Pay-whatever-you-want 🤷‍♀️
This method has both benefits and drawbacks...
Have you ever tried the pay-whatever-you-want pricing strategy?
It allows customers to decide how much to pay for a product, and it can be an alternative to free trials or samples.Â
This method has both benefits and drawbacks.
And whether or not you should test this pricing format, depends on your goals.Â
But here are the different upsides and downsides of the pay-what-you-want option.
Why it works:
👉 Pay-what-you-want promos are seen as more original and entertaining and hence garner more attention.
👉 You’ll reach a better audience than simply giving something away for free.
Limitations:
👉 If a large number of companies adopt this method, the novelty may wear off.
👉 People are more likely to pay than to choose zero. However, the average price chosen by people is lower than when you sell at a fixed price.
👉 It shifts the decision-making burden on the client. This may cause analysis paralysis and as a result, an abandoned purchase. The “pick your own price” format could be the solution. So you basically give the user different pricing options, so they need to make a smaller decision.
Pay-what-you-want is an alternative to the most common formats, such as “just pay shipping”, or ”$1”. It’s not a strategy to generate revenue, but one to attract new customers.
The biggest advantage of these two is the novelty factor✨
Few brands implemented this format, although “just pay to ship” is pretty frequent.
Are you thinking about testing this strategy?
This method has both benefits and drawbacks...
Have you ever tried the pay-whatever-you-want pricing strategy?
It allows customers to decide how much to pay for a product, and it can be an alternative to free trials or samples.Â
This method has both benefits and drawbacks.
And whether or not you should test this pricing format, depends on your goals.Â
But here are the different upsides and downsides of the pay-what-you-want option.
Why it works:
👉 Pay-what-you-want promos are seen as more original and entertaining and hence garner more attention.
👉 You’ll reach a better audience than simply giving something away for free.
Limitations:
👉 If a large number of companies adopt this method, the novelty may wear off.
👉 People are more likely to pay than to choose zero. However, the average price chosen by people is lower than when you sell at a fixed price.
👉 It shifts the decision-making burden on the client. This may cause analysis paralysis and as a result, an abandoned purchase. The “pick your own price” format could be the solution. So you basically give the user different pricing options, so they need to make a smaller decision.
Pay-what-you-want is an alternative to the most common formats, such as “just pay shipping”, or ”$1”. It’s not a strategy to generate revenue, but one to attract new customers.
The biggest advantage of these two is the novelty factor✨
Few brands implemented this format, although “just pay to ship” is pretty frequent.
Are you thinking about testing this strategy?