As I mentioned in my “A Look Ahead” post, I was inspired by the pricing model of The Mad Optimist, a startup soap and body care company based in Bloomington, Illinois.
Their “Choose Your Price” model is an interesting way of balancing the needs of their audience. When asked about the unusual model, the founders discussed their desire to help people who need specialty soaps.
Some of those people were more affluent and felt the $10 bar of soap should be $16 or $17 – probably for bragging purposes.
Others, those in less affluent parts of the country, would be priced out at $17 per bar of soap – even if the product’s ingredients would alleviate their skin ailments.
To solve the “problem”, The Mad Optimist decided upon a “Choose Your Price” model on their website.
I was struck by how similar their problem is to what I face within my own consulting business.
My larger clients almost dismiss consultants without a high hourly rate.
I also have startup, bootstrapped clients who are just scratching enough from their budding business to not go bankrupt.
The latter would be easily priced out of the market by the rate demanded by the former.
Does this mean those bootstrappers are less important to me personally? Not at all. In fact, I am more passionate about them! The potential to impact more change is far greater.
In 2020, I am going to explore a Pay-What-You-Want model for my consulting services. It will be open to a limited audience – unless it isn’t.
It is an experiment.
Are you interested?
Drop me a note.
On the Flip Side
Are you selling a product that could benefit from this? Why or why not? I can think of 1000 objections (and possibly contradictions) to not do this. But I can think of far more businesses who could benefit.
Leave a comment as to why or why not.