Willingness to pay
Willingness to pay is the evidence that customers will pay for a product at a given price. The strongest evidence is money already moving; the weakest is a price someone says they'd accept.
What it means
Pricing is often set from hope: a competitor's page, a cost plus a margin, a survey answer. Each looks as solid in a spreadsheet as a price that has actually been paid, which is why the source of the evidence matters more than the number.
What customers already spend on the problem, whether on a tool, a freelancer or a staff member's time, is the best early anchor. A renewal at your price is the only proof.
How we use it
Own venture otlo has customers paying real money, which puts its pricing on the paid rung. It proves willingness to pay, not fit; that's a separate question.
Related terms
Published 28 September 2026. All terms