Letting customers set your price sounds crazy. But Radiohead made a $10 million success out of letting customers name their own price to download their album, In Rainbows. Others have experimented with this business model, too. Here is one of the most interesting twists I've read:
let your loyal customers help you determine the right price point for you next release.
South African BLANKbottle has gone a step further. The boutique winemaker's founder, Pieter Walser, sent 20 cases of its latest premium white wine Moment of Silence
to loyal customers on consignment, asking them to evaluate the wine and
then pay him what they thought it was worth. They paid up to ZAR 90 per
bottle (USD 11.80 / EUR 7.50), and the average price came to ZAR 50.
Since BLANKbottle aims to exceed customers' quality vs. price
expectations, the wine went on sale to the public at a price of ZAR 40.
Walser, for his part, got a high return on the wine he risked in the
venture. In addition to the publicity he garnered, he determined a new
product's price point based on the actual purchasing decisions made by
the winery's best customers. Feedback that's likely to be more valuable
than the opinions volunteered by focus groups or market research
experts. And by involving them in such a fundamental business decision,
he no doubt increased brand loyalty among the winery's core customer
base. One to try out with your own best customers!
Source: Springwise.
Photo by Becky McCray of Aliza Sherman with a bottle of Middle Sister Wine.
New here? Take the Guided Tour. Like what you see? Subscribe.
2 comments:
>Having trouble commenting? Read our comment help.
Use only your real name in the name field. Read our full comment policy.