Business from the inside out

Pay-What-It’s-Worth Pricing: Just the Facts, Ma’am

by | Feb 16, 2012 | Pay What It's Worth Pricing

Worth

Here are some basic findings on using a Pay-What-It’s-Worth pricing system from the research paper Pay What You Like by J Fernandez and B Nahata:

1.

If a buyer feels that a product or service provides a positive value, they will never ‘free ride’ and not pay anything.

2.

Under certain conditions Pay-What-It’s-Worth can provide a larger profit than uniform pricing. A business that can best benefit from PWIW is:

  • small
  • exclusive
  • intimate
  • focused on personal service
  • creating loyal clientele

3.

People pay what they do because of their:

  1. fairness
  2. satisfaction
  3. market price awareness
  4. net income

4.

The pricing system is used by business owners throughout the world.

SHARE
Tara Joyce

Written by Tara Joyce

In 2008, I started this blog as I began working for myself. It is a reflection of my innerpreneurial journey, growing myself to grow my business. ABOUT ME

More Words to tickle your fancy…

Pay-What-It’s-Worth Pricing: Just the Facts, Ma’am

By Tara Joyce Time to Read: <1 min