Willingness to Pay: How to Measure What Customers Will Actually Pay
This guide outlines six methods for estimating willingness to pay and the governance needed to translate these estimates into effective pricing decisions. Many companies set
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One practice: end-to-end Pricing & Revenue Growth Management. We design the strategy and governance, build the analytics and AI capabilities, and drive the adoption, through three disciplines and four practitioner-led training programs. Capability stood up in 90–120 days; typical year-one outcome 200–400 bps of gross profit.
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Discover how Revology Analytics propels mid-market businesses to sustainable, profitable growth by building advanced, in-house Revenue Growth Analytics & Management (RGM) capabilities—fast.
Our senior expert-led, hands-on approach ensures you own the tools, insights, strategy and processes needed to thrive long-term.
We would love to hear from you.
Let’s chat!
Explore Revology Analytics’ curated thought leadership on various Revenue Growth Analytics and Management topics.
Our case studies, white papers, webinars, and toolkits illuminate best practices and emerging trends. Gain actionable insights to refine your holistic Revenue Growth Management strategies and capabilities, fueling sustainable, profit-focused decisions across your organization.
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Discover how Revology Analytics propels mid-market businesses to sustainable, profitable growth by building advanced, in-house Revenue Growth Analytics & Management (RGM) capabilities—fast.
Our senior expert-led, hands-on approach ensures you own the tools, insights, strategy and processes needed to thrive long-term.
We would love to hear from you.
Let’s chat!
Gain exclusive access to the latest insights from over 150 commercial leaders on the state of Revenue Growth Analytics in 2025, based on our expanded Revenue Growth Analytics Maturity Scorecard™.
One practice: end-to-end Pricing & Revenue Growth Management. We design the strategy and governance, build the analytics and AI capabilities, and drive the adoption, through three disciplines and four practitioner-led training programs. Capability stood up in 90–120 days; typical year-one outcome 200–400 bps of gross profit.
We would love to hear from you.
Let’s chat!
Discover how Revology Analytics propels mid-market businesses to sustainable, profitable growth by building advanced, in-house Revenue Growth Analytics & Management (RGM) capabilities—fast.
Our senior expert-led, hands-on approach ensures you own the tools, insights, strategy and processes needed to thrive long-term.
We would love to hear from you.
Let’s chat!
Explore Revology Analytics’ curated thought leadership on various Revenue Growth Analytics and Management topics.
Our case studies, white papers, webinars, and toolkits illuminate best practices and emerging trends. Gain actionable insights to refine your holistic Revenue Growth Management strategies and capabilities, fueling sustainable, profit-focused decisions across your organization.
We would love to hear from you.
Let’s chat!
Revology’s flagship discipline. We co-design your pricing strategy and governance, build the AI-enabled price analytics and optimization engines that power them, and drive the adoption that turns both into margin. End to end, inside your stack, with your team. Typical year-one outcome: 200–400 bps of gross profit; 4–6% gross margin recovery when B2B channel pricing is in scope.
Pricing is art and science. The art is reading the customer, channel, and competitive set; the science is the elasticity model, the price waterfall, the promo ROI engine, and the analytics that put a defensible number in your team’s hands before the next quote goes out. Revology co-designs both layers alongside your commercial team — pricing strategy and governance from former functional executives who have led pricing, plus the AI and modeling capability from partners with PhDs in artificial intelligence.
We build it inside your stack, not as a black box: a pricing command center where finance, sales, and pricing work from one source of truth, and a scenario model that lets you stress-test a price or promo before it reaches the market. For mid-market companies ($100M–$2B), the result is a pricing operating system your CFO and sales VP both trust — with the IP and the math in your team’s hands. Typical year-one outcome: 200–400 bps of gross profit, with 4–6% gross margin recovery when B2B channel pricing is in scope.
Most mid-market companies leak margin in ways no monthly report surfaces: list prices that have not kept pace with cost, discounting that varies 10 points between reps for identical customers, promotions where nearly half the spend returns less than it costs, and channel terms negotiated years ago that nobody owns today. The data to find these leaks exists in your ERP and CRM right now. What is missing is the operating capability to find them systematically and close them for good: the strategy, the analytics, and the decision cadence. That capability is what we build.
We design the path (Strategy & Governance). Pricing strategy and monetization, value-based and dynamic pricing architectures, price-pack architecture, promotion and trade guardrails, and channel pricing policy, plus the governance cadence: decision rights, escalation rules, and the weekly operating rhythm that keeps pricing discipline alive.
We build the engines (Analytics & AI Capabilities). Price elasticity models, price waterfall and profit-leakage analytics, promotion effectiveness and optimization, markdown and clearance optimization, competitive pricing intelligence, and pricing agents. All of it built inside your existing stack, with your team writing code alongside our partners. AI is a strategic enabler here, not the product: when a simpler method reaches the goal faster, we use the simpler method.
We drive the adoption (Execution). Change management with sales and finance, pricing organization design, and hands-on training through our corporate training programs, so the elasticity models get used in Tuesday’s pricing call instead of admired in a quarterly review.
Every organization is unique, including yours. That’s why we don’t offer one-size-fits-all, cookie-cutter solutions like many other strategy consulting firms.
The result is user-friendly and agile margin analytics and optimization solutions delivered within as few as three months, perfectly tailored to your unique business needs, and fully operable without costly external resources.
But don’t just take our word for it. See how other industry leaders have used solutions to grow their bottom lines.
Want to implement an effective pricing strategy? Contact us today to speak to one of our experienced pricing strategy consultants, or take our Revenue Growth Analytics quiz to discover how to boost revenue.

What are the main gaps in our pricing strategy and execution that prevent us from taking advantage of these opportunities, and how can we address them?

How can we develop a comprehensive internal roadmap, including the necessary capabilities, talent, culture, and a "pricing operating system," to enhance our pricing effectiveness and ensure the success of future investments?

How should I allocate my promotional budget to optimize gross profit and revenues?

What is the business and customer impact of my promotional investment decisions?

What is my and my customers' ROI of promotional investments?

How can we adjust our pricing or product value proposition in response to customer feedback to either mitigate revenue or gross profit erosion or accelerate growth?
Pricing Strategy Development: Creating comprehensive pricing strategies that align with your business goals. This includes setting pricing objectives, defining pricing and discounting tactics, and developing a pricing segmentation and governance framework to ensure consistent execution and continuous improvement.
Pricing Governance and Policy Formulation: Establishing pricing policies and governance frameworks that standardize pricing decisions across the organization, ensuring compliance and reducing price variability.
Organizational Capability Building: Developing internal capabilities through training and workshops to empower your teams with the skills and knowledge necessary for effective pricing and revenue management.
Pricing Technology Implementation: Assisting in the selection, implementation, and integration of advanced pricing software and tools that support data-driven pricing decisions and enhance pricing processes.
Descriptive and Diagnostic Pricing Analytics Platform Development: Designing customizable and robust pricing analytics platforms using Power BI, Tableau, or custom web applications. These platforms provide functional leaders with critical insights that drive business and customer success. Our tailored data visualization solutions encompass various areas within Pricing, Promotions, Sales, and Marketing, allowing for dynamic and interactive data storytelling.
Price Waterfall and Profit Leakage Analysis: Pinpointing significant opportunities in your transactional pricing, helping your Pricing and Sales teams recapture lost profits, and putting more money in your pockets.
Growth Decomposition (Rate-Mix Analysis) and Optimization: Systematically decomposing the critical drivers of your Revenue and Gross Profit performance into Pricing, Cost, Unit Volume, and Sales Mix drivers, and helping your Sales teams to refocus their efforts on the right products, customers, or geographies and your Pricing teams to course-correct adverse pricing actions.
Industry Margin Pool Analysis: Providing insights on the winners and losers of your industry’s value chain, helping your Pricing and Sales teams negotiate better terms or restructure rebate programs into pay-for-performance agreements.
Price Elasticity Modeling: Using customized statistical modeling or more advanced machine learning algorithms to help you understand the Unit Volume and Profit impact of your regular (List Price) and promotional price changes and those of your competitors. Understand price sensitivity by product for your Distributors, Retailers, and Consumers.
Dynamic Scenario Analyses: Machine Learning-enabled Volume, Revenue, and Profit scenario analyses built into your Power BI, Tableau, or custom web platform environment for easy consumption and action by your Pricing and Sales teams.
Pricing Markdown Optimization: Customized solution to manage your clearance discounting strategy to balance the need for increased liquidity and incremental profit while delivering clear Markdown Pricing Guidelines to your Pricing and Sales teams.
Dynamic Pricing Capabilities: Saving you thousands of working hours annually on intelligent price analytics & execution for the long tail of your product assortment, tailored to the customer’s profile and market characteristics.
Competitive Pricing Intelligence and Lead/Follow Analyses: Helping your Pricing and Sales teams better understand your industry price position and anticipate competitor price moves.
Pricing Sentiment Analysis: Using Natural Language Processing to help you understand what product reviews, customer service interactions, and social media chatter say about your customer price perception.
Perceived Price-Value Mapping: Compared to anchor brands, monitoring your relative price and value position in the marketplace helps you evaluate potential price or product changes to drive market share.
Conjoint Analysis / Gabor Granger / Van Westendorp Studies: Helping your Pricing and Product teams facilitate popular customer research methods to understand pricing and feature trade-offs for new products and to complement machine learning-based price sensitivity models.
Trade Promotion Effectiveness (TPE) Capabilities: Providing micro- and macro-level Promotional ROIs to your Sales, Pricing, Marketing, and Category Management teams. Our TPE solutions are customized to your business, leverage harmonized internal and external/syndicated data, and are built into your Power BI, Tableau, or custom web platform environment for easy consumption and action.
Industry Margin Pool Analysis: Providing insights on the winners and losers of your industry’s value chain, helping your Pricing and Sales teams negotiate better terms or restructure Promotion & Rebate programs into pay-for-performance agreements.
Trade Promotion Optimization (TPO) Capabilities: Providing you with ML-enabled simulation capabilities to predict the impact of price discounts and promotional events, including in-store merchandising support, time, and place of execution. Promotional Optimization capabilities help you generate account-specific promotional calendars that maximize a specific volume, share, or profit growth objective.
TPX Vendor Assessment and Selection: The Consumer Products and Manufacturing industries have many capable software vendors specializing in industry-specific TPX (Trade Promotion Management, Effectiveness, and Optimization) solutions. For firms seeking enterprise-grade TPX software, Revology Analytics can manage the requirements analysis and gathering and the TPX vendor assessment and selection process to ensure optimal results.
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This guide outlines six methods for estimating willingness to pay and the governance needed to translate these estimates into effective pricing decisions. Many companies set
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Revenue Growth Management is the discipline of managing price, promotion, product mix, and channel terms as one integrated system to grow gross profit rather than revenue alone. In practice, it means knowing your true price elasticities, the real ROI of every promotion, and where the price waterfall leaks, and having the governance to act on all three every week.
The capability is stood up in a 90–120 day engagement. Typical year-one outcomes are 200–400 bps of gross profit improvement, and 4–6% gross margin recovery when B2B channel pricing is in scope. The year-one number comes from your team running the system, which is why adoption and training are built into the engagement instead of sold after it.
No. Messy commercial data is the normal starting condition. The Capabilities Assessment maps data readiness in the first two to three weeks; if the foundation needs work, our Commercial Analytics Transformation discipline builds it as part of the same program.
Pricing software gives you an engine without a driver: a license, an implementation, and a renewal cycle. We build the engines inside your own stack, and we also build the part vendors skip: the strategy, governance, and trained team that make the engines change actual prices. You own the models and the IP outright.
Pricing & RGM is one of three disciplines in Revology’s end-to-end practice. See how it connects to your data foundation (Commercial Analytics Transformation) and your demand engine (Sales & Marketing AI Enablement).
Revology Analytics® is the end-to-end Pricing & Revenue Growth Management advisory firm for mid-market companies: strategy and governance, AI-enabled analytics, and the adoption that turns both into profit.
Over 225 companies took our scorecard to improve their Revenue Growth Analytics & Management capabilities.
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