“Price sensitivity has three components: first is purchasing power, the other two are commitment — how committed are they, how passionate are they — and the last is how strong is your value proposition. It's really the relationship between those three things and you have to assess where the gaps are.”

Price sensitivity has three components — purchasing power × commitment × value prop

'Are they cheap?' is the wrong question. Decompose willingness to pay into purchasing power, commitment to the activity, and strength of your value prop — then attack whichever is the binding constraint. Surfers seem cheap on the surface but coastal demographics are affluent and commitment is sky-high; the binding constraint is usually value-prop strength.