Back in October, 2007, the band Radiohead launched a new CD and made the album only available to buy online. In exchange for the CD, they asked consumers to go ahead pay what they wanted for the CD. No set price. People could just pay what they wanted. In response, the band sold 1.75 million CDs in the UK (another 1.25 million in the US) and sold millions of plays on various pay sites. Retail sales of their boxed set increased, as did the number of of concert tickets they sold.
And in the process, a new retail pricing model began. Provide something of value, and ask people to pay what they feel is the real value of it.
Recently, Panera bread launched a similar model where people could order their meals, cashiers tell the customers the "suggested" price -- and people then pay what they want. After the first trial period, about 70% of people agreed to pay the suggested price, 15% paid less, and about 15% paid more. There were, of course, some free-loaders, but there were also a lot of people willing to pay $20 for a cup of coffee.
Interestingly, as people have experimented with the idea, and done some testing, it turns out that people are more likely to pay more if they are told that "excess" money is going to help a charity vs going to line some business owner's profits. When a charity was involved, the casual freeloaders balked at the idea of paying nothing because it was more likely to reflect badly on them, yet customers with a desire for the priduct and the cause were willing to pay for both.
Which leads me to ask the question, can shelters and rescues succeed with a pay what you wish pricing model? As charities (in most cases) themselves, they have a built in charity to them.
So let's say the "suggested" adoption fee is $50. What if we went to pay-what-you wish pricing? Would some people take free adoptions? Most likely -- and honestly, if they're good homes, that's probably ok. And on the flip side, if someone with some money came in to adopt, would they be willing to leave $100 with the extra to "help out" other animals? Most likely, yes.
I think it's interesting that many mainstream businesses have ventured into the pay-what-you wish pricing...and I'm wondering if anyone out there of a shelter that has tried this at all and what the results were from it. It sure seems like a great way to get a lot of publicity, overcome price barriers for adoptions, generate a lot of good will in the community -- and maybe get some high-dollar donations for adoptions in the process.
And, most importantly, find a lot of good homes for homeless animals -- which is the true end goal.
For more: Are "pay what you want" animal adoptions a good idea? - from Change.org
I love this idea!
Posted by: YesBiscuit! | July 20, 2010 at 02:49 PM
I definitely think this could work. Mayzie's adoption fee was $125 but we gave the rescue $150 (although they weren't on the "pay as you wish" plan) just because I know how much it costs to rescue...and it made me feel good to do so. :-)
Posted by: Amber | July 20, 2010 at 04:14 PM
I felt my dog was worth more than I paid when I adopted him. I have made additional donations over the years to that organization as a thank you for giving him a space in their organization and for making his adoption fee so affordable.
Posted by: Lori | July 20, 2010 at 06:00 PM
The Nevada Humane Society did a "pick your price" adoption event in December. They did 112 adoptions, only two were free, many paid over the normal fee, and it averaged $31.50 per adoption, higher than the $25 promotion they normally would have run.
Posted by: Nathan Winograd | July 20, 2010 at 07:28 PM
Great post! You truly have the pulse of the shelter/rescue world...
We have thought about this idea at our local shelter and I oftentimes wondered what the result would be, suspecting it would work out to our advantage. I hope more shelters/rescues post their results...
Posted by: Carianne | July 21, 2010 at 08:23 AM
This is de facto how it works out for many smaller breed rescue groups.
If a great home really can't manage the suggested adoption fee, our breed rescue works with them. Many adopters contribute more -- if not at the time of adoption, then later on.
Providing lifetime-and-beyond support for adopters seems to translate into regular giving, though that's not the reason we do it.
Posted by: H Houlahan | July 21, 2010 at 11:50 AM
In Seattle, I know a wonderful lady who adopts out cats - she works with people I have noticed - like if a cat is not especially sociable - she'll give a discount to the right person - Snarley Snow Princess comes to mind, who only wanted to be up high on a perch and hiss - Snow Princess not only got a home but got a great home.
Posted by: mary frances | July 21, 2010 at 04:29 PM
Meant to say so I will add - Snow Princess had been found in sub-zero temp abandoned with portions of her ears lost due to frost - she had a reason to hiss -
Posted by: mary frances | July 22, 2010 at 05:35 PM
I've been hearing of Seniors who are not able to reclaim their pets who stray due to money. This would be a great help to them. I was thinking a foundation to help Seniors keep their pets would be a great idea. Not just financial distressed, but help with grooming, walking, vet visits, wellness checks, etc. My uncle had two dogs, had a great deal of trouble caring for them his last years in a wheelchair. I helped, hired caregivers to help, such a group would have been a great assistance. I have the dogs now and they are happy.
Posted by: Linda | July 26, 2010 at 07:13 PM
Many people can't pay an amount in a lump sum, but would still make good pet owners. As long as everyone is being judged the way, it sounds like a good idea to me. Our local shelters sometimes give away cats for free so they don't kill them and most people do leave a donation.
Posted by: Thetroubleisme.wordpress.com | July 28, 2010 at 11:22 AM