WTS: willingness to sell

Willingness to sell (WTS) is an economic concept: the least money a seller is prepared to accept to part with a product or service. WTS reflects the value the seller places on what they offer, taking into account production costs, the profit margin they want and market conditions. It is used to analyze market supply, set selling prices, assess public policies and put a value on goods that are not traded, such as natural resources or property rights. It can be measured in several ways, including surveys, choice experiments and the analysis of market prices.

Here are a few examples of willingness to sell in different settings:

1. Real estate: an owner might be willing to sell their house for no less than €250,000, considering the market value of similar homes in the area and what they spent on improvements and upkeep.
2. Craft and art: an artist might have a WTS of €10,000 for a painting, considering the time spent making it, the cost of materials and the profit they want.
3. Farming: a farmer might be willing to sell 100 kilograms of wheat for at least €180, accounting for production costs, the market price and a fair return on their work.
4. Renewable energy: a wind energy producer might have a WTS of €0.05 per kWh, based on the cost of installing and maintaining the turbines and on government incentives.
5. Professional services: a consultant might be willing to work for no less than €60 an hour, considering their skills and experience and the rates charged by others in the field.

In each example, WTS can vary widely between sellers, depending on their production costs, profit goals and how they perceive the value of what they offer. WTS helps explain how supply works in a market and, together with consumers’ willingness to pay (WTP), how equilibrium prices are set.

See also: WTP: willingness to pay, Value stick, Willingness to pay and willingness to sell.