At what price would you consider this product to be a bargain—a great buy for the money? (Great Deal)

2. At what price would you consider the product to be priced so low that you would feel the quality couldn’t be very good? (Too Cheap)

3. At what price would you consider the product starting to get expensive, not enough to rule it out, but you would have to give some thought to buying it? (Could Justify)

4. At what price would you consider the product to be so expensive that you would not consider buying it? (Too Expensive)

After collecting your survey responses, you can use this template to graph them. 		The X-axis shows a range of monetary values. The Y-axis shows the percentage of respondents thinking that the value and everything below it are [insert specific characteristic depending on the line color].

The left intersection of "Too Cheap" and "Could Justify" is the lowest price in your acceptable range. The intersection of "Great Deal" and "Too Expensive" defines the highest price.

The bottom intersection of “Too Cheap” and “Too Expensive” is called the Optimum Price Point (OPP). In theory, this price is the optimal price because it minimizes the number of people who are dissatisfied with the price of your product one way or the other.