This pricing strategy is exactly what it sounds like. PWYW business allow buyers to dictate the worth of any given service or product. In some cases, businesses set either minimum prices or suggest a price in order to help guide the buyer. This pricing strategy is attractive to buyers as it grants some power to the consumer.
When PWYW is coupled with a charitable cause, income substantially increases
Car2Go is a car rental company that charges a per-minute rate, with discounted fixed rates for hourly and daily usage. As of May 2015, Car2Go is the largest car-sharing company in the world with over 1,000,000 members.
This strategy is ideal for online businesses and especially those that sell digital products such as applications, software to music and books.
One great example of an SME utilizing this strategy is Adblock.
However, this model is not only confined to online products. It has been implemented in restaurant and healthcare settings as well. This model works well when united with some sort of philanthropic cause or purpose and fulfills a necessary demand (i.e. hunger). One restaurant that has successfully implemented this strategy is One World Everybody Eats at http://www.oneworldeverybodyeats.org/.