Different Pricing Strategy
2 Comments Published by Frank Lane June 19th, 2007 in Alignment, DifferentiationI thought I had heard of every possible pricing strategy in the Universe, but today a friend sent an email about a 10 day course in meditation that she just returned from.
There is no charge for attending a 10 day session for Vipassana Meditation, not even for accomodations and food. Rather all costs are covered by donations of people who have already completed the course and donate freely so that others can enjoy the same benefits they themselves did. This is like proceeding freely through a toll gate, then paying for the car behind you.
Strategically, this sends me the message that the course is really beneficial and produces raving fans, if Zen enthusiasts can be expected to rave. It must also work for them because there are centers all over the world, including 8 in North America.
This appears to be a brilliant way to use pricing to reinforce a Brand’s fundamentals – what it is, what it is not.
What an incredible way to convey honesty, credibility and customer satisfaction all at once. Agree, this strategy would not always be a good fit, but it does inherently make sense in connection with this offering.
If a collections issue were to emerge, a change in pricing strategy or how it is executed could be made at that time.
Qt3G91 YMMD with that answer! TX