Rise of the Innerpreneur

Seller’s Choice: Why Would I Use Pay-What-It’s-Worth-Pricing?

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As a business owner, here are some reasons why you might employ Pay-What-It’s Worth pricing:

1. It reduces transaction-related costs

  • reduces the cost incurred from finding info on your customers willingness to pay
  • removes the cost of promotional pricing initiatives
  • reduces the cost of sales
  • removes the cost of setting prices

2. It maximizes your potential market participation

  • removes price as the major barrier to entry for the client
  • adds value creation as a major reason for engagement for the client

3. (Almost) guaranteed positive revenue

  • you will makes sales and receive business (as long as your service/product creates value)

4. Potentially higher profits (than setting prices) if you are:

  • small
  • exclusive
  • intimate
  • have loyal clientele
  • provide personal service
I’m Tara, a writer, communication designer, and self-professed wizard of less obvious things. I love hearing from you, so please feel free to connect with me.

I deeply appreciate your support of my work, through allowing it to grow in your imagination, through sharing it with others, and through your monetary support.

About Tara Joyce

I'm Tara, a writer, communication designer, and self-professed wizard of less obvious things. I love hearing from you, so please feel free to connect with me. I deeply appreciate your support of my work, through allowing it to grow in your imagination, through sharing it with others, and through your monetary support.

One Thought on “Seller’s Choice: Why Would I Use Pay-What-It’s-Worth-Pricing?

  1. Ashima Saigal on February 15, 2013 at 12:10 PM said:

    Tara,

    This is great, thanks for this great list of items on what types of business it works best for. I still haven’t gone that route, but I’d like to try it out… the challenge for me is that for new customers, I haven’t had the experience with them. So that loyal part isn’t there yet. Typically, my clients leave and don’t return. That’s my goal, to make them self sufficient. So, that might be another issue for me.

    Perhaps, I will try this with my existing client base when they ask me for advice. It might work well.. I’ll keep you posted.

    Thanks again.

    Peace,
    Ashima

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