Willingness to Pay (WTP) is one of the most popular, and slipperiest concepts, in the pricing world. Three key things to remember: (i) WTP can be shaped, it is not a given, (ii) WTP is a distribution and not a point, (iii) the shape of the WTP distribution impacts your pricing strategy.

Pricing strategy and design work inevitably includes a lot of numbers. Too often, we focus on the numbers describing the numbers, averages, medians, standards of deviation. In most cases, the shape of the distributions is as important as the absolute values.