FairPay – Series I
If for you, Mumbai is all about the magical kingdom of movies, then the locals will point you to the colourful suburb of Bandra. Here lives the Badashah of Bollywood, Shahrukh Khan. You have your picture taken in front of his house with the smiling security guard (“Saheb ghar pe nahi hai!”). Then imagine that you and a friend go to the movie theatre to watch the latest offering by the King and after you have watched the movie, the ticket seller tells you both , “We are trying out a new system of payment. Ticket normally costs Rs.700/-”. After you see the movie we will ask you, how much are you willing to pay? After the movie you feel Rs.400/- is paisa wasool. The ticket seller tries to convince you and your friend for Rs.600/-. You are free to set the price as you see fit and finally decide on Rs.500/-. You explain why you thought 600 was too much and happily pay what you think is ‘fair’, the 500. Bollywood gets invaluable feedback on what the movie was really worth and more importantly, what the audience wants to watch in the future. Suppose your friend pays only Rs.300/-. and has no good reason (like being upset by a noisy person in the next seat) the next time she goes to watch a movie, the ticket seller looks at her and says -“Fixed Price of Rs.700/-. Aap ke liye special!” (Of course for a new customer, they might say, we will let it go this once, but not the next time.)
This in short, is an example of ‘Fair Pay What You Want’, or simply ‘FairPay’. A brainchild of Richard. R.Reisman, he began its development in 2010 as a new approach to pricing in the digital world. FairPay is an improvement on Pay What You Want (PWYW) pricing. While PWYW has gained some success of late, it is generally considered naively idealistic and applicable only for special situations. Fair Pay reinvents this by adding Internet tracking of the actual FairPay prices as a tool to restructure digital offerings including transaction and pricing architecture and to engage in a deep discussion with the customer about the value of the product or service.
ennovent is at an enviable position as the first commercial venture in the world to undertake Fair Pay pricing system. ennovent has tweaked this system to suit their business model by using it for its Request Service in which the seeker raises a request and if solved through the ennovent Global Network, pays ennovent a connection fee. These are very exciting times at ennovent but more about that in my next article.
Reisman views Fair Pay as a balancing tool. The buyer gets to pay whatever he thinks fair for each single transaction. This is FairPay transaction. If the seller agrees that price was fair (given the situation and any explanations), the seller makes subsequent offers to that buyer. If, after the service is rendered, the buyer pays an amount that the seller deems unfair, the seller can choose to limit the buyer’s exposure to their company from then on. So the buyer needs to play fair, to safeguard their future interests. The seller needs to convince the buyer about the price they are expecting. This opens up a channel for dialogue between the two and the beginning of a relationship. This is a FairPay relationship.
Once the buyer builds up a reputation as a – providing fair compensation for value received, sellers may allow them to regularly pay somewhat lower than standard market prices. So the buyer becomes eligible for privileges and becomes a member of FairPay Zone or FairPay Club. If the buyer’s FairPay reputation suffers – the rating slips. So we have a FairPay Reputation database which tracks this buyer behaviour based on usage, price sensitivity, value perception and willingness to pay. Seller gets complete information to be able to customise an offering at the right price for the right customer.
I think I just explained what market Nirvana looks like.
In my next article, we will look at exciting ways in which ennovent plans to use Fair Pay and how it will revolutionise globally, the way entrepreneurs, investors and experts in the social sector work.
To know more about ennovent, please visit www.ennovent.com
To learn more about FairPay, please visit www.fairpayzone.com
Anuradha is an Electronics Engineer with over 6 years of IT experience. She loves looking at how latest technological trends affect the social sector. Connect with Anuradha on the ennovent network, here.