Algorithmic AI pricing

[disneysteve]

I do this all the time with Target as do many others. But I hadn’t noticed pricing discrepancies in the past. Still it never bothered me personally if there was a difference. I usually check prices online first anyway when I go to a store where I shop infrequently. In the case of Target and Walmart their store is too big to deal with and I’m usually just picking up a couple of items and not very often. If Amazon has a better price I’ll just order same to be delivered.

We also will look up an item online first because not only does it tell us the price but we can also check in-store availability. If the Target (for example) that we normally go to is out of stock but another nearby location has it we'll go there instead. It saves us the time and hassle of driving around to multiple stores searching for the item.

And we're the same with Amazon. Before we buy most anything we check their price, even if we are literally standing in a store with the item in our hand.

 

[jim584672]

Walmart has different prices on the app verses in store. I bought shoes, in the store they are $35, online they are $14. I asked and they do not match the online prices.

Also Walmart is moving prices in the store depending on the day. So ice cream on a Saturday is $2.97, but weekday it is $1.88.

 

[COcheesehead]

The mortgage industry was doing this for many years. They might still be - who knows.

I think that’s illegal, but not saying it still isn’t done.

 

[audreyh1]

Walmart has different prices on the app verses in store. I bought shoes, in the store they are $35, online they are $14. I asked and they do not match the online prices.

Also Walmart is moving prices in the store depending on the day. So ice cream on a Saturday is $2.97, but weekday it is $1.88.

So in this case I assume they would ship you the shoes instead of you doing a store pickup. In that case it’s a matter of online competition.

 

[audreyh1]

It’s interesting to read about Kroger and Safeway. Here privately held HEB dominates, and we don’t even have other major grocery store chains because HEB is very competitive price-wise plus very high quality. I occasionally use their app to look up a price or availability at home, and location in store. I’ve seen digital coupons offered, but when I selected them always found a paper coupon hanging at the product in store. Prices are still printed and displayed at every product - no electronic price displays. You don’t have to use the app or a store card at checkout.

 

[jim584672]

So in this case I assume they would ship you the shoes instead of you doing a store pickup. In that case it’s a matter of online competition.

I did the store pickup. No fees for that.

 

[aja8888]

It’s interesting to read about Kroger and Safeway. Here privately held HEB dominates, and we don’t even have other major grocery store chains because HEB is very competitive price-wise plus very high quality. I occasionally use their app to look up a price or availability at home, and location in store. I’ve seen digital coupons offered, but when I selected them always found a paper coupon hanging at the product in store. Prices are still printed and displayed at every product - no electronic price displays. You don’t have to use the app or a store card at checkout.

My "Go To" store!

 

[audreyh1]

I did the store pickup. No fees for that.

Well that’s just amazing! Crazy that enormous discrepancy between looking inside the store for shoes versus ordering from same store for pickup.

 

[disneysteve]

Well that’s just amazing! Crazy that enormous discrepancy between looking inside the store for shoes versus ordering from same store for pickup.

That isn't terribly unusual. Online sales and clearances don't mesh with in-store sales and clearances.

 

[disneysteve]

I think that’s illegal, but not saying it still isn’t done.

Absolutely illegal and it was illegal when they got caught doing it.

 

[audreyh1]

That isn't terribly unusual. Online sales and clearances don't mesh with in-store sales and clearances.

I’m just amazed that store pickup has such deep discounts. It’s coming from the same physical store as opposed to being shipped from some warehouse.

 

[folivier]

Cabelas/Basspro is my go to for clothing, shirts especially. Often get an email that a shirt I like is on clearance for anywhere from $10-20 online. But in the stores that same shirt is still full price. I'll sometimes go to the store to try on for sizing and order online.

 

[Venturer]

I print QR codes for my Amazon returns and hand them to the UPS agent. She's not surprised. I guess I'm not the only one doing this.

I do the same when I retun my Amazon things at Kohls. I used the UPS store before they started the Kohls option, but it is a lot simpiler to return at Kohls here because it is closer to my home.

 

[Pluperfect]

I didn't watch the video in the OP because I'm too impatient. But I noticed this news story that has a transcript.

pbs.org/newshour/show/how-online-retailers-are-using-ai-to-adjust-prices-by-mining-your-personal-data

They distinguish between dynamic pricing (uber surge pricing) and surveillance pricing (based on an individual shopper's personal data). I never log in to retail sites until I'm ready to buy, so maybe that means I'm seeing some sort of default price?

 

[earlierme]

Whatever it is called. I don't like it.

Today.

I had one web browser open in which I was logged into my Amazon account and had made a purchase.

I opened another web browser and found something for $35.99 on Amazon. Not logged in.

I copied the item number from browser #2 into the search box on the Amazon website in browser #1.
Price shows as $45.99; $41.99 with a "coupon".

I went ahead and logged into my account on browser #2 and bought that item for $35.99 + tax.

Crazy.

Harder to do on a smartphone which is why I prefer using a PC.

 

[COcheesehead]

Whatever it is called. I don't like it.

Today.

I had one web browser open in which I was logged into my Amazon account and had made a purchase.

I opened another web browser and found something for $35.99 on Amazon. Not logged in.

I copied the item number from browser #2 into the search box on the Amazon website in browser #1.
Price shows as $45.99; $41.99 with a "coupon".

I went ahead and logged into my account on browser #2 and bought that item for $35.99 + tax.

Crazy.

Harder to do on a smartphone which is why I prefer using a PC.

You can have multiple browsers open on a smart phone too. On an iPhone you just hit all tabs and you can see and interact with all your open pages.

 

[Just_Steve]

I am guessing you all dont have an Amazon fresh near you. You do all the work after you add in your Amazon account. You scan your stuff with the cart. The shopping cart also weighs your fruits and veggies. When done you walk through a scanner it automatically charges your card and sends you a recite.

I'm guessing you won't have one near you either soon.

 

[earlierme]

You can have multiple browsers open on a smart phone too. On an iPhone you just hit all tabs and you can see and interact with all your open pages.

I have Android. Not sure how to do that.

I just hate doing shopping on my smartphone.

 

[Koolau]

I have Android. Not sure how to do that.

I just hate doing shopping on my smartphone.

I don't do shopping on my smartphone and I hate shopping on my Mac.

 

[disneysteve]

I don't do shopping on my smartphone and I hate shopping on my Mac.

We all shop online all the time. Phone, desktop, laptop, iPad, whatever.

 

[Koolau]

We all shop online all the time. Phone, desktop, laptop, iPad, whatever.

I shop very little. I need very little. I shop mostly in person. I think I've bought from Amazon about half a dozen times in my life.

I DO shop airline tickets on line. Ya got me there!

 

[disneysteve]

I shop very little. I need very little. I shop mostly in person. I think I've bought from Amazon about half a dozen times in my life.

Other than groceries, we shop primarily online. Target, Walmart, and Amazon are our big three, plus numerous other more specialized retailers. It is so much easier than running around to stores searching for what we want. Plus it's almost always cheaper on Amazon not even counting the savings in time and gas.

 

[Koolau]

Other than groceries, we shop primarily online. Target, Walmart, and Amazon are our big three, plus numerous other more specialized retailers. It is so much easier than running around to stores searching for what we want. Plus it's almost always cheaper on Amazon not even counting the savings in time and gas.

I know I'm old-school and wouldn't complain if I were called a Luddite. But when I "shop," I still like to handle the merchandise.

 

[disneysteve]

I know I'm old-school and wouldn't complain if I were called a Luddite. But when I "shop," I still like to handle the merchandise.

We do for certain things. Clothing for sure. But for hard goods when we know what we want, online is so much more convenient. There are also many things that you really can't get in a store anymore. Just this morning, I ordered a 50 lb/860 sheet pack of packing paper for my ebay business. There's probably some supply warehouse somewhere that I can walk in and get that but who knows where. This way it will be at my door in a couple of days. We also do some things where we order online and pickup in person. Two days ago I ordered shipping boxes from Grainger and picked them up at their local facility this morning. You can't just walk in and buy them. They don't have them all in stock on site but you order online and they ship them to the local spot for pickup.

 

[GrayHare]

There are ways to game algorithmic pricing. I've noticed if I look at an item online but do not purchase, when I revisit that item a few days later, the price is often magically less. Not always but more often than I would otherwise expect.