No More Prices? All About the Pay-What-You-Want Revolution

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Pay-What-You-WantPrice tags—they’re a classic case of can’t live with ‘em, can’t live without ‘em.

Often, the only thing keeping us from designer handbags and sleek new phones is the number at the register. But without prices, our economy would grind to a halt, right? The answer might surprise you.

From restaurants to record labels, services are tossing out price tags and instead asking customers, “How much do you want to pay?” It’s a revolutionary new system that could either bring out the best in human nature—or bankrupt businesses. So what will it be?

Music for Free?

Back in 2007, Radiohead caused quite a stir when they announced that their seventh album wasn’t going to be immediately available in stores. Rather, In Rainbows could be downloaded online for whatever amount the customer felt the album was worth. Music industry bigwigs reeled at the idea, but they were in for a shock: In Rainbows topped the charts, selling 1.2 million copies in just the first day. Even though fans paid less than they would have for a full-priced album—the average customer paid between $2 and $8—Radiohead ended up selling a greater number of albums and bringing in more money than they did with previous album releases.

Since Radiohead, many other artists, such as Nine Inch Nails, have adopted the band’s marketing strategy, with varying degrees of success. Lesser-known singer Saul Williams released his album and was disappointed when a mere 18.3% of people paid to download it (the rest took it for free). But what Williams lost in sales revenue, he gained in publicity: “Saul’s music is in more people’s iPods than ever before,” says music producer Trent Reznor.

PWYW Worldwide

Pay-what-you-want (PWYW) has swept the globe as more industries give it a try. It’s popular in the yoga community (which has always felt conflicted about charging high prices). Yoga to the People in New York, Washington and California is just one chain of studios using the novelty payment system successfully. The classes are crowded, but at least they are affordable.

But the most enthusiastic proponent of this honor code is by far the food industry. Step into the Lentil as Anything chain stores in Australia or One World Everybody Eats in Salt Lake City, and you’ll get delicious food with the option of placing money into a donation box. While there are customers who choose to walk away with free meals, many will actually pay extra. “Our customers were so enthusiastic that they were paying more than their fair share,” says Natalie Deewan, a co-owner of Der Wiener Deewan in Vienna, Austria. Even Panera Bread has opened a pay-what-you-want location near St. Louis, where customers also have the option of volunteering at the restaurant in exchange for soups and salads.

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Why it makes you look smartRead ON

PWYW and Feel-Good Profit

So how does the pay-what-you-want model actually lead to a profit? The idea plays on our sense of fairness, so we’re willing to pay more when doing so makes us feel more altruistic. For example, charity is a key part of the St. Louis Panera Bread’s success. The restaurant advertises itself as a non-profit organization, and excess revenues, as well as leftover food, are donated to the needy. Most customers recognize a good cause, forking over more than the retail price for their rations: One customer even paid $500 for a meal. All of this has allowed Panera to donate millions of dollars to charity and open two more similar stores in Dearborn, M.I. and Portland, O.R., with more on the way.

Science validates the PWYW  effect. A study conducted by Ayelet Gneezy, a marketing professor at the University of California, San Diego, found that people are willing to pay the most when they can pay what they want and have some of their money go to charity. In the study, Gneezy offered amusement park patrons four options for paying for photos of themselves on the rides: PWYW, a flat rate, a flat rate with a portion going to charity and PWYW with a portion going to charity. The last option generated the most profits: the theme park stood to make $600,000 in profits if it continued the strategy, even after half of the proceeds were donated to charity.

Coming to a Cash Register Near You?

Will donation boxes soon replace cash registers? Probably not. We don’t see Apple letting you set your price for a Macbook anytime soon. But it’s certainly an interesting idea. Got an Etsy shop? Or hosting a bake sale? You can try the PWYW strategy yourself. You never know how much people will pay for a cupcake when given the choice.

Read On …

Your favorite artists may still charge full price for their albums, but check out these music websites that won’t break the bank.

Do you find yourself spending more than you planned every time you eat out? Restaurants have tricks to get you to pay more, but here’s how to outsmart them.

Looking for more ways to give? Check out these savvy charity ideas.

Image credit: samantha celera/Flickr

  • http://senseofcents.blogspot.com/ Michelle

    I live near the pay what you want Bread Co in St. Louis and it’s an OK idea.  The Breadco is in a really good and rich neighborhood, so of course everyone there is going to pay what it’s worth or more, so that they don’t look cheap in front of their colleagues.

  • http://emtguide.wordpress.com/ TopThat

    I live near One World Spokane a pay what you want restaurant that attracts people from a wide range of financial backgrounds http://www.oneworldspokane.com/

  • http://neatfreakwannabe.blogspot.com Jenna

    Interesting concept.  It won’t work for everything, but there would be certain industries or markets where it would do better than others.  In the wake of the recent recession and in the age of extreme couponing, not everyone would be willing or able to pay full price or more.

    I can definitely see that a charity component would entice people to pay more.  There is probably a guilt-factor playing into that; if you pay less, then less is also going toward charity, as oppose to just paying less to a for-profit business.

    • Sunnyblue

      I own a restaurant and I feel like a non-profit just paying my staff a decent hourly wage (minimum wage is not a living wage!).  So I get upset when people suggest that it’s o.k. to pay less for a “for profit” business.  Lawyers and hedge fund managers don’t get squeezed out of their last dime. Restaurants are frequently the first place people cut out of their budgets.  I am going to try the PWYW strategy as it is consistent with my employment philosophy ( I also hire people trying to reenter the work force after incarceration and try to coach a lot of young people in transition.)  I serve a quality all natural product but have to compete with Subway for people’s lunch budget.  This might just help to compensate for the un-level playing field!  I’m not so jaded to think some people will pay more, and most will pay fairly only when shamed into it!  People want to help.  Let them vote with their dollars.

      • http://www.facebook.com/profile.php?id=3900303 Daniel Rosensweig

        Sunnyblue, I love your business philosophy.  I like that you care about your employees and everyone involved.  Not all businesses are like that, though, and I particularly am doubtful when dealing with big national chains, where the decision-making is so far removed from the people it affects.  What restaurant do you run, and where?  If you’re moderately near me in Boston, I would feel good about spending my money there.

  • http://neatfreakwannabe.blogspot.com Jenna

    Interesting concept.  It won’t work for everything, but there would be certain industries or markets where it would do better than others.  In the wake of the recent recession and in the age of extreme couponing, not everyone would be willing or able to pay full price or more.

    I can definitely see that a charity component would entice people to pay more.  There is probably a guilt-factor playing into that; if you pay less, then less is also going toward charity, as oppose to just paying less to a for-profit business.

  • http://www.smartmouthblog.com Nicole Longstreath

    Ha! My yoga studio hasn’t exactly caught on to PWYW and has no problem charging me $100 a month!

    But, seriously – I like this idea and I think we have the Millenials to thank. They are chided by their Boomer counterparts for being spoiled and entitled, but I think they simply aren’t afraid to ask for whatever they want.

    Go Millenials!

    http://www.smartmouthblog.com

  • Jreedy

    I was actually offended when I was shopping for a Home inspection, and the potential vendor asked me what I though I should pay for an inspection.  I felt like he was saying to me, how much do you have to spend, and if its enough I will sell you my service.  If instead he had set I will beat anyone else’s offer by $25, he would have had a sale.

    • http://senseofcents.blogspot.com/ Michelle

      Wow, I can’t believe the vendor asked that.

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • http://www.facebook.com/profile.php?id=36200122 Amy Krieg

    I have heard of a yoga where I live in Las Vegas, that is the same pay what you want idea.  But I am not sure if any excess profits go to a charity or just stay with the yoga studio.  I haven’t tried it out, but want too.  

    If anyone has read the book “Freakonomics” they really tease this idea out as to why most people will feel compelled to pay.  In the book they talk about a bagel company that routinely drops off bagels and a box for people to pay for their bagels based entirely on the honor system.  Turns out a high rate of people will pay, which is awesome.  Using other studies they find that the main driving factor for people to pay likely is being seen as being moral, often not the internal goal of sticking to your morals.  The thing about the yoga studio is that they have a “suggested minimum” donation of $12/class, which is about as expensive as every other yoga studio in town and more than I think some yoga classes (ie those with poorly trained instructors) are worth.  When I think about paying less than the suggested minimum I would feel guilty or shame, which is a more powerful incentive to pay more.  It is interesting how far social pressures go to force us to pay in these types of situations, they are sometimes seen as more powerful incentive then anything else.  

    On a side note I visited a yoga studio that is trying to keep prices affordable and they have an awesome idea.  They have a tip box for all of their instructors, because obviously if classes are cheap then they can’t pay their instructors well and this is a great way to supplement their income (and probably using social pressure along the way to get clients to pay the instructors). 

  • Delawhere?

    This will work in areas of affluence, or at least middle class.  However, putting restaurants or businesses like this in very low income areas would lead to financial ruin.  I can tell you right now that if you put a ‘pay what you want’ store of any kind in Wilmington, DE the welfare warriors would clean you out in no time.  Places like this can only survive in places where people have disposable income and aren’t stretching to pay bills/buy crack.

    • Evette2007

      Even people who have money are cheap. I don’t think it will work out anywhere. Also, the rich (some) are on crack too along with other drugs they just have the money to support their habits. Just because someone can’t pay their bills or on welfare doesn’t mean they are all on drugs.

  • Delawhere?

    This will work in areas of affluence, or at least middle class.  However, putting restaurants or businesses like this in very low income areas would lead to financial ruin.  I can tell you right now that if you put a ‘pay what you want’ store of any kind in Wilmington, DE the welfare warriors would clean you out in no time.  Places like this can only survive in places where people have disposable income and aren’t stretching to pay bills/buy crack.