Attracts buyers by eliminating risk
Increases seller transaction volume and profit
Saves time and cuts costs
Provides valuable marketing data
Establishes meaningful reputations
Offers effective promotional opportunities

PostPricing attracts buyers by eliminating risk

Buyers are often reluctant to make purchases because they are not sure if they will get their money’s worth. Everyone has had a few bad purchasing experiences in the past, and bad past experiences lead to apprehension about future purchases. They fear that products will turn out to be overpriced, low quality, and generally not as valuable as expected. These fears make buying uncomfortable and less likely - this is especially the case with shopping online, where buyers feel even more uncertain. Often, reasonable levels of certainty about product values can come only through putting a considerable investment of time into research of the product and seller reputations (that is, if reputation data is available at all). Even then, the value of the product will only be truly known to the buyer after purchasing and using it.

PostPricing eliminates uncertainties and fears of buyers. Since buyers are not obligated to pay a fixed amount for an item and instead pay what they feel is a fair price after receiving the item, buyers will make more purchases. An online marketplace that offers PostPricing is attractively and effectively differentiated from competitors. It will intrigue many buyers who are excited about no-risk purchasing opportunities.

PostPricing increases seller transaction volume and profits

Especially for sellers of products with low marginal cost, charging a single price (higher than many are willing to pay) does not capitalize on a potentially profitable portion of the market. Price differentiation allows sellers to capture greater profits, but it is very hard to accomplish. With PostPricing, since buyers name prices that correspond to their personal values, buyers will price differentiate themselves! A lack of buyer risk combined with the ability to offer lower prices to buyers with lower willingness to pay will result in greatly increased sales and profits.

PostPricing saves time and cuts costs

There are many other inefficient features of transactions under traditional methods that drain value. Before a transaction occurs, both the buyer and seller spend a lot of time researching and discussing the many characteristics of an item that affect its value. Several iterations of negotiations are often required in order to reach an agreement. And even after a transaction is completed, disputes often arise because the buyer feels the product was not as described or had negative features that were not mentioned by the seller. Furthermore, gaining recourse from fraudulent acts is a time consuming and potentially expensive activity.

PostPricing will vastly reduce costs incurred by research, negotiation, and disputes. With prices set by the buyer after s/he has the product, these costly activities are unnecessary.

PostPricing provides valuable marketing data

Sellers invest a lot of money to identify and reach a target market of individuals who have a high value for their product. Offering products through PostPricing is a great avenue for market testing, providing sellers with easy access to insightful information regarding their past transactions. Sellers will be able to identify those who value their products, get explicit feedback regarding their products’ values, and learn what their target market demands. Moreover, buyers will enjoy the interactive nature of the PostPricing market -- each feeling like a valuable consumer reporter.

PostPricing establishes meaningful reputations

For online marketplaces, reputation profiles are key factors in transaction decisions. But online reputation systems are usually mediocre and often wholly inadequate, relying primarily on written feedback. This feedback is insufficient because it is not required for every transaction, it is subjective, and it is often strategically manipulated. For example, people can give themselves good ratings and give competitors bad ratings. It is also common for buyers and sellers to reciprocate the rating given to them ("I'll give you a good rating if you give me a good rating"). But PostPricing transaction data is objective and telling. How much buyers tend to pay for an item is an insightful reflection on the seller, product, and buyer. Across a multitude of transactions, very meaningful reputation trends naturally emerge.

PostPricing offers valuable promotional opportunities

PostPricing reputations are extremely valuable because they give confidence to future transaction partners. For example, consider an unknown seller that has developed a new product: attracting buyers will be difficult because neither the seller nor the product has a reputation. PostPricing offers sellers a great promotional option (as opposed to free trials or money-back guarantees). By allowing buyers to purchase without risk, a seller can quickly build revenues and a reputation. This reputation will say explicitly how much value past buyers have found from a seller's products. A good PostPricing reputation will dramatically increase future sales through any payment method.