Surge Pricing

LOAM · 25 Jun 2017 at 22:03

I saw this on sky news earlier today. For anyone who doesn't know, its a system of electronic price tags being trialled across several supermarkets right now which allows the store to increase prices instantly as demand increases. The example given was they can on the fly increase the cost of sandwiches, drinks and crisps during lunch time as demand peaks for these items. Another example was ice creams, beer and bbq food during heatwaves.

Its apparently quite common in America and its only a matter of time before it hits the UK as it will reportedly increase profitability by 3% and several of the big supermarkets are running viability tests now. I've linked to a newspaper article as it explains the history of the process.

I'm appalled at the prospect of this, I think its utterly unfair and exploitative and could leave you seeing a price increase in the time between picking an item up and getting to the till. These supermarkets profits are already vast and I feel like we are reaching a point where capitalism has gone insane. I'm quite angered by this if im honest.

https://www.theguardian.com/technol...omes-to-the-supermarket-dynamic-personal-data

And yes a mirror link sorry

http://www.mirror.co.uk/money/supermarkets-cold-introduce-uber-style-10686460

LOAM · 25 Jun 2017 at 22:15

dowie said:
I don't see why it is an issue in principle, though you've correctly highlighted one practical issue with it perhaps:

That does need to be mitigated - perhaps with prices only updating over night. They probably could include some prediction into such a scheme too, using weather data etc.. and dynamically increase prices in anticipation of demand.

Its reactivate on the fly, if a surge in people buying product X is seen at the till then the system instantly updates the electronic display on the stands.

It just seems completely wrong to me to sqeeze every last pence out of the population. It breaks being able to budget if your weekly shopping is going to fluctuate that often. I can't see the benefits to the shopper and you can bet your life you wont see prices reduce on low demand items.

LOAM · 25 Jun 2017 at 22:18

dowie said:
well it isn't clear that that is being proposed or whether it is per store, per region/group of stores etc...

No, the item on sky was much clearer to be honest.

LOAM · 25 Jun 2017 at 22:35

Dis86 said:
I'd be avoiding any place that did this out of principal.

I feel the same way but I imagine they will all be at it pretty quickly if it proves to be a money generator.

LOAM · 25 Jun 2017 at 22:45

If you read around, the supermarkets are already talking of expanding it to other areas like fuel. Examples given would be you would be charged more if filled up in the morning / school run.

LOAM · 25 Jun 2017 at 22:57

Vanquish-Storm said:
And then Amazon fresh comes along and you get your shopping delivered same day at the price you see. Showing the supermarkets how it should be done.

Amazon are the Kings of surge pricing, they started it all off. They have all sorts of data on you right down to the value of your house and are rumoured to use it accordingly.

LOAM · 26 Jun 2017 at 23:09

Im going to get some chickens and plant some veg.

Joking aside we barely spend anything in supermarkets these days and I don't think our local farm shop is going to go electronic anytime soon. Oh and I don't eat lunch either so it not going to have a vast effect on us, I still think its a **** bag tactic though.