‘Pay What You Want’ is obviously not for everyone. Going from a budget deficit to a surplus will be challenging or perhaps impossible if you spend too much time creating unique items or have greater overhead expenditures. Additionally, rather than generating long-term revenue, this kind of strategy is better suited to achieving short-term objectives. A PWYW pricing strategy may be an excellent way to get attention and nurture trust, even while it hasn't yet produced new sales leads, fresh publicity, or public exposure.
So, if you wish to appeal to a wider audience, you should offer lower prices or even offer free items. PWYW pricing, however, has a few potential drawbacks:
- It may reduce the perceived value of the product.
- It decreases or even eliminates income, especially in the long term, because it can be difficult to predict the outcomes.
- It does not guarantee that people will buy a full-fledged version of the product after getting a free trial.
In fact, the PWYW pricing method and dynamic pricing are quite similar. Both tactics can increase sales by stimulating demand, boosting customers' willingness to pay, or doing both simultaneously. The first, however, is based on the perceived value of the product by the client, and the second is based on a complex study of historical sales data and demand forecasting.