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FairPay  ̶  Customer Dialogs about Value
 

A flexible new architecture for buyer-seller relationships.

  • Enables better pricing, centered on the customer

  • Shifts the buyer-seller value exchange from transactional to relational

  • Builds deep buyer-seller relationships centered on customer empowerment, experience, and dialog

  • Operates as an adaptive value discovery engine that sets prices based on individual value perceptions

FairPay offers:

  • Sustainable pricing  ̶  better than "freemium"

  • Higher customer satisfaction

  • Increased market efficiency for both buyers and sellers

  • Greater market penetration and more profit


FairPay exploits Internet feedback and reputation tracking in a subscription, or other ongoing sales relationship.
It is especially suited to digital content, products, and services
.


FairPay is a participative pricing process that combines
•  the user empowerment of pay-what-you-want pricing, with
•  feedback, accountability, and seller control of future offers
to make it fair to both buyers and sellers in a continuing relationship.
 

Whatever price the seller set is wrong!
...wrong for some of the people all of the time.
...wrong for all of the people some of the time.
FairPay changes that with a new twist of the invisible hand
...one based on total realized value to each buyer.

 

FairPay works over a relationship, through a very simple balancing dynamic:

1. Selectively empower the buyer to unilaterally set whatever value-based price the buyer considers fair -- after the sale, when the real value is experienced and known.

2. Track that buyer value-based price and determine whether the seller agrees that is fair, and use that information to empower the seller to decide whether to make further offers of that kind to that buyer in the future. 
(Unfair buyers are downgraded to lesser offers or fixed-price.)

3. Continue this balancing in future transactions, to build a relationship based on fair value exchange, that adapts and evolves over time.

This gives buyers a strong incentive to price fairly -- and enables sellers to limit their future exposure to those who do not.

...more on How FairPay works

 

Customers  -- Pay only what seems fair to you (based on your "Value2Me"):

  • Pay what you want for products or services -- after you try them

  • Make every purchase on a trial basis--so you can always be sure to get your personal fair value for your money

  • Agree to set your price fairly--in your judgment--and explain why you think it is fair

  • Do that as long as you can convince the seller that you are being fair

Businesses  -- Get the most revenue from the most customers by continuously learning what each one values:

  • Engage in real dialog with each of your customers and listen to the personalized "Value2Me" they perceive to get from your products or services

  • Make a trial offer to every potential customer who sees potential value.

  • Let your customers self-select into segments (based on usage, value perception, willingness and ability to pay, ...)

  • Limit your risk from those trial offers by tracking the results (fairness) for each buyer, and limiting future offers if you judge that buyer to not pay fairly

  • Continue to make every offer a trial...
    ...as long as each buyer continues paying fairly--in your judgment

Delight your customers: give them what they really want, at a price they really think fair.  Shift the conversation from price to value.
Empower them to engage with you

Pay What You Want has been shown to be profitable for special offers. 
...With FairPay
(short for Fair Pay What You Want), every offer is a special offer.

The strategic value of FairPay to business

FairPay is a pricing discovery and management process that provides
 More effective pricing -- based on "Value2Me" (as perceived by each customer)
 Greater customer reach, delight, and loyalty
 The ultimate in market research:
         transaction-level value perception and behavior detail
              ...for every transaction by every buyer
 Fine-grained buyer self-segmentation
to create a new framework for win-win value exchange. FairPay lets you outsource your pricing to your customers -- they know better than you what perceived value you provide them.

Adding to the business opportunity, FairPay tracking processes build a Pricing Fairness Reputation Database on customers (much like a credit rating database) that becomes a valuable asset. When applied in a cross-vendor platform service, this database offers an added first-mover advantage.

The invisible hand meets the cloud
...A new economics for the Internet age

The Internet “cloud,” and the networked economy it enables, has opened the door to a historic leap in human culture, but that leap is hobbled by the need for a new economics--one that can deal with the abundance of value that this new economy creates.

  • The very structure of our transactions, and the “invisible hand” that guides them, is unsuited to an economy in which digital goods can be replicated and delivered in unlimited quantity at negligible cost. With unlimited supply, prices are driven to zero, and the invisible hand of our established pricing mechanisms no longer works.

  • We need to turn the invisible hand to guide an efficient and fair exchange of value between producers and consumers of digital culture.

  • We must exploit new information on actual value to each buyer, as it emerges out of each transaction and use, in the context of ongoing buyer-seller relationships.

Radical, but practical and prudent...

FairPay is radical in offering a degree of buyer participation in price setting that may seem foolhardy, but is balanced by mechanisms for sellers to manage risk and predictability. 

FairPay is also prudent in being:

  • Usable in harmony with conventional pricing schemes (pay walls, freemium, etc.), as a complement, not a complete replacement.

  • Deployable in limited/niche segments and phases, to gain value and experience, without any risk to established revenue streams.

more on How FairPay works...

Seeing the full power of FairPay, and how it works, takes a step outside conventional thinking...
-- please contact us for free consultation on how it can work for your business:  fairpay@teleshuttle.com
     
Harvard Business Review Blog
on FairPay Strategy
Presentation on FairPay
at MIT Enterprise Forum of NYC

...Slides and video now online
Press
HBR Blog on FairPay
Analyst on FairPay: "intriguingly powerful"

Blog:  The  FairPay Zone
...Current dialog and comments on FairPay and its applications

How Does FairPay Work?
Seeing the full power of FairPay, and how it works, takes a step outside conventional thinking...
-- please contact us for free consultation on how it can work for your business:  fairpay@teleshuttle.com





Diagrams and process explanation
 
Why would anyone pay
if they do not have to?
...and other FAQs

The answer is simple:  Buyers who do not pay
will not get further offers
. ...more

The Long Tail of Pricing: 
...Capturing Added Revenue and Profit


...A blog post explains this:  T
he green area shows the revenue under standard pricing -- The red and amber areas show potential revenue that is lost under standard pricing, but can be realized with FairPay.

A New Twist on The Invisible Hand
 ...to span ongoing relationships

...A blog post explains this:  FaiPay turns the invisible hand on its side -- to optimize the balance of supply and demand in terms of prices over time, with respect to individual customers.

FairPay Application/Market Segments
...Overview of major market segments in which the FairPay revenue model is readily applicable

A Sample FairPay Offer
...Explaining an offer, plus some buyer FAQs

Resource Guide to Pricing
...Annotated links and references on Pricing, Pay What You Want, and other related background
 

The  FairPay Zone  Blog -- Selected posts
Interview on FairPay
FairPay (as introduced in 2010):
The Future of a Radical Pricing Process

...A fuller introduction, with examples
 
 

Richard Reisman -- Bio
About Teleshuttle

Teleshuttle offers free consults on FairPay services
to potential business users and researchers.

Contact Information

Richard R. Reisman, President, Teleshuttle Corporation
20 East 9th Street, New York, NY 10003
(212)-673-0225
e-mail: fairpay@teleshuttle.com

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