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Originally Posted by dwixi  Obviusly you can't give a book away because you would lose money, maybe you could give it away in ebook version, but yeah remember radioheads most recent album they gave away for free. And people that did find it valueble and could afford it paid for it anyway, some even donated £100 just from getting the album. For someone that's already abondant with money this should be the right path. |
It's funny because I'm doing a research paper in marketing about the concept of "Pay what you want" which is relatively new. When the fixed costs are high, and the variable cost are low, then in some tests including restaurants, the concept of "Pay what you want" has worked in that the restaurant ended getting a higher revenue and higher overall profit when they implemented this compared to before when their items was at a fixed price. One interesting thing about the restaurant is that even though people had the option to pay $0, not a single person ever did. The study was so successful, that the restaurant owner decided to keep on offering lunch buffet for "Pay what you want" price even after the study was over.
The funny thing for me, among many is that one of my research paper I'm starting off on my research (from which I learned about the study with the restaurant), actually even briefly mentioned the Radiohead, and how Radiohead managed to make a lot of money from letting people pay what they want to download their albums..
Now, that's not to say that it'll work in all cases (the same study showed a movie theater generated less income with the Pay What You Want concept, though that may have involved the fact there was no advertisement/notice about the new temporary concept for the theater), but I find the concept very interesting to allow people to pay what they want, which is why I'm studying it now and researching marketing theories associated with it.
Nevertheless, I'm not saying Steve should do this at all. I just find it a very interesting topic, this "Pay what you want".
