This Element is an excerpt from Smart Pricing (ISBN: 9780131494183) by Jagmohan Raju and Z. John Zhang. Available in print and digital formats. When “pay as you wish” pricing makes sense--and how to make it work for you. Typically, a seller turns to “pay as you wish” pricing because he believes the product will drive business for a higher margin product, because he believes that “pay as you wish” can yield more than conventional pricing, or both. Radiohead’s In Rainbows campaign shared the same four key qualities as any successful “pay as you wish” pricing program....
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