This is a very interesting report about stores doing variable pricing of their groceries. A group called More Perfect Union along with Consumer Reports report that item prices can vary dependent on the profile of the shopper. This occurs both with the large chains including Walmart and Amazon and also by smaller grocery chains. The stores use algorithmic or “surveillance” pricing. Each persons profile is based on various factors including a person’s purchase history, shopping frequency and coupon/loyalty program usage.
This process is likely to become more prevalent as AI technology improves.
I don’t get this. Like Clark, I look at the price tag on an item and decide if I want it or not. The price doesn’t change because I’M buying it. One thing Clark has said and I agree, don’t assume because you’re buying a larger package of something that you are paying less per ounce. I bought some laundry detergent the other day the smaller container was Cheaper per ounce than the larger one!
Years ago when Instacart came out, I started to put in an order and I noticed things priced higher than I paid in store, so I canceled the order and haven’t used them since. They can’t implement this in the store until they put in the electronic price tags. So just shop in stores that don’t use the electronic price tags ( I haven’t seen any yet here). I am more worried about airlines and online shopping implementing this. AI Is Changing How Airlines Are Pricing Flights—Here's What Travelers Should Know, According to an Expert
I believe this is talking about an online purchase. The price can change based upon you buying it because the price you see online is not necessarily the same as others see on the same website.
On a store shelf, everyone sees the same price.
However, I have seen cases where the same product, same ingredients might be sold in different departments of a store with different prices. The UPC is different but the company, count, ingredients were exactly the same but the ‘usage’ differed. This was a generic medicine OTC at Walmart and the product labeled as Migraine Relief and elsewhere for headaches. The contents, Acetaminophen, aspirin and caffeine in the same tablet form factor, same ingredients, same amount of each, same number of pills but different UPC and different price. Now it could be a rebranding and price change at the same time, but I did not check expiration dates. I just bought the cheapest.
I think airlines, and probably Amazon for that matter, have used cookies to “watch” you peruse flight plans or products and use that as a means of anchoring prices. I’ve heard people switching computers and getting different prices on flight plans from an airline even though all the itinerary and particulars stayed the same. Of course, surge pricing can be applied on a dime I bet, but still I wouldn’t put it past airlines to try and create a sense of urgency by raising prices in an instant to goad the consumer to impulse buy and make them think they better buy now instead of wait.
The OP was talking about groceries so (of course) I assumed he meant in the grocery store! That’s my “baby boomer” moment. I buy a lot of things online, but not groceries!
For years Hotels have used “dynamic” pricing. Years ago I was looking for a room and noticed upon returning to a website that the price had gone up. In just a few minutes. I had read about them tracking you through cookies. So I opened another browser that I don’t normally use and the price was lower! Of course I booked my room there.
Whole Foods has implemented electronic sale signs on its shelves. Push a button and all the signs get updated with that week’s sale prices. I bet Amazon will save $$$ on labor in the long run with this. Not sure what kind of batteries they use but they are mice type in font size though and can be difficult to read. LCD setups if I am correct.
In my area all stores are using paper labels. I do not look forward to electronic labels, I do not like the idea they can change prices minute to minute.
Airlines were the first industry that developed “Dynamic pricing”. Now with all the fancy computers DP has spread to many other industries. Hotels, car rentals, and now Groceries? We do have some power. If you think somethings too expensive keep searching. I’m cheap, when I’m looking for a certain motorcycle part I’ll look for quite a while to find the lowest price.
I think at one time since AA owned SABRE and TWA owned PARS and some folks thought that these systems allowed airlines to collude on pricing.
I won’t grocery shop online so I can avoid the grocery pricing algorithms. I will stilll used my loyalty card for points, but I won’t pay more than what is listed on the shelf. The only place I see myself vulnerable might be on any "coupons” issued in their app. They recently started an app that offers coupons on certain items. I think the algorithm might not offer me all the “available” coupons, but since the app is so new, I don’t see that happening very soon. In fact, as a marketing strategy, they will have a sale on an item with a highlighted tag saying you could get if for even less if you use the app.
There are some things that work against it though…I was buying shredded cheese. They had a coupon on the app….I saw “Sargento” and clicked it. At checkout, I didn’t get the lower price. There were two coupons…one for cubes and one for shredded. both were .50 cents off. I had “clipped” the one for cubed. They wouldn’t adjust it at the customer service desk, and I wasn’t in a hurry, so I pulled the cheese out of the bag and asked for a refund. they issued it to me. Then I clipped the “shredded” coupon and said I’d like to buy them back now. I wasted their time for something where the could have just given me the 50 cents. I also said that if they were both for the same amount, why not just issue one coupon for Sargento cheese, regardless of the type. Ah…technology.
Did you ever know anybody in revenue management