January 25, 2009
Pay What You Want
Three businesses near Frankfurt — a buffet, a movie theater, and a deli — experimented recently with pay-what-you-want pricing, a la Radiohead.
The bad news? In the buffet, customers paid,on average, 20% less than the previous posted price.
The good news? Overall traffic to the buffet increased 30% — leading to a net gain in revenue.