Dynamic Pricing, Explained: Why Prices Are Changing More Often | WSJ Price Index

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  • Опубликовано: 20 дек 2024

Комментарии • 89

  • @ttopero
    @ttopero 2 года назад +25

    Changing the price during a shopping venture doesn’t seem ethical, especially when the buyer isn’t alerted between when they selected the items & actually purchased it. That’s an advantage online retailers have over in-store shopping. Seeing weekly changes on staple items is jarring enough when we’re used to stable prices over months or years.

    • @edpowers3764
      @edpowers3764 3 месяца назад

      It’s called daily changes genius. Intraday changes to pricing for a grocery story is definitely not what they’re aiming for.

    • @ttopero
      @ttopero 3 месяца назад

      @@edpowers3764 I don’t recall that detail

    • @LunaticTheCat
      @LunaticTheCat Месяц назад

      ​@@edpowers3764 This isn't daily changing, genius. It's changes in price in real time using digital price displays.

  • @startuptrevor
    @startuptrevor 2 года назад +9

    I thought it was interesting it was mentioned at the end that mom and pop shops have started to experiment with dynamic pricing as well. It sounds like a good business opportunity for a software company to create an algorithm specifically for smaller businesses to use so they can compete with larger businesses on trying to be more profitable.

  • @dasfahrer8187
    @dasfahrer8187 2 года назад +16

    Wonder how long those advertised prices are good for? If you're in a store for an hour or so and have a basket full of items, can those prices change while they're in your basket? The advertised price is what you're supposed to pay for it, so I could see lawsuits coming b'c of this tech.

    • @gus473
      @gus473 2 года назад

      Sure hope so!
      (But more likely you will have to start tracking with a app, watch the checkout register and speak up, etc.) ¯\_ಠ_ಠ_/¯

    • @SaSha-hb5rq
      @SaSha-hb5rq 2 года назад +1

      To my knowledge, the price will probably be synchronized in their database so the price apply to you will be when they scan the product at the counter.

    • @jeffery_tang
      @jeffery_tang 2 года назад

      if they change only once a day then it should be fine

  • @ydnic6731
    @ydnic6731 2 года назад +8

    The question I have is what happens when I select an item off the shelf advertised at $1.99 and by the time I reach the checkout, the price has increased/ decreased- what price am I expected to pay and where does false advertising come in?

    • @edpowers3764
      @edpowers3764 3 месяца назад

      That would be intraday dynamic pricing for grocery stores and I definitely do not think they are aiming for that. It probably is more so day over day changes or week over week.

  • @AndPennyThought
    @AndPennyThought 2 года назад +13

    Is it possible multiple different automated algorithms could end up in a sort of loop with each other chasing prices to either zero or infinitely high?

    • @cheechenc7260
      @cheechenc7260 2 года назад +1

      they will probably set a base price and a price ceiling. I doubt they’ll let the price fall below profitability

    • @hivaladeen4892
      @hivaladeen4892 2 года назад +1

      @Arkenist thank you for your answer - very interesting

  • @Semper_Iratus
    @Semper_Iratus 2 года назад +36

    The proper term is called price gouging.

  • @rudiruttger
    @rudiruttger 2 года назад +18

    unreliable price expectations for consumers should just demotivate them to visit retailers.

    • @edpowers3764
      @edpowers3764 3 месяца назад

      Hmmm it certainly hasn’t “demotivated” them from visiting eretailers like Amazon. And it definitely hasn’t stopped you from buying airfare.

  • @jomojustin
    @jomojustin 2 года назад +7

    This is a nightmare for suppliers. Amazon holds suppliers accountable to “guarantee margins” when Amazon matches Walmart or other retailers. In response, supplier increase their costs to Amazon to account for potential disruption. Been happening for years and years.

  • @somaghosh2960
    @somaghosh2960 2 года назад +4

    Now a days this type of discussion very need.
    Thank you.

  • @ropro9817
    @ropro9817 2 года назад +5

    All right, so now we need consumer apps that counter dynamic pricing and shrinkflation. Let the arms race begin!

  • @djp1234
    @djp1234 2 года назад +7

    I always use price trackers on Amazon and buy only when the product is at its lowest price.

    • @kevinraja1022
      @kevinraja1022 2 года назад +1

      Hello ! Which trackers do you use ?

  • @r.r.r.918
    @r.r.r.918 2 года назад +5

    Some people are equating dynamic pricing with dissemination. Kind of, though not really. If by discrimination you mean "recognition and understanding of the difference between one thing and another", then sure it's _discrimination_ in that they are adjusting the price on demand and what the market will bear. There is nothing wrong with this. If you want and and are willing to pay for it, then you get the product else you don't. Dynamic pricing already exists in retails stores, but N (the period in which the price reevaluated) is becoming shorter right now (with high inflation). This makes sense if there is high inflation, then by not raising prices their margins shrink or it become unprofitable to even have the product itself.

  • @jcgreader
    @jcgreader 2 года назад +4

    So you pick an item, go to the register, and the price has changed?

    • @benjamindover4337
      @benjamindover4337 2 года назад

      No. If you accept an offer, you've locked in the price. But if you don't commit, they don't either.

    • @Antenox
      @Antenox 2 года назад

      @@benjamindover4337 He's talking about the time between picking an item up off a shelf and then walking to the cashier. There is a small chance the price might have changed in that short walk.

    • @benjamindover4337
      @benjamindover4337 2 года назад

      @@Antenox no there isnt. This video is about ecommerce. If stores change prices, they do it during their closed hours.

    • @James_Moton
      @James_Moton 2 года назад

      @@Antenox If that were to happen, the right thing to do is to charge the customer the originally advertised price, or the new price, whichever is smaller. In other words, if the price dropped while the customer was ordering the item, they should pay the new price, but if the price increased while the customer was ordering the item, they should pay the original price, assuming that the process was completed within a reasonable time interval.

  • @johnl.7754
    @johnl.7754 2 года назад +8

    I think reducing labor costs (changing prices) probably is a big factor why going toward digital pricing

  • @filadajunk
    @filadajunk Год назад +4

    It's price gouging, plain and simple.

    • @_rob_.
      @_rob_. 9 месяцев назад

      Yep.

  • @alparslankorkmaz2964
    @alparslankorkmaz2964 2 года назад +1

    Nice video.

  • @DannieMayre
    @DannieMayre 2 года назад +2

    Prices change every single second

  • @ronlyon4645
    @ronlyon4645 2 года назад

    how do i know when is the best time (the cheapest) of an item that i want to get?

    • @SamPockerOfficial
      @SamPockerOfficial 2 года назад

      Someone will make an app to track and consumers will report prices throughout the day, presumably like Ibotta scanning receipts in exchange for rewards. The apps will tell you the estimated "cheapest time/day" to purchase.

  • @_rob_.
    @_rob_. 9 месяцев назад

    This is just next level "GOTCHA".

  • @ericpham7773
    @ericpham7773 Год назад

    If inventory and money supply does change price instant to response to investment and supply and consumer

  • @hrishiwagh9916
    @hrishiwagh9916 2 года назад

    Price depending upon cost of goods, competitors price and HOW MUCH CUSTOMER WILLING TO PAY?
    if we just consider this last factor the product will become expensive by neighborhoods and if you live in a tourist town then you are further screwed. Choices for the common can go down by this strategy.
    Consider people from Cali moving to your place and jacking up the prices for you

  • @paxdriver
    @paxdriver 2 года назад +6

    It has nothing to do with businesses and store owners and everything to do with shareholders who have never stocked shelves or bought their own groceries or cooked their own meals a day in their lives lol. Shareholders shave pennies at the expense of customers, not community residents for the most part.
    Consumers have enabled it by putting local businesses out of business in favour of Amazon just to save an unnoticeable 32 cents on name brand shampoo

    • @patrickstar686
      @patrickstar686 2 года назад +2

      I would look at the government devaluing the currency before I take the blame to shareholders when it comes to consumer prices...

    • @paxdriver
      @paxdriver 2 года назад

      @@patrickstar686 except laws are written by people we elect, we don't get to elect the fed members and the Fed's shareholders are private too. The laws surrounding corporate mandates are more to blame, being beholden to shareholders conflicts with all "guiding principles of moral / social responsibility" they teach all these MBAs these days. You can't trade profit for sympathy if it's not in the company's financial interests. That's the problem. They're not allowed to not look out for shareholders, nothing we can do about the fed but we can elect lawmakers to properly steer commercialism.

    • @patrickstar686
      @patrickstar686 2 года назад

      @@paxdriver sure our current system steers corporations to maximize profits. But stores wouldn't have to raise prices if the money didn't lose ~15% of it's value over the last few years. International tensions that strain the supply chain and the global pandemic can't really be blamed on shareholders either.

  • @GibsonArtola
    @GibsonArtola 2 года назад +2

    I'm still waiting for an explanation of the Price Index, even though I know what it is. But the GPI must be severely affected by this type of pricing.

  • @johndewey6358
    @johndewey6358 2 года назад +3

    We should avoid shopping at any retailer that uses dynamic pricing.

  • @MahadHirad
    @MahadHirad 4 месяца назад

    Manufacture pricing is better than fast pricing for goods and services.

  • @kaplansedat
    @kaplansedat 2 года назад

    nice ad about there is no inflation. good attempt

  • @auro1986
    @auro1986 2 года назад +4

    dynamic pricing means when you charge any amount whenever and wherever you want

  • @dylanf3108
    @dylanf3108 2 года назад

    Crab prices for us Marylanders

  • @drewh3224
    @drewh3224 2 года назад +3

    Govs should make it illegal for dynamic pricing or whatever business calls it because it is a price gouging!

  • @johnmoore755
    @johnmoore755 8 месяцев назад

    How about just a fair price, were the owner makes a ethical profit, the worker gets paid based on merit, and the customer gets value for their money.

  • @chansherly212
    @chansherly212 2 года назад

    So like... the price is gonna change a dozen times between the moment i pick it off the shelf and when i check out?? IRL shopping trips from product selection to check out isn't instantenous like online shopping. This reeks of exploitation

  • @ayomideedgal5412
    @ayomideedgal5412 2 года назад +1

    First this was a good video

  • @supermodelatlanta1354
    @supermodelatlanta1354 2 года назад

    Why isn't this considered price gouging ?

  • @nihadnassar
    @nihadnassar 2 года назад +4

    There's something named MRP in India. Which means Maximum Retail Price. Is it just a third world thing? In capitalist America they can change the price whenever they want?

    • @benjamindover4337
      @benjamindover4337 2 года назад

      If the person selling something doesn't determine the price, then who does?

    • @wokeymcwokeface1974
      @wokeymcwokeface1974 2 года назад

      Yes, that’s how free markets work!
      Anyone artificially meddling in the market will end up ruining it!

    • @michielvermeulen6485
      @michielvermeulen6485 2 года назад +4

      @@wokeymcwokeface1974 If you think the US is a free market economy, you might have to look again.

    • @wokeymcwokeface1974
      @wokeymcwokeface1974 2 года назад +1

      @@michielvermeulen6485 there is no perfect free market economy but it’s free in some segments

    • @gus473
      @gus473 2 года назад

      @@wokeymcwokeface1974 Look up President Nixon's price controls in the early 1970s....

  • @paul.l6310
    @paul.l6310 2 года назад +29

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      @paul.l6310 2 года назад

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    • @nunyadambusiness3530
      @nunyadambusiness3530 2 года назад

      african scammers, there are thousands of videos of people exposing your lies. ruclips.net/video/_6Ib0rHMoKw/видео.html

  • @itacirgabral8586
    @itacirgabral8586 2 года назад +1

    market's invisible hand is with parkinson

  • @dudewaldo4
    @dudewaldo4 2 года назад +1

    Now look plebs, we know you're upset about everything being so expensive, but here's a little lesson on why it's actually sensible. Continue to happily serve us!

  • @maxpayne216
    @maxpayne216 2 года назад +2

    Amazing use of electronic price tags. They’re produced largely from Taiwan.
    And it’s evil if you consistently try to squeeze the biggest profit from people in this way.

  • @TheGreatSovietUnion2
    @TheGreatSovietUnion2 2 года назад

    It's screwing the consumer.... that's all. Video done.

  • @floridaadventuresports3921
    @floridaadventuresports3921 2 года назад +3

    🤣 Trying to explain away the failure of capitalism

    • @dudewaldo4
      @dudewaldo4 2 года назад +1

      Exactly lol

    • @nunyadambusiness3530
      @nunyadambusiness3530 2 года назад +2

      finally someone said it. i'm just glad more and more people are realizing that unlimited growth and wealth concentration to the top, just isn't going to end well at all.

  • @LegoStarWarsGuyinVA
    @LegoStarWarsGuyinVA 2 года назад

    Oh my, my Tik Tok account made it big time =)

  • @GarrickPinon
    @GarrickPinon 2 года назад +4

    Sounds like price gouging to me

    • @johnsamuel1999
      @johnsamuel1999 2 года назад

      Its selling the product accoeding to its value oe demand at the time. Not price gouging

  • @525Lines
    @525Lines 2 года назад

    And the same product in different sizes show up. Four different sizes in the same slot for baby spinach at the joint where I shop.

  • @bwo1641
    @bwo1641 2 года назад

    audio is a bit quiet. and voice over speaks with a ridiculous amount of vocal fry

  • @liyexiang666
    @liyexiang666 2 года назад

    dynamic price guldging

  • @nakosimpson7459
    @nakosimpson7459 2 года назад

    Uuu

  • @MrSupernova111
    @MrSupernova111 2 года назад +1

    Big business doing everything they can to squeeze every cent out of the poor and working class as they can. Just another day in the great USA!

  • @DakotaFord592
    @DakotaFord592 9 месяцев назад

    Greed

  • @hwadeiv
    @hwadeiv 2 года назад

    Dynamic pricing = Price Discrimination