Here's a cool concept for a changing economic landscape: name your own price for what you want to buy. If it sounds too good to be true, it's because cynicism is ingrained in our culture. But this isn't some pie-in-the-sky, communist vision of Nirvana, it's a real life tactic being used in true-blooded capitalism. Radiohead's album In Rainbows was released in 2007 under this profit model, and apparently made money.
Other retailers have decided to follow suit and see if consumers are willing to pay a fair price voluntarily. Here are some examples:
- Java Street Cafe: Customers pay what they think is fair for menu items. Seriously. According to cnn.com, the cafe still makes money. Cnn.com also has a list of other pay-what-you-like restaurants.
- K-OS: The Toronto-based rapper just finished a 10-date tour that let fans pay what they wanted after the concert.
- Priceline.com: The travel site lets you name your own price on flights, hotels and rental cars by entering a bid and seeing if it is accepted.
- FC United of Manchester: The fan-owned, professional soccer club in England (not to be confused with the Premier League club Manchester United) lets supporters pay what they want for season tickets.
- Paywhatyouwantonline.com: This music site lets you listen to music for free and then pay what you want if you decide to download the songs. One caveat, the minumum payment is 50 cents per song and $5 per album.
- Quest Theatre Ensemble: The Chicago production organization doesn't charge for their productions (plays etc.), but instead lets viewers pay as they see fit.
This seems like an innovative approach to incorporating consumers into the purchasing process. But can this model turn a profit over time? Let me know what you think. Also leave a comment with any other pay-what-you-want products/sites that you know of.
For once, it seems that the customer really is always right.
--Jens
Photo taken from this photostream and used with permission of a Creative Commons license.
I've heard of this idea! The K-OS concerts were advertised in my area as the "good karma tour". I wonder if the sustainability of this model will last through the economic downturn.
Any chance BRASS is risky enough to test this model on their magazine?
Hi Jessica,
It's hard to say if the "karma" model will work long term. Hopefully it will. As far as brass testing the model, you bet... just as soon as our government subsidy checks start coming! =)
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