General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsShould we be worried about dynamic pricing in retail?
Ever go to tell a family member or a friend about a great deal you found online, but when they go to buy it too, its no longer there? Or maybe it costs way more than you paid for the same thing?
While you got a great deal, what youre experiencing is the phenomenon known as dynamic pricing or raising and lowering prices many times a day, a week or a month to drive sales but still ensure a consistent profit. This is often paired with what is called personalized pricing or cohort pricing where each shopper gets their own price for a product whats my price isnt yours and vice versa. These are marketed to consumers as a benefit deeper discounts just for you but in the end, may actually end up benefiting the retailer at your expense.
One paper from MITs Sloan School says that Implementing DP can improve revenues and profits by between 8% and 25%.
So if everyone is saving, how are retailers making money? In the case of things like groceries, people tend to buy the same items over and over again. Since youre not the only shopper, companies like Amazon sometimes charge one shopper triple what another one pays for the same item.
http://www.ufcw.org/2019/03/18/should-we-be-worried-about-dynamic-pricing-in-retail/
iwillalwayswonderwhy
(2,603 posts)Trying to figure out just the right moment to book a flight is frustrating, but a fact of life.
Sherman A1
(38,958 posts)It seems that is almost like trying to pick the 6 numbers in the power ball.
JI7
(89,262 posts)whatever changes in price will be the same for everyone ?
but what the OP says seems to suggested the prices will be different for individuals.
iwillalwayswonderwhy
(2,603 posts)Its a crap shoot and very seldom do any two people pay the same price for the same ticket. In fact, we are taught to clear our cache when looking at tickets, so that you get the latest pricing.
JI7
(89,262 posts)iwillalwayswonderwhy
(2,603 posts)PoindexterOglethorpe
(25,894 posts)Airlines have taught people to go for the cheapest possible fare. And then they get nailed with all kinds of add ons, such as checked or carry on luggage. Seat selection.
A few days ago I helped a friend book flights from our city, Santa Fe, to California and back. I'm a former airline employee, although I left the business more than 40 years ago, I'm quite comfortable with helping a friend book his flights.
In the process of looking at fares, I was able to point out to him that by going for a slightly higher fare, he would get one free checked suitcase, otherwise costing him $30 per flight, and immediate seat selection, rather than taking his chances at the airport. He was happy to do all this. Oh, and it wound up costing him less than the cheapest possible fare that would have required a $30 bag check fee per flight, and perhaps a surcharge for a seat selection.
I want to repeat: airlines have taught people to go for the cheapest possible fare. Regardless of the consequences. Please rethink that.
My somewhat dirty secret is that the rare times I fly, I book a first class seat. I've learned that if I book several months in advance I can get a fare I'm willing to pay. Sometimes it's a restricted fare, but it's still in first class. Which means I typically get the bypass thing for security, and I absolutely get priority boarding.
Background. For ten years I was an airline agent at National Airport in Washington DC. Travel benefits were truly amazing. Essentially I got to fly for free or nearly free, and was almost always boarded in first class. And even thought the flight attendants always knew I as a non-rev (industry jargon for non revenue passenger, meaning we weren't paying a real fare) I was always treated very well, always got my first choice of meal, always got LOTS of alcohol. I was spoiled, and I knew it at the time.
So let's gloss over a few decades. I left the business, got married, had kids, they grew up, I got divorced and moved to another part of the country. Ever since 9/11 I've had no patience with the TSA. For one thing, I originally started before any security whatsoever, understand why we got it, and understand even more clearly that post 9/11 security is mostly theater.
Which is part of why I book first class. It enables me to bypass most of the crap.
I realize that even booked in advance, a relatively cheap first class fare might well be more than many of you are willing to pay. I get that. But look harder at the cost of a plane ticket.
More to the point, whenever you are booking a flight on line, please look beyond the cheapest possible fare. Double check things like cost of seat selection, cost of checking a bag. You might discover that a slightly higher fare results in being able to choose your seat when you book the flight, and then not having a checked bag fee, means that the final cost is actually less than the cheapest possible fare.
iwillalwayswonderwhy
(2,603 posts)I live in England and fly back home to Orlando once a year. What I usually do is have a set price in my head Im willing to pay and Im flexible on days because Im retired. When I find my price, I book it.
DFW
(54,436 posts)I have to run to the USA next month, and I knew approximately when I was going, but couldn't nail the dates down until recently. The air fare for the flights I was looking at rose from the time I started in February from 1800 to about 4500 last week. Because I had a lot of miles, and Air France offers several cash/miles combinations (I am platinum for life with them), I was able to get away with a decent fare, but they definitely fluctuate.
My son is getting married in April 2020 so Ill try to book our flight (Philly to Ft. Lauderdale) soon.
DFW
(54,436 posts)At least as far as intercontinental flights go, it is almost impossible to book a flight before the season schedule has been decided. What you can do (I assume Delta is your main carrier for that route?) is request the airline(s) let you know when their Spring 2020 schedule is coming out, and then pounce as soon as it is set. Be aware that flights get changed and moved around after a timetable is set, but they will honor your fare, because they are the ones who are doing the rebooking, not you. An airline's website might also indicate to you how far in advance you can book. If you find you can't book further in advance than a certain date, it is because they haven't decided on a schedule yet. Some airlines keep some flights in the same slot for more than a season, but that is nothing you can depend on.
Sherman A1
(38,958 posts)Thank You for sharing this information.
Freddie
(9,273 posts)Shopping for household things (I think on Wayfair) I would favorite something I liked and when I returned to the item the next day, the price went up. Either hoping you wont notice or (probably) counting on you wanting the product so much youll pay more. Nope.
Sherman A1
(38,958 posts)I was looking on the Wayfair site recently for a new desk/office chair and gosh I seem to be getting just about 6 emails per day from them with the latest and greatest Best Deal. I concluded when looking over their line that they were higher than I was willing to go and ended up buying from Office Depot using their coupon that comes in the mail which added up to a decent savings.
Amazon does the same thing with their AI coming up with all sorts of suggestions for me. Granted both my examples do not reference the adjustable pricing of the article, but I have no doubt that it is part of the mix.
msongs
(67,438 posts)displacedtexan
(15,696 posts)I'd say 7-8 times out of 10. And there's no way to complain about it. The first few times, the price difference was a dollar or two. No biggie. But time after time after time, the same thing happened. And sometimes the price difference is only based on item size or color.
About the third time this happened, I stopped buying any item that pulled this stunt. Now I know what to call it. Thanks!
cbdo2007
(9,213 posts)We have 3 grocery stores we shop at, each one has different items that are a good deal at that store, and they rotate sales obviously...so we go to a different one each week, depending on who has the sales, and stock up for 3 weeks on stuff that is a good deal at one store but bad at the other stores.
Luckily my wife stays home with our kids so she can keep track of it all and of all of the coupons and everything, and she could probably write an entire dissertation on dynamic pricing and why some people are paying $6.99 for deodorant and others are paying $1.99. The whole retail industry is seriously messed up.