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The spread of the radiohead pricing model

February 6, 2009

Radiohead’s now famous promotional gambit of encouraging people to pay whatever they want, seems to be spreading.

There’s now a restaurant in London  doing the same thing and encouraging its dinners to pay what they think the meal is worth. Not everything is free, dinners have to pay for their drinks.

While it seems dangerous and risky to adopt such a strategy, it sends out a clear signal that the producer is confident of user satisfaction, so confident they are prepared to take the risk of getting zero dollars for their efforts.

It’s an appeal to our humanity and the idea that we will reward people for a job well done and the fact they are taking a risk makes us empathize with them even more.

It’s also a great test for the quality of your product or service.

Do you believe you are good enough to get away with charging people only what they want to pay for your products or services?

Posted by Ed Cotton

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