Know which price holds. Before it hits the market.
Test price points, price increases and price tiers before they reach the market. With measured purchase intent in realistic purchase situations, as a complement to willingness to pay from surveys.
Freshly roasted, delivered automatically.
€16.90 / month
Subscribe nowAt €16.90, barely lower purchase intent and around 8% more revenue potential.
Consumers decide in their familiar online environment
The strongest profit lever
1% higher price, 11% more profit.
An analysis of 2,463 companies shows: a price that is 1% higher raises operating profit by 11.1% on average. Higher volume or lower costs have a much weaker effect. It also works the other way round: every percent a price is set too low costs a corresponding amount of profit. The only open question is how much demand a higher price costs. That is exactly what a test before launch shows.
Source: Marn & Rosiello, “Managing Price, Gaining Profit”, Harvard Business Review, 1992.
Increase in operating profit from a 1% improvement
Average across 2,463 companies (Compustat), all other things being equal.
Why purchase intent alone is not enough
Find the price with the greatest revenue potential.
A low price almost always wins the most decisions. Only the combination of purchase intent and price, in other words the revenue potential per price point, shows the best price. That is exactly what Horizon measures: purchase intent per price variant, the resulting revenue and, with your costs, the margin. What counts is the price that earns the most, not the one chosen most often.
Illustration with sample values.
Case · Home appliances
Four prices. Demand keeps pace up to +15%.
Virgin Pure wanted to know how far the monthly price of a water dispenser could rise before demand was lost. Same ad, four offer pages, only the price changes.
3,574
consumers
7 days
in field
3 weeks
to the decision
Purchase intent per price (add to basket)
Demand only drops at £39.99. Virgin Pure raised the price by 15%.
Typical questions
Which pricing question do you face?
For pricing, product management and leadership: when a price directly moves margin and volume.
01
Will the price increase hold?
How many customers still buy or sign up after the increase?
02
Which entry price?
Which price works for a new product or a new plan?
03
How many price tiers?
Good, Better, Best or one tier fewer?
04
Discount or bonus?
Which promotion actually generates more sign-up intent?
05
Subscription or one-off purchase?
Do more customers take out a subscription, or do they prefer to buy once?
06
Justifying a premium
Which surcharge can be achieved with which benefit?
Methods compared
Van Westendorp, conjoint or behavioural test?
Every method has its strength. Horizon complements surveys where the final decision is at stake.
Van Westendorp
Conjoint
Horizon
Basis
Stated price perception
Choice between profiles in a survey
Purchase or sign-up decision in an online environment
Strength
Quick price range
Many attributes at once
Few variants, real behaviour
Best for
Early orientation
Attribute weighting
The final pricing decision
How a test works
A robust decision in four weeks.
Your effort: a briefing, product images and four short meetings. The Horizon team takes care of the rest.
Week 1
Question and variants
You bring your variants, we sharpen the question and define up to six variants.
Week 2
Ads and offer pages
Horizon builds realistic ads and offer pages, with your brand or a brand developed specifically for the test.
Week 3
7 days in field
Your target group sees the offer in their familiar online environment and decides. You follow everything live.
Week 4
Result and data analysis
Purchase or sign-up intent per variant, statistically robust, as a data analysis for your decision.
The insights provided by Horizon enabled us to implement an astonishing 15% price increase with confidence.
To take away
What your result looks like.
This is what a Horizon results report looks like: question, variants, purchase or sign-up intent and data analysis on just a few pages.
Price test coffee subscription
bohnwerk · Example
+8%
Revenue potential B vs. A
−5%
Demand B vs. A
€16.90 has the highest revenue potential.
Example values
FAQ
Frequently asked questions.
How many price variants are possible?
Up to six price points per test. How many make sense for your question depends on how fine-grained the price-demand curve should be.
Does this also work for price increases?
Yes. Comparable groups from your target group see the offer at either the current or the new price. You see how much demand the increase actually costs before it reaches the market.
Can the test run without our brand?
Yes. You test with your brand or a brand created just for the test. Horizon provides the imprint and privacy policy.
How does this fit with our market research?
As a complement. Surveys provide price ranges and motives, Horizon shows at which price customers actually buy or sign up in the offer environment.
Let's talk about your next decision.
You bring your pricing question, we sketch a possible test design. No preparation needed on your side.
You will speak with Daniel Putsche
Founder & CEO, 30 minutes
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