How can we find out what customers are willing to pay relative to competitors, especially if our competitors’ pricing isn’t public or is very complex with custom quotes?

Based on our insights in Price to Scale, you can use a combination of customer research, indirect competitive assessment, and experimental pricing strategies to determine what customers are willing to pay. Here are some practical steps and approaches recommended in our SaaS pricing book:

Conduct In-Depth Customer Interviews:
Engage directly with your customers to understand their value perceptions. Ask open-ended questions about how they evaluate cost relative to the benefits received. This qualitative insight helps you gauge their price sensitivity even when competitor prices are unclear.
Survey and Use Price Sensitivity Measurement Tools:
Utilize surveys that ask customers about different price points and the value they expect. Techniques such as Van Westendorp’s Price Sensitivity Meter can provide a range of acceptable prices and help identify perceived value, even when competitors' pricing is custom or hidden.
Analyze Indirect Competitive Signals:
While competitors may not publish their pricing, you can still gather clues by:

Speaking with industry experts and channels that may have insight into typical price ranges.
Researching publicly available case studies, partner announcements, or testimonials.
Observing the scope and scale of competitor implementations (e.g., features offered vs. customer success stories).

Run Pricing Experiments:
Leverage A/B testing and pilot programs to introduce different pricing models or tiers gradually. These experiments help you collect real-market feedback on how your target segment reacts to various price points, tailoring your approach based on actual acceptance and conversion rates.
Consider Value-Based Pricing:
Focus on the value your product delivers rather than trying to mirror competing price points exactly. Documents like our pricing strategy book Price to Scale emphasize that pricing should be reflective of the customer's perceived benefit and the internal cost structure, rather than just competitor price signals.

In summary, by combining customer interviews, pricing surveys, and controlled experiments, you can triangulate a clearer picture of what customers are willing to pay—even when the competitive landscape is opaque. These methods not only inform your pricing strategy but also ensure it aligns with the value perception of your users.