How to use it
- Enter the price points you tested in your survey, typically four to eight steps across the plausible range.
- For each price, enter the percentage of respondents who would buy at that price.
- Optionally, enter the unit cost of the product or service.
- Read the demand curve, the revenue index for each price and the highlighted optimum.
Formula and logic
For every tested price, the calculator multiplies the price by the share of respondents who would buy:
revenue index = price × % who would buy
The optimal price for revenue is the one with the highest index. If you enter a unit cost, it also calculates:
profit index = (price − unit cost) × % who would buy
and highlights the price with the highest profit index.
Example, with hypothetical survey results and prices in any currency:
| Price | Would buy | Revenue index | Profit index (unit cost 5) |
|---|---|---|---|
| 8 | 70% | 560 | 210 |
| 10 | 58% | 580 | 290 |
| 12 | 45% | 540 | 315 |
| 14 | 30% | 420 | 270 |
Revenue peaks at a price of 10, but profit peaks at 12, because the buyers lost between 10 and 12 contributed little margin.
How to read the result
Read the shape of the curve rather than the exact percentages. Stated purchase intent overstates real buying, so the absolute levels are not a sales forecast, but the point where demand drops steeply is usually robust. A flat stretch of the curve means buyers barely notice the price difference; a sharp fall marks a threshold you should stay below.
Gabor-Granger shows one product in isolation, without competitors on the shelf. That makes it fast and easy to explain, but it can overstate tolerance for a higher price in crowded categories. When competitive context or feature trade-offs matter, conjoint analysis is the stronger method, and the Van Westendorp approach is better suited to finding an acceptable range at an earlier stage.
Results also differ by segment and by country. According to Eurostat, the 2024 price level index for actual individual consumption was 56.9 in Bulgaria and 121.0 in the Netherlands, with the EU-27 at 100, so a curve measured in one market should not be copied to another. Our pricing research service combines these methods with segment-level analysis.
Frequently asked questions
How many price points should I test?
Four to eight is the usual range. Fewer points give a coarse curve that can miss the threshold; many more make the questionnaire repetitive and invite careless answers. Set the lowest and highest points slightly beyond the prices you would realistically charge, and space the steps so that each one is a difference buyers would notice.
What counts as "would buy"?
Most studies ask purchase likelihood on a five-point scale and count the top one or two boxes, "definitely" and "probably would buy". Using only the top box gives lower, more conservative levels; using both gives higher levels but the same general shape. Whichever you choose, apply it consistently across all prices and all waves.
Should I use Gabor-Granger or Van Westendorp?
Use Van Westendorp when you need a sensible price range and know little about how buyers perceive the category. Use Gabor-Granger when the product is defined and you are choosing between a shortlist of prices, with a revenue or profit question to answer. Many studies include both, since they take only a few minutes of questionnaire time together.
Can I use the method for B2B or services?
Yes, provided respondents understand exactly what is being priced: scope, contract length, service level and payment terms. In B2B, ask the people who actually approve purchases and keep the description close to a real offer. Samples are usually smaller, so read the curve as directional. To run a study with your own buyers, request a proposal.
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