Pay What You Want Pricing
Definition of Pay What You Want Pricing
This pricing method allows consumers to pay what they seem is fit for the item. That price may on occasion include zero but typically there is a floor price.
Description of Pay What You Want Pricing
When you give the consumer the choice to pay what they think is right, it gets rid of all of the cons of normal pricing.
Advantages of Pay What You Want Pricing
This method is attractive to shoppers since they are allowed to pay whatever their heart desires and they get rid of the typical doubt of whether the price truly justifies the item. It’s a useful tool for going into a market since shoppers who have never heard of them before, can try the item out for a very low price.
Disadvantages of Pay What You Want Pricing
There’s a chance that you won’t be able to pay off the overhead and other costs because many consumers will underpay. In other words, it’s quite risky.