How OpenAI Priced ChatGPT Plus Using a 50-Year-Old Model?!

OpenAI's pricing strategy for ChatGPT Plus is a fascinating story. Instead of guessing, they used the Van Westendorp Price Sensitivity Model, a 50-year-old technique. Here's how it works:

The Four Questions

At what price would you consider the product too expensive?
At what price would you consider the product too cheap?
At what price would you start to consider the product getting expensive but still worth considering?
At what price would you consider the product a bargain?

Analyzing Responses

By collecting and analyzing answers, OpenAI determined the optimal price range for ChatGPT Plus: $20/month.

Simplified Version

For smaller businesses or fewer customers, a two-question approach can be used:

What's a fair price for the product?
At what price does it become too expensive?

Benefits

The Van Westendorp model provides valuable insights into customer perceptions, helping businesses set prices with confidence.

Key Takeaways

Customer-centric pricing
Data-driven decision-making
Simple yet effective model

By understanding customer price sensitivity, businesses can optimize pricing strategies and drive growth.

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