How Retailers Use Personalized Prices
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Re: How Retailers Use Personalized Prices
#2Retailers who ask customers if they would like to donate to charity after a sale are using it as a test to see if they can raise prices.
Re: How Retailers Use Personalized Prices
#3Retailers who ask customers if they would like to donate to charity after a sale are using it as a test to see if they can raise prices.
They also use it as a tax write off...
Re: How Retailers Use Personalized Prices
#4Some stores offer coupons and price matching guarantees to attract price sensitive customers. Some stores tout that every customer gets "the same low price."
A new facet on the old games.
Re: How Retailers Use Personalized Prices
#5Re: How Retailers Use Personalized Prices
#6Retailers who ask customers if they would like to donate to charity after a sale are using it as a test to see if they can raise prices.
Do you know this, or are you assuming this? It is certainly possible that, at the margin, someone is willing to spend money on a charity but not spend that same money on the product. Although I suppose there's probably a correlation between donating and willingness to pay more.
Re: How Retailers Use Personalized Prices
#7Retailers who ask customers if they would like to donate to charity after a sale are using it as a test to see if they can raise prices.
They also use it as a tax write off...
I'm not so sure about that. Citation? I believe in general (at least in the US), it would be really unusual for a corporation to get a tax break for money that was never theirs. The chief factor in how corporations are taxed in the US is their domestic profit. Whether you donate to charity or light it on fire, it shouldn't matter at all to the corporation's profit, and therefore it shouldn't matter to their taxes.
I'm happy to be convinced otherwise, though. Let me know.
Re: How Retailers Use Personalized Prices
#8Retailers who ask customers if they would like to donate to charity after a sale are using it as a test to see if they can raise prices.
That seems like a very weak and noisy signal compared to, you know, directly changing prices, which they do all the time.
Re: How Retailers Use Personalized Prices
#9Retailers who ask customers if they would like to donate to charity after a sale are using it as a test to see if they can raise prices.
That seems like a very weak and noisy signal compared to, you know, directly changing prices, which they do all the time.
Changing the price first has the disadvantage of possibly losing the sale.
Re: How Retailers Use Personalized Prices
#10There must be some incredible data being mined by Amazon via Whole Foods. At the Whole Foods in Palo Alto, there seems to be an elaborate pricing experiment in the ice cream department. Entire brands (Talenti) are dropped in price 70%. Other times, particular flavors are reduced that much, sometimes less so. For Talenti, the entire brand is sold out. Some of the on-sale flavors go quickly or are also sold out while others are completely ignored, despite the discount (namely anything from Three Twins, who's blurb on their ice cream and their shop at SFO make them sound like assholes). Maybe 25% of the options in that section are discounted, and the amount of discounts varies as well, with a number of different steps like (80%, 50%, 35%, 20%, 10% or similar). Nothing else in the shop is stratified like that. Beer and wine might have 2% of the options on sale. Ditto produce and meat. Most departments offer no discounts.