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{{Short description|Business model}}
'''Pay what you can (PWYC)''' is a [[Nonprofit organization|non-profit]] or revenue driven plan of action which does not rely on upon set costs for its merchandise, but rather requests that clients pay what they feel the item or administration is worth to them. It is frequently utilized as a limited time strategy, yet can likewise be the general technique for working together. It is a minor departure from the blessing economy and cross-endowment, in that it relies on upon correspondence and trust to succeed.
{{distinguish|Pay what you want}}
{{Multiple issues|
{{More citations needed|date=January 2023}}
{{Original research|date=January 2023}}
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'''Pay what you can''' ('''PWYC''') is a [[non-profit]] or [[for-profit]] [[business model]] which does not depend on set prices for its goods, but instead asks customers to pay what they feel the product or service is worth to them.<ref name="washtimes">{{cite news|url=http://www.washingtontimes.com/news/2008/dec/03/the-pay-as-you-can-cafe/|title=The 'pay as you can' cafe|last=Gergen|first=Chris|author2=Gregg Vanourek|date=December 3, 2008|publisher=The Washington Times|accessdate=2009-03-10}}</ref><ref>{{cite web|url=http://www.budgettravel.com/bt-dyn/content/article/2008/02/29/AR2008022902761.html|title=Pay-what-you-like Restaurants|last=Mantzaris|first=Anna|date=April 2008|publisher=Budget Travel|accessdate=2009-03-10|url-status=dead|archiveurl=https://web.archive.org/web/20080517071419/http://budgettravel.com/bt-dyn/content/article/2008/02/29/AR2008022902761.html|archivedate=2008-05-17}}</ref><ref>{{cite news|url=http://www.time.com/time/arts/article/0,8599,1666973,00.html|archive-url=https://web.archive.org/web/20071004205009/http://www.time.com/time/arts/article/0,8599,1666973,00.html|url-status=dead|archive-date=October 4, 2007|title=Radiohead Says: Pay What You Want|last=Tyrangiel|first=Josh|date=October 1, 2007|publisher=Time Magazine|accessdate=2009-03-10}}</ref> It is often used as a promotional tactic,<ref>{{cite web|url=http://www.alleytheatre.org/Alley/Special_Offers_EN.asp?SnID=2|title=Pay What You Can|publisher=Alley Theatre|accessdate=2009-03-10}}</ref> but can also be the regular method of doing business. It is a variation on the [[gift economy]] and cross-subsidization, in that it depends on [[Reciprocity (social and political philosophy)|reciprocity]] and trust to succeed.


'''Pay what you want''' is in some cases utilised synonymously, however pay what you can is frequently often linked to the philanthropy or socially situated uses, construct more in light of capacity to pay.
"[[Pay what you want]]" is sometimes used synonymously, but "pay what you can" is often more oriented to charity or socially oriented uses, based more on ''ability'' to pay, while "pay what you want" is often more broadly oriented to perceived value in combination with willingness and ability to pay.
Pay what you can is a business model used by various different businesses and organisations. This business model simply lets the consumer decide what that wish to pay for the product or service. Pay what you can is often seen as a donation and not actually purchasing a product for the organization to make a huge profit. Pay what you can organisations often implement this business model once they have achieved profit from previous sales and advertisement, hence the ability to implement to Pay what you can strategy.
<references group="http://davidcharles.info/pay-what-you-like-books/" />


== Motivation ==
== Motivation ==
Giving buyers the ability and freedom to decide what they are willing to pay for can be very successful, this eliminates the issues of conservative pricing. Buyers are attracted to the fact they are not obligated to pay a certain price for a product, this eliminates all issues of an item becoming overpriced in the consumers eyes, the customer can then make their own judgement on what the product is actually worth.
Giving buyers the ability and freedom to decide what they are willing to pay for can be very successful, this eliminates the issues of conservative pricing. Buyers are attracted to the fact they are not obligated to pay a certain price for a product, this eliminates all issues of an item becoming overpriced in the consumer's eyes, the customer can then make their own judgment on what the product is actually worth.

== Pay what you can (PWYC) vs Pay what you want (PWYW) ==
PWYC and [[Pay what you want|PWYW]] are virtually the same business model strategies but have slightly different intentions.

The Pay what you can model is often associated with charities and social uses and the ability to pay, and on the other hand the Pay what you want model is often associated with the perceived value in combination with the intention, willingness and ability to pay.


== Advantages ==
== Advantages ==
* Entices members of the public to engage with the business or organization (Potential future customers).
* Entices members of the public to engage with the business or organization (potential future customers).
* Attracts a large number of potential customers from friends and families of current customers (Word of mouth).
* Attracts a large number of potential customers from friends and families of current customers (word of mouth).
* Great way of free market research and immediate feedback for the business or organization. For example, if a private book shop was selling its own published books and the customer valued it at £10 ($15) rather than say £4 ($6.15) and was willing to pay that, this would display positive feedback for the company. The organisation could then use this information for personal statistics and data.
* Great way of free market research and immediate feedback for the business or organization. For example, if a private bookshop was selling its own published books and the customer valued it at £10 ($15) rather than say £4 ($6.15) and was willing to pay that, this would display positive feedback for the company. The organisation could then use this information for personal statistics and data.
* No barriers to entry, this allows the customers to literally try the product or service for nothing,
* No barriers to entry, allowing customers to try the product or service for nothing.
* Differentiates the business from other competitors - a unique selling point.
* Great way to differentiate from other business and organisations competitors. Not many businesses use this technique, hence the reason this is a great Unique Selling Point (USP).


== PWYC In Operation ==
== Examples ==
* A Place at the Table <ref name="A Place at the Table">{{cite web |title=A Place at the Table |url=https://tableraleigh.org/}}</ref>
* [[American Museum of Natural History]]
* [[American Museum of Natural History]]
* [[Grace Ndiritu]] - COVERSLUT© fashion project
* ''[[In Rainbows]]'' An album by [[Radiohead]] - This became a public phenomenon when the PWYC strategy was announced via digital download from the Radiohead official website.
* [[FC United of Manchester]]'s Season Ticket policy <ref name="FC United season sickets">{{cite web | title=FC United season tickets |url=http://www.fc-utd.co.uk/seasontickets#:~:text=Our%20%E2%80%9Cpay%20what%20you%20can,subsidise%20those%20who%20pay%20less.}}</ref>
* [[Freeware|Freeware Applications]]
* [[Humble Bundle]]
* ''[[In Rainbows]]'' – An album by Radiohead
* [[Lentil as Anything]]
* [[Lentil as Anything]]
* [[One World Cafe]]
* [[Metropolitan Museum of Art]] - This museum also has the PWYC model implemented, however they have a recommendation of £13 ($20).
* [[Panera Cares]] community cafés<ref name="Panera-Mission">{{cite web |title=Our Mission |url=http://paneracares.org/our-mission/ |url-status=dead |archive-url=https://web.archive.org/web/20190315215450/http://paneracares.org/our-mission/ |archive-date=15 March 2019 |website=Panera Cares |publisher=Panera Bread Foundation |accessdate=4 January 2017}}</ref>
* [[One World Cafe]] - If customers cannot afford to pay anything, they can volunteer to cook, clean the dishes and work on the garden grounds in return for food/drink vouchers.
* [[Paste Magazine]]
* [[SAME Cafe]] - Also use the PWYC system, High end cafe which allows customers to pay what they can, also famous for allowing customers to work one hour voluntarily in exchange for one meal.
* [[Pink Peacock]] café<ref>{{Cite web |title=די ראָזעווע פּאַווע – pink peacock |url=https://pinkpeacock.gay/ |access-date=2022-03-10 |language=en-UK}}</ref>
* [[Panera Bread]] - In 2010, Panera Bread bakery used the model in a St. Louis, Missouri suburb, and has generated further attention by opening more since and is continuing to increase its total revenue.
* [[SAME Cafe]]
* [[Freeware|Freeware Applications]] - These applications prompt the user to donate to the creator/author rather than to the application directly. This is seen as Donation-ware.
* [https://alittlecabininthealps.com A Little Cabin in the Alps]


== See also ==
== See also ==
Line 39: Line 45:


==External links==
==External links==
* http://time.com/money/3576844/pay-what-you-want-businesses/
* [https://web.archive.org/web/20141111140750/http://time.com/money/3576844/pay-what-you-want-businesses/ Time (magazine)]
* http://www.theguardian.com/stage/theatreblog/2011/aug/17/pay-what-you-can-theatre
* https://www.theguardian.com/stage/theatreblog/2011/aug/17/pay-what-you-can-theatre
* https://www.arcolatheatre.com/visit/tickets-and-discounts
* http://www.bbc.co.uk/news/uk-england-33609867
* http://time.com/money/3576844/pay-what-you-want-businesses/
* http://www.theguardian.com/stage/theatreblog/2011/aug/17/pay-what-you-can-theatre
* https://www.arcolatheatre.com/visit/tickets-and-discounts
* https://www.arcolatheatre.com/visit/tickets-and-discounts
* http://www.bbc.co.uk/news/uk-england-33609867
* https://www.bbc.co.uk/news/uk-england-33609867
* http://www.bbc.co.uk/sport/0/football/30715162
* https://www.bbc.co.uk/sport/0/football/30715162
* http://www.agilepwyc.org/
* http://www.infoq.com/news/2010/08/agile-training-gift


[[Category:Business models]]
[[Category:Business models]]
[[Category:Economic theories]]

Latest revision as of 12:52, 8 November 2024

Not to be confused with Pay what you want.

Pay what you can (PWYC) is a non-profit or for-profit business model which does not depend on set prices for its goods, but instead asks customers to pay what they feel the product or service is worth to them.[1][2][3] It is often used as a promotional tactic,[4] but can also be the regular method of doing business. It is a variation on the gift economy and cross-subsidization, in that it depends on reciprocity and trust to succeed.

"Pay what you want" is sometimes used synonymously, but "pay what you can" is often more oriented to charity or socially oriented uses, based more on ability to pay, while "pay what you want" is often more broadly oriented to perceived value in combination with willingness and ability to pay.

Motivation

[edit]

Giving buyers the ability and freedom to decide what they are willing to pay for can be very successful, this eliminates the issues of conservative pricing. Buyers are attracted to the fact they are not obligated to pay a certain price for a product, this eliminates all issues of an item becoming overpriced in the consumer's eyes, the customer can then make their own judgment on what the product is actually worth.

Advantages

[edit]
  • Entices members of the public to engage with the business or organization (potential future customers).
  • Attracts a large number of potential customers from friends and families of current customers (word of mouth).
  • Great way of free market research and immediate feedback for the business or organization. For example, if a private bookshop was selling its own published books and the customer valued it at £10 ($15) rather than say £4 ($6.15) and was willing to pay that, this would display positive feedback for the company. The organisation could then use this information for personal statistics and data.
  • No barriers to entry, allowing customers to try the product or service for nothing.
  • Differentiates the business from other competitors - a unique selling point.

Examples

[edit]

See also

[edit]

References

[edit]
  1. ^ Gergen, Chris; Gregg Vanourek (December 3, 2008). "The 'pay as you can' cafe". The Washington Times. Retrieved 2009-03-10.
  2. ^ Mantzaris, Anna (April 2008). "Pay-what-you-like Restaurants". Budget Travel. Archived from the original on 2008-05-17. Retrieved 2009-03-10.
  3. ^ Tyrangiel, Josh (October 1, 2007). "Radiohead Says: Pay What You Want". Time Magazine. Archived from the original on October 4, 2007. Retrieved 2009-03-10.
  4. ^ "Pay What You Can". Alley Theatre. Retrieved 2009-03-10.
  5. ^ "A Place at the Table".
  6. ^ "FC United season tickets".
  7. ^ "Our Mission". Panera Cares. Panera Bread Foundation. Archived from the original on 15 March 2019. Retrieved 4 January 2017.
  8. ^ "די ראָזעווע פּאַווע – pink peacock". Retrieved 2022-03-10.
[edit]
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