Pay what you can

Pay what you can (PWYC) is a 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.

Pay what you want is in some cases utilized synonymously, however pay what you can is frequently linked to the philanthropy or socially situated uses, construct more in light of capacity 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.

    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.

    Pay what you can (PWYC) vs Pay what you want (PWYW)

    PWYC and 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

    PWYC In Operation

    See also

    References

      External links

      This article is issued from Wikipedia - version of the Wednesday, December 23, 2015. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.