The assumption I was tasked with testing was that our food-delivery subscription prices are reasonable from the perspective of our target market. This is an extremely important assumption to test because we calculated our financial models and pricing very meticulously, and our current prices would ensure healthy margins despite the astronomically high costs of R&D and manufacturing.
I tested this assumption by creating a questionnaire disguised as an interest or pre-order form for our product, titled “Paws & Nourish — BuddyBundle Interest Form / Pre-order”. In our form, we took people through the process of pre-ordering our product or registering interest by first asking them if they would like to fill out a quiz for their pet to get personalized food. However, they could also choose to just have the standard pet food formula and not fill out the quiz. Then, after someone filled out the pet quiz (or skipped it through the second option), they were brought to a page where they were given the choice of picking up the food or getting it delivered, and after that section, we asked about prices. We had two of our price options (both the same price per pound but different amounts to see how that would also affect the potential buyer): $150 for a 15-pound bag and $75 for a 7.5-pound bag. Our third option was “I would like to be contacted for alternate pricing options (please only select if absolutely opposed)” to test if people think our prices are reasonable or not.
We sent our form to a diverse set of pet owners, from college students to single adults to families, skewing towards high income to measure this assumption on our target market. Our hypothesis, test, and learnings are detailed in our test and learning cards below!
