Interview WTP Translates to Purchases
Willingness to pay expressed in customer discovery interviews translates to actual credit card purchases at similar price points.
The Assumption
Customer discovery interviews are the foundation of our pricing assumptions. When developers say “I’d pay $100/month for this”, we assume they actually would. But interview WTP and actual WTP are often different:
- Interviewees want to be helpful and say yes
- Hypothetical money is easier to spend than real money
- Context matters—interview ≠ purchase moment
- Budgets, priorities, and alternatives change
All our pricing ($50-200/month for SmartBoxes) comes from stated WTP. If stated WTP is 3x actual WTP, our unit economics break.
Evidence
Supporting signals:
- Customer discovery is industry standard practice
- Experienced interviewers can calibrate for optimism
- Pre-orders and waitlists provide harder signals
- Competitive pricing provides anchor points
Counter-signals:
- “Would you pay X?” is a leading question
- People lie to interviewers (unconsciously)
- Interview context primes positive responses
- No skin in the game during interviews
What Would Prove This Wrong
- Actual conversion rates are 3x lower than interview-stated intent
- Achieved price points are 50%+ lower than stated WTP
- Free tier users refuse to convert despite prior stated intent
- Pricing experiments show much lower WTP than interviews suggested
Impact If Wrong
If stated WTP is 3x actual WTP:
- $150/month stated → $50/month actual
- Unit economics break at lower prices
- Need more customers to hit revenue targets
- May need to find higher-WTP segments
Testing Plan
Validation:
- Compare interview WTP to actual first purchases
- Track price sensitivity in conversion funnel
- Run pricing experiments (different price points shown)
Calibration:
- Ask “What do you currently pay for similar tools?”
- Ask “What would make this not worth it?”
- Use “Van Westendorp” price sensitivity questions
Kill criteria: If actual WTP is less than 50% of stated WTP, our pricing model needs major revision.
Related
Depends on:
- Developers Will Pay For Sandboxes — pricing assumptions rest on this
Affects:
- All revenue projections
Assumption
Willingness to pay expressed in customer discovery interviews translates to actual credit card purchases at similar price points.
Depends On
This assumption only matters if these are true:
- Developers Will Pay For Sandboxes — 🔴 ⚪ 50%
How To Test
Compare stated WTP in interviews to actual conversion rates and price points achieved.
Validation Criteria
This assumption is validated if:
- Actual conversion within 50% of interview-stated intent
- Price points achieved within 30% of stated WTP
- Early adopters pay without significant negotiation
Invalidation Criteria
This assumption is invalidated if:
- Stated WTP consistently 3x higher than actual payments
- Free tier users refuse to convert despite stated intent
- Pricing experiments show much lower WTP than interviews
Dependent Products
If this assumption is wrong, these products are affected: