Buyer-set pricing
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We're using need-based pricing to refer to either of the following pricing schemes:
Pay What You Like
This is an increasingly common scheme, used successfully and profitably to sell software (e.g. Humble Bundle) and music (e.g. Radiohead). Buyers pay whatever they want to pay, based (hopefully) on what the purchase is worth to them in terms of what they can afford (the same amount of raw "value" might equate to a lower dollar-amount for someone with less cash to spare, but that doesn't mean they value what they receive any less).
There may or may not be:
- a minimum "floor" price (e.g. to cover the transaction cost)
- a "recommended" price (e.g. to break even on production costs assuming a certain number of sales)