PRICING RESEARCH

Gabor-Granger Pricing Method

Determine price elasticity of demand and identify revenue-maximizing and profit-maximizing price points for a single product or service.

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Overview & Method Framework

The Gabor-Granger pricing technique exposes respondents to a specific product or service description and asks whether they would purchase it at a randomized price point. Depending on their response, higher or lower prices are presented in subsequent steps. The result is a precise demand curve and revenue curve.

Gabor-Granger Price & Revenue Curve

Simulated demand decay vs. total revenue optimization curve:

Peak Revenue @ $49 $49.00 $19 $99
• Demand (% Willing to Buy) • Projected Revenue Index

Key Capabilities & Benefits

  • Direct calculation: Direct calculation of purchase likelihood across incremental price points
  • Plots the: Plots the exact revenue-maximizing and profit-maximizing price
  • Calculates price: Calculates price elasticity of demand coefficient (PED)
  • Simple, fast,: Simple, fast, and respondent-friendly survey experience

When to Use This Method

  • Determining launch pricing for innovative products with few direct comparators
  • Evaluating price increase tolerance on existing core services
  • Testing price sensitivities for software licenses or subscription tiers
  • Fast-turnaround pricing sanity checks

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