LIMEN

/'liː.men/

Behavioral Pricing Intelligence

Before the price is fixed: where your buyers stop.

Pricing research from decisions, not from answers.

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When You Need It

Your product has no market price yet.

New technology, no competitor to copy, and a minimum below which it is not worth building. We show it to target buyers at a range of prices and find where each one stops. This happens before the list price is fixed, while changing it still costs nothing. The price in the business plan then rests on how target buyers decided.

You do not know which benefit carries the price.

Savings, risk avoided, ease of use. The same measure compares descriptions of the same product on the same people, and shows whether one moves the threshold. The measure is the decision, not a rating.

Your price has to be sold, inside and outside.

Every step of the chain from list price to realized price adds its margin. A price holds only if the people selling it believe it. The sales team sees where the product keeps its value and where it does not. Distributors and retailers see where their own customers stop buying.

What You Get

One respondent gives one threshold: the price where that person stops buying. Twenty buyers give twenty thresholds: a range to decide on, not a market estimate. Across a sample that represents the market, the thresholds add up to a demand curve. It shows the share still buying at each price, and so the revenue and margin at each price.

Example · AirPods 4, price study

Why AirPods: a product everyone knows, at a price most people have already seen. The question was what willingness to pay looks like once a market has a price in memory. 52 Italian consumers saw AirPods 4 online at prices from €79 to €249 and answered buy or not buy, each decision timed.

In this sample the choices fell into two groups of about equal size. One group stopped buying near €149, Apple's retail price. The other stopped sharply near €101, well below it. The split describes this sample; it was not set before the study.

Apple's €149 sits at the threshold of the group that pays more. With an assumed cost of €60, that price gives about 72% of the maximum revenue and about 86% of the maximum profit: a choice for margin and position, not for maximum profit.

Click to enlarge

The case in full: when one market was two →

What Surveys Miss

Asked about price, people answer tactically. A survey collects what they choose to say.

7%called the drink expensive
25%would not buy it

Same drink, same price. Across our studies, what people say and what their decisions show differ by 29–50%.

In 15 years of commercial pricing, Tommaso Marson rarely recommended pricing research for this reason. In B2B, buyers answer as negotiators.

The Method

LIMEN does not ask for a price. It times the decision.

  1. 01

    The respondent sees a product and a price, and answers buy or not buy.

  2. 02

    Across a range of prices, each decision is timed to the millisecond.

  3. 03

    Clear decisions are fast. Near the threshold the decision slows. That is where the price stops being accepted.

On a laptop, about ten minutes per respondent.

Click to enlarge

Research Basis

Decision time is an established signal. LIMEN applies it to price.

  1. 1868

    Donders

    Timing a decision reveals the process behind it.

  2. 2010

    Milosavljevic et al.

    One model of how a decision builds up explains both choices and their timing.

    Judgment and Decision Making

  3. 2018

    Clithero

    Adding response times to choices cuts the error in predicting new choices by 17–21%.

    Journal of Economic Behavior & Organization

  4. 2019

    Konovalov & Krajbich

    Response times show how strong a preference is, even when two people make the same choice.

    Judgment and Decision Making

Who

LIMEN is built by Tommaso Marson, who has worked 15 years in commercial pricing across B2B and B2C markets: industrial aftermarket, crop science, retail.

He came to the research from pricing work, looking for better instruments.

tommasomarson.com →

If a price needs evidence before it is fixed.

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