Smarter Pricing: How to capture more value in your market

3. What would you pay for this? Perils and pitfalls of pricing research

The customer entered the car showroom and admired the metallic black coupé by the window. The professional car salesman came over and opened a conversation. He asked a lot of questions. The one question he never asked was ‘how much would you pay for this model?’ He needed the answer to do the deal but an oblique approach was needed.

Where do you work, what kind of job do you have? (Indicates what he or she can afford.)

Questions about family and holidays uncover willingness to spend money and priorities.

Questions about other models being considered illustrates knowledge of the market place and market prices.

Where do you live? (Discovers the convenience of the dealer’s ...