Pay what you want?

[MartyR]

Does the pay what you want pricing strategy ever work out reasonably? My wife and I are considering it for our farm stand. We will shut down in October, so we'd have a little less than two months to try it. What do you think? I think it's a good idea. Since our customers already know what we charge, I think they'll continue paying that amount. And the PWYW pricing scheme will attract attention and bring in new customers. My wife is more cautious. She thinks people will take advantage, and we'll lose money like crazy. Thoughts?

 

[Ritar]

Interesting. I have a friend who has a "Pay what you can - stand". He complains often that people take without paying. His stand is a small stand, nothing large.
I'd be interested to hear how you make out.

 

[GrowPro]

I think your wife is right on the money. I can see PWYW pricing working out for a charity, but that's about it. I understand your viewpoint. However, you should consider that your regular customers might really think your prices are too high. Maybe they just go along with it because you have no competition, or maybe your farm stand is more convenient. Either way, I could see a scenario where your average customer pays less. Why take the risk?

 

[Henderson]

I know people who have tried it; there's always some folks that take advantage of the situation. If you do change your pricing scheme, then I'd run it as a limited-time promotion for a couple of weeks at the most. That way you can test it without losing a ton of money.

 

[Holii]

I don't think it will end well either. I mean, if you are trying to be charitable it might work. I like the 2-week trial. Really though, what are you trying to do?