General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsNYT: Grocery stores move toward customer-specific pricing
http://www.nytimes.com/2012/08/10/business/supermarkets-try-customizing-prices-for-shoppers.htmlIt used to be that with dedication and a good pair of scissors, one grocery shopper could get the same coupons and cheap prices as another.
Now going to the grocery store is becoming a lot less egalitarian.
At a Safeway in Denver, a 24-pack of Refreshe bottled water costs $2.71 for Jennie Sanford, a project manager. For Emily Vanek, a blogger, the price is $3.69.
... Now grocers like Safeway and Kroger are going one step further, each offering differing methods to determine individualized prices. Hoping to improve razor-thin profit margins, they are creating specific offers and prices, based on shoppers behaviors, that could encourage them to spend more: a bigger box of Tide and bologna if the retailers data suggests a shopper has a large family, for example (and expensive bologna if the data indicates the shopper is not greatly price-conscious).
nichomachus
(12,754 posts)Seriously, if they're going to pull this shit, I will refuse to go there. I'll find another place.
This is worse than the airlines where everyone on the plane paid a different price than you.
This is what was behind all those laws they scuttled that used to require the stores post the price right on each item. They said it was to save money, but it was setting the stage for ripping people off.
mike_c
(36,281 posts)I believe Safeway is, at least in my local Safeway stores (northern California). We don't have a local Trader Joes, but if we did they would be subject to the same decision making process I use to determine whom to do business with in my community-- if the workers are organized, they'll get my business over a non-union shop whenever possible. Some things are more important than price.
Brickbat
(19,339 posts)You and I have similar buying habits, I think.
Lars39
(26,109 posts)different prices for the exact same item. People will be pissed.
riderinthestorm
(23,272 posts)I make my purchases based upon what the price is on the shelf, not some price I may get at check out (and how would you know you might get that special price??)
mike_c
(36,281 posts)It's the discounted price. Safeway calls it the Safeway-4-you program, and as far as I can tell-- I've signed up-- rather then putting items on sale generally, they offer sale prices to individuals whom their software indicates are likely to be enticed to buy specific products. For example, I buy Greek yoghurt every week or two, and my "deals" recently offered *me* a steeply discounted price on another brand of Greek yoghurt. I get the discount if I select the "deal" from a Safeway web site, then bring the product to the scanner, which automatically gives me the discounted price. Another customer buying the same product might not have been offered that discount, or might not have selected that deal when offered it. It's like clipping coupons in the sense that if you think you might buy the product you can click on the discount offered.
Doesn't really seem sinister, frankly. It's like electronic coupons.
riderinthestorm
(23,272 posts)Do they email you the specials for the week? I tend to avoid giving my email to anyone in order to reduce spam, or do you have to go to their website? Is it a way to ramp up numbers to their website?
mike_c
(36,281 posts)Once there, you are presented with a bunch of product discounts that are supposedly tailored to your personal buying habits-- remember, Safeway has been collecting data on customers' choices ever since they introduced their club card, which gives them a means of tying grocery purchases to individuals who use their club card in exchange for discounts on products all over the store. On the web site, you are offered discounts on products they think you might be interested in, and you select the ones you think you might buy, which is just like clipping coupons IMO-- that's the rub, for me, since I rarely take the time to actually go to the web site. But the discounts usually last for a couple of weeks or more, so if you check it often you can theoretically build a stash of upcoming discounts that will be good at least until your next shopping trip. You can also access your account with a smart phone or tablet app so you can remind yourself which products you've been offered discounts on while browsing the aisles.
Incitatus
(5,317 posts)Ultimately meaning customers paying more than they would with their current advertising/discount system.
mike_c
(36,281 posts)Really, it's just an electronic version of coupon clipping-- the only thing that's fundamentally more sophisticated is that the coupon selection is individually tailored to the buying habits of each customer, so the discounts they offer me would likely differ from the discounts they might offer you.
As for customers paying more, the only mechanisms for that would be exactly the same as with printed coupons, i.e. they get you into the store. After that, restraint is up to the customer, LOL.