It sounds like a radical gesture, but it is a deliberately deployable instrument. Pay-What-You-Want works where social norms and relationships carry the price.
What it is
With Pay-What-You-Want, customers set the price themselves — with or without a minimum. The method relies on fairness, social norms and intrinsic appreciation rather than pre-set pricing.
How it works in practice
- Indie music: Bandcamp releases with "pay what you want, minimum €0".
- Restaurants: occasional cases in Germany, Switzerland and Italy where guests pay according to their feeling.
- Software bundles: Humble Bundle as a market reference for tiered Pay-What-You-Want models.
What customers gain
- Ability to pay fair prices according to personal judgement.
- Avoidance of buying reluctance due to high list price.
- An expression of personal appreciation for the provider.
What providers gain
- High attention via differentiation from competitors.
- Closer customer relationship and stronger brand loyalty.
- Targeted access to new buyer groups without a price barrier.
Where to be careful
- Revenue risk: the average price paid is regularly below market.
- Scaling: in high-volume businesses, only deployable as a campaign.
- Perception: trial-only customers exploit the method.
When does the method fit?
Pay-What-You-Want works for products with low marginal cost, high emotional bond and a close relationship between provider and buyer. In high-scale, transactional businesses it is a PR stunt, not a pricing model.
Andreas Stauber
Founder & Managing Director, Resilient Value GmbH