Grocery Store "Dynamic Pricing"

7,502 Views | 66 Replies | Last: 9 mo ago by Stat Monitor Repairman
Krombopulos Michael
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aka changing prices as you shop due to "factors"




Quote:

Several major grocery chains, including Walmart, Kroger, and Schnucks, have begun experimenting with Electronic Shelf Labels (ESLs). These digital labels allow for real-time price updates, which can be adjusted based on various factors such as demand, time of day, and inventory levels. Some stores have already implemented pilot programs where prices change dynamically. REMA 1000, a Norwegian supermarket, is as an early adopter of dynamic pricing, adjusting prices based on competitor actions and demand spikes.

In the U.S., chains like Walmart and Kroger are exploring similar strategies, with Walmart naming 500 stores to use ESLs. Microsoft has contracts with grocery stores, such as Kroger and Walmart, to implement these pricing strategies, including not just price adjustments but also integrating data analytics to predict demand and optimize pricing.

The technology also supports the potential for facial recognition, which could lead to personalized digital coupon pricing based on customer profiles, although this aspect is still largely in the conceptual phase due to privacy concerns.

The Federal Trade Commission (FTC) has shown interest in "surveillance pricing," where prices are adjusted based on customer data. This scrutiny could lead to regulations that might limit or shape how dynamic pricing is implemented.

Some grocery stores are considering opting out of dynamic pricing for certain essentials, however, the trend towards more data-driven pricing strategies is expected to continue, driven by the need for retailers to remain competitive and manage costs effectively.

Kinda feels like a solution looking for a problem that wasn't there in the first place.

They are groceries not commodities traded on an exchange. Do we really have to financialize every aspect of life?
Pizza
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I'm not ok with that...
Waffledynamics
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Maybe the shoplifters have a point.

But seriously, this is a detestable idea.
bigjag19
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Feels like actual discrimination could be at play by this idea.
CrackerJackAg
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Waffledynamics said:

Maybe the shoplifters have a point.

But seriously, this is a detestable idea.


This. Burn that **** down.

I don't consent to this kind of crap in every aspect of my life.

I'm the guy that covers my iPhone lense. I never use the "selfie" camera. That's really just there so that apps can see your facial expressions.
AgGrad99
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I wonder which groups of people would get preferential pricing.

Anyone have an idea?

Probably people with Swedish heritage, I bet.
rocky the dog
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Elections are when people find out what politicians stand for, and politicians find out what people will fall for.
Gaeilge
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This is basically just using technology to justify price gouging IMO.
BonfireNerd04
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From an ECON 101 viewpoint, this is just an efficient way to minimize "menu costs" (i.e., the cost of having to reprint menus, price tags, or ads as the market equilibrium changes).

From a shopper viewpoint, I think I'd have the bad luck of the price of my stuff increasing *just* as I get to the checkout lane, and that would be annoying.
4stringAg
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rocky the dog said:


Aint that the truth. Good one rocky as always.
HDeathstar
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This would be like Amazon pricing. Where you log in and if you are a person that buys and authors book as soon as it comes out and they know it they may charge you more, and if you always look and never buy, they may charge you less to get you to buy it.

I would think that they are trying to push this to the grocery stores. Just need to know who you are.
Kenneth_2003
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Woah woah woah!!!
But but if the gas station changes the price based on current demand it's price gouging!

Well that's what FB told me at least.

This isn't stupid. It's asinine! 99.999% of the time whatever the item is will be on the truck for restocking tomorrow. If stores can't predict their demand they need better inventory management.

I used to live in a small South Texas town. Woke up one morning the entire town water stem was down. Within HOURS, HEB had two tankers of pale water in town and two more trucks of palletized bottled water (single serve size and the two gallon size) in town. One tanker was hooked up to the store to keep it running with potable water (deli, butcher shops, produce, etc) and the other was filling customer containers in the parking lot.

This is DUMB
Gaw617
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This happens at Amazon already
Logos Stick
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Waffledynamics said:

Maybe the shoplifters have a point.

But seriously, this is a detestable idea.



Why? They already do dynamic pricing, it's simply not in realtime. Gas stations do it. That price changes at least daily. How about "market price" in restaurants?

As long as they don't discriminate based on identity, I don't care.
BusterAg
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I would go in and find items that were overstocked, and loudly and rudely demand a 50% discount on those items.
It takes a special kind of brainwashed useful idiot to politically defend government fraud, waste, and abuse.
Trajan88
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What's next... stock trading-like shopping at grocery stores like when but stocks and bonds at Schwab and E-trade?
Gigem_94
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Nebraska furniture mart uses similar dynamic pricing but I think they do it only to ensure their prices match the lowest prices offered by any competitors. That part would be okay.
Logos Stick
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Gaw617 said:

This happens at Amazon already


It happens at Walmart online too.
Pizza
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rocky the dog said:




Perfect example of how insanely commercialized society has become....which feels like an old argument that has been made every decade that I've been alive.
CheeseSndwch
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Food staples/grocery essentials (i.e. things that aren't taxed in Texas) should be exempt from dynamic pricing but snacks and non-essentials should be fair game.
Gaeilge
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This could easily allow grocers to create the perception of an artificial supply constraint to raise prices.

If I pick up a $1000 widget at the store when there were five in the bin and someone grabs another a minute after me and checks out before me does that mean my widget is now $1200 because their inventory went down?
Ryan the Temp
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Gaw617 said:

This happens at Amazon already
And Amazon couples price manipulation it with quantity tags like "only 1 left" to create a sense of urgency.
93MarineHorn
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The only way I'm ok with this is if it is only used to mark the prices down because of overstock. Getting to the checkout to discover that several of the items you bought have shot up in price would be rage inducing for many people.
javajaws
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Fine with dynamic pricing - but it should only be changed outside of business hours. Nobody wants to see price A and end up paying price B by the time they get to the checkout.

Also, I would like to see it a requirement to either display the pricing history or allow that data be accessible via API for 3rd parties to read from.
Stressboy
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I will actively avoid these stores then. With the different coupon systems a consumer can try to save money going to a store by pre shopping the deals, but with this, you have to watch it like the stock market. It will overwhelm most consumers and make them question if they are getting ripped off.

Crazy, and I think stupid, idea. It is not uber where they can display the current price and it be different based on the time and traffic. That works because I can shop Lyft to see the competitors price and I have one selection to make.

Here you have to do this type of comparison shopping each time you reach for a product.
normalhorn
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Ryan the Temp said:

Gaw617 said:

This happens at Amazon already
And Amazon couples price manipulation it with quantity tags like "only 1 left" to create a sense of urgency.
Ditto for booking a hotel on an aggregator site, like Hotels.com

Last week, i booked a room in Dalhart at the Hampton Inn, since the site said "1 room remaining". Twenty minutes later, my father and sister booked an additional 3 rooms. They both texted me to say, "you better book that room, because the website said only 1 left"

How does dynamic pricing work with grocery store coupons that entice people to choose Kroger over HEB, per say?

TLDR; stop this train, i want to get off of it now...
...take it easy on me, I'm a normal horn
Hagen95
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Hagen95
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Hagen95
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JW
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If a price went up by time I checkout, I'm leaving it there.
kb2001
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I would be petty enough to make them remove any items that had the price go up right there at the register. I won't buy it, and I will waste their time removing and restocking everything that changed.

If they want to decide the price at checkout time, then I will decide whether or not to buy it at checkout time as well.
AggieVictor10
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Ryan the Temp
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normalhorn said:

Ryan the Temp said:

Gaw617 said:

This happens at Amazon already
And Amazon couples price manipulation it with quantity tags like "only 1 left" to create a sense of urgency.
Ditto for booking a hotel on an aggregator site, like Hotels.com

Last week, i booked a room in Dalhart at the Hampton Inn, since the site said "1 room remaining". Twenty minutes later, my father and sister booked an additional 3 rooms. They both texted me to say, "you better book that room, because the website said only 1 left"

How does dynamic pricing work with grocery store coupons that entice people to choose Kroger over HEB, per say?

TLDR; stop this train, i want to get off of it now...
Kroger already imposes a higher price for customers who do not use their Kroger Plus card at checkout. Basically customers who do not want their purchase habits tracked by the store pay a premium for groceries.
BaseballAggie13
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How would this work in California where you can just walk out of the store without paying?
Stat Monitor Repairman
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Logos Stick said:

Gaw617 said:

This happens at Amazon already
It happens at Walmart online too.
Have wondered about this.

Are you looking at the same prices as your neighbor?

Are the Amazon/Walmart prices you see on your screen based on what they think you'll pay based on your prior order history on your account.

Suspect airlines are doing this too.

Airlines might have been the first adopters of this.
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