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| Economy |
| How to Fight Back Against Dynamic Pricing |
| 2024-01-29 |
| [SPY] The key to finding the best price used to be finding the cheapest seller. Comparison shopping was the way to go. But over the last few years that approach — which still feels logical — has ceased to produce the best results. Shoppers now need to consider dynamic shifts in supply and demand. Comparison shopping now occurs across time. Alexander MacKay, an assistant professor of business administration at Harvard Business School, says his research suggests prices of popular products are dropping or rising by as much as 30% from one hour to the next. Changes of 5% to 10% are typical across products, SKUs, and retailers. What gives? The reason for the massive acceleration in price shift is the adoption of dynamic pricing tools across retail. These tools alter the price of a product based on shifts in supply or demand (as well as a number of other factors). And they work fast. Amazon reportedly changes prices for millions of items every few minutes. Companies selling dynamic pricing tools to smaller shops declined to offer specifics on frequency. "Retailers tend to be coy about using dynamic pricing as it still maintains something of a bad reputation among shoppers," says Michael Orr, a senior director at Blue Yonder, a Scottsdale, Arizona-based company that offers retailers and brands pricing technology tools. But it’s safe to say that prices now change as much as 100 times faster than they did before dynamic pricing became part of the game. |
| Posted by:Besoeker |
| #3 That sounds very impressive, NoMoreBS. Beyond my comprehension, but definitely impressive. ;-) |
| Posted by: trailing wife 2024-01-29 22:23 |
| #2 My guess is that the "dynamism" is mostly on the upside from a far more rigid baseline resistant to rapid volume changes. In the dusty archives of finance one can dimly recall the age of the manual arbitrage markets, where less than light-speed, world-wide market price spreads could provide reasonable leveling transactions for large capital holdings. |
| Posted by: NoMoreBS 2024-01-29 14:46 |
| #1 An example of AI? |
| Posted by: Bobby 2024-01-29 09:02 |