Which price earns the most?

Your survey responses

Show each respondent a ladder of prices for the same product, ask yes or no at each, and record the highest price they said yes to. Write none, no or 0 for someone who refused even the lowest price; they count as zero demand at every price. Currency symbols are ignored. No thousands separators. A header row is skipped. Unit cost is what each sale costs you to serve; leave it blank to see revenue only.

Paste responses, then click Analyze.

Result

How it is calculated

Demand at a price is the share of all respondents whose highest accepted price is at least that price, with refusers counted in the total. Revenue per respondent is price times demand; profit is price minus unit cost, times demand. Demand only changes at the prices in your data, so the best price is always one of them, and a tie goes to the lower price. Elasticity between two adjacent prices is the arc elasticity: the change in demand over its average, divided by the change in price over its average; below -1 means demand falls faster than price rises. Bands come from 300 resamples of your respondents with replacement, with a fixed random seed, recomputing the best price each time.

Not modelled: competitor prices, discounts, churn, purchase frequency, and who was surveyed. Unverified: checked by hand calculation and unit tests only. Stated willingness to pay overstates real purchases, so test any price before committing.

Common questions

What is the Gabor-Granger method?

A pricing survey method from 1966. You show each respondent a series of prices for the same product and ask whether they would buy at each one. The share who say yes at each price gives a demand curve, and multiplying price by that share gives revenue per respondent, so you can see which price earns the most.

What data does it need?

One line per respondent with the highest price that respondent said yes to. Write none, no or 0 for someone who refused even the lowest price. Currency symbols are ignored, an optional header row is skipped, and thousands separators are not supported.

How is the best price chosen?

Demand is a step function that only changes at the prices you tested, so the best price is always one of them. The tool computes price times demand for each tested price and picks the highest, and on a tie it picks the lower price because it has more buyers. If you enter a unit cost it also finds the price with the highest profit.

How many respondents do I need?

Aim for at least 100 in the segment you sell to. This tool runs from 5 respondents and warns below 30. It also resamples your respondents 300 times and shows how often each price wins, so you can see how much a small sample moves the answer.

Is stated willingness to pay reliable?

Not as an absolute number. People say yes to hypothetical prices more often than they buy, and the gap varies by price. The ranking of prices and the shape of the curve are more trustworthy than the exact share who say yes, and a real price test is better than either.

What is the difference from Van Westendorp?

Van Westendorp asks four open price questions and finds a range of acceptable prices, but says nothing about demand or revenue. Gabor-Granger asks yes or no at specific prices and gives a demand curve, so it can rank prices by revenue or profit. Many teams use Van Westendorp to choose the ladder and Gabor-Granger to pick from it.

Is my survey data uploaded anywhere?

No. Everything you paste stays in this browser tab. There are no accounts, cookies or analytics vendors.