Anchored pay-what-you-want pricing lifts average spend

The Surprising Maths of Open Pricing

Kim, Natter, and Spann's research on pay-what-you-want pricing in restaurant settings found that customers paid more than the minimum viable amount in almost all cases - and that the presence of a suggested or typical price significantly anchored payments upward. When a "most customers choose £X" reference was shown, payments clustered at or above that amount.

The mechanism is dual: reciprocity (the customer feels grateful and wants to support the business) and social norm (the anchor signals what is socially appropriate). Together, these produce average payments that exceed what a fixed price might generate in comparable contexts, because buyers who would have resisted a fixed price will voluntarily pay more under open pricing.

Where It Works in Ecommerce

This mechanic works best for digital products (templates, guides, courses, patterns), experiences (donation-supported access), and tip-or-contribution models for services. It is not well-suited to physical products where COGS makes a floor price necessary - though a slider with a minimum floor can work.

For Shopify, a price slider or name-your-price mechanic is achievable through apps or custom development. The friction of implementation is the "Hard" rating - the concept is straightforward, but the mechanics require non-standard checkout handling.

Setting the Anchor

The anchor should be the price you would charge if it were fixed. Show it as "suggested" or "most popular." Make it visually prominent as the default slider position. Customers who want to pay more will move it up; very few will move it below the anchor without good reason.

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Research: Kim, Natter & Spann (2009), Journal of Marketing - pay what you want pricing mechanisms.