Have You Ever Heard Of Surveillance Pricing? Some Businesses Use It.

OneEyedDiva

OneEyedDiva

SF VIP
Location
New Jersey
This is the first I've heard of it. Here's an excerpt from ABC News article that explains what it is:
"New Jersey Gov. Mikie Sherrill is pledging to ban a controversial policy where stores offer different prices to different people.
It's called surveillance pricing and it gives companies the ability to use consumer data and behavior to determine pricing.
Businesses gather information on customers like their demographics, shopping habits and browsing data -- and then they charge the highest price they believe an individual will pay. That price can vary from person to person." More about it here:
https://abc7ny.com/post/nj-gov-miki...illance-pricing-shoppers-new-jersey/18703129/
 
Last edited:
I think I witnessed this in our local CVS stores. My home is situated within driving distance of 2 CVS stores. One had hair color priced at $8.99...the other store about a mile in a more high priced location had the same hair color priced for $9.99. At first I thought maybe I was wrong, but I still continue to see it.
 
I’ve noticed different pricing in different neighborhoods and have wondered if it’s simply due to the higher costs associated with shoplifting and petty theft in some areas. 🤔

I’ve also noticed that some internet merchants will offer a discount if you place a few things in your shopping cart and wait a few days before making a purchase.

This new surveillance pricing may work to some customers advantage if the information is used to offer discounts to people that make large purchases of certain items on a regular basis. 🤔

All we can do is stay sharp and keep learning as the rules of the game continue to change.
 
It's a well known and established method of pricing to take it as high as the market will stand. This is taking that tactic to the next level by its selective pricing.
The days of cost plus a margin are so 20th century.
 
I just read that they changed it.

In early 2024, Jumbo stopped using different price levels per region or store, meaning products could be more expensive in one city or district than in another. This policy was scrapped to equalize prices everywhere. Why did they do that? (Historical): The differences were based on competition. In areas with a lot of competition (such as nearby Lidl or Aldi), prices were lower, while stores without much competition in the neighborhood were more expensive.

What I find weird is that you pay the same in a small store as in the super luxurious big one from the same company. That means you pay for the fabulous experience as they call it in the luxury shop that just got renovated for thousands and is in a more expensive spot.

They do this in poor countries with tourists. I used to think it was annoying, but can you blame them. Say I had to sell groceries in some poor country, that costed me time and effort to grow and pluck for a meagre income and this rich person is on a fancy holiday and wants the cheapest of the cheapest (my sis is a doc and she said her doc friends who earn at least 10 times more than her, wouldn't even give 1 euro to the guy who carried their suitcase), I wouldn't want to work for 20 cents either to serve them if I didn't have to.

And for a small shop it makes perfect sense. We have a small Toko at the mall that sells Indonesian stuff. People complained in the reviews that it was way more expensive than the big Toko, like 10 euro more expensive for a product at times. That owner commented: Yes hello! Do you have any idea how much the rent is here???
They have to pay a crazy amount of rent there. The big one is in a cheap spot.

That's also the case with vets. I went to one with a huge house, a veterinarian with a home practice . Costed a fortune. The one with the tiny place was way cheaper, but the cheapest of all is the super tiny one in a cheap big shop for pets on an industrial terrain. Saves you hundreds if you just take the bus and go there instead.
 
Last edited:
You must log in or register to reply here.
Back
Top