What’s the price of a bowl of chili? Whatever you want it to be–at least at some Panera Bread cafes in the St. Louis area. The cafes are at the forefront of a trend: letting consumers set their own price.
As reported by ABC News and the Associated Press, other businesses are experimenting with this same model.
Video game downloads are available for whatever buyers want to pay through sales site Humble Bumble. Way back in 2007, rock band Radiohead used the same model to sell their album “In Rainbows.”
Ron Shaich, founder and CEO of the Panera chain, says the purpose of his pricing is partly charitable: If customers pay more than the chili costs Panera to make, the profit subsidizes meals for customers who cannot afford to pay as much. Diners are told upfront, when deciding what to pay, that this is how the system works. Read more aboutt his trend at ABC News