Date: Sun Sep 24 2000 - 07:16:27 PDT
In a message dated 9/24/00 8:27:42 AM Eastern Daylight Time,
<< Another potential for dynamic pricing: I've read an article in Fortune
that talks about Coca-Cola investigating how to build soft drink
machines that increase its prices as the outdoor temperature goes up.
Apparently, a Coke is worth more on a hot day than a cool one. (Pepsi
responded saying it would never consider "exploiting" consumers in
this manner, which I take to mean they regretted not thinking of it
couldn't this SIMPLY be a function of supply/demand? in the wake of
hurricane andrew, construction supplies skyrocketed; contractors were labeled
exploitive (expletives removed). consumers ignored the increased cost of
shipping: try getting 4' x 8' sheetrock, which has to be carried by two men,
from a truck that can't get closer than three blocks to your site; or try
finding lumber, which is in short supply and now has to be trucked from two
states away; or etc etc etc.
re dvd's - i find the price of tampons varies up to two dollars on what is
approx a $6 item among Albertsons stores in my city. on the same day.
function of what? wage-earning or age/gender demographics? probably both
and demonstrated willingness to pay. this practice certainly predates
amazon. what's with the wide-eyed wonder? call it tailored marketing.
consumer, you've got to give up information to get benefit - period.
every day i am bombarded by stories of how the consumer is being exploited by
the marketers' use of consumer information. well, that $25 dvd might have
cost you $50 if the market could not accurately predict how many to produce.
i am writing the obvious here (linda rosencrantz started it), but i think the
benefit is too often ignored. the same information that predicts what you
will pay for a dvd also eliminates huge inventories.
much as we'd like (r)e-tails to resemble dutch auctions, they also have to
perform. the piper they pay is you, me and any other holders of KO, USG or
stepping down off of the soapbox,
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