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