Dynamic Pricing Replicates Car Buying Experience for $7 DVDs

Dynamic pricing is all the rage on the Internet these days, as online sellers like Amazon inject algorithms designed to extract as much money from each customer as that customer might be willing to pay. Instead of a grocery store, with a fixed price on an item, Internet Web sales sites are now more like car lots, where you won’t get the best deal unless you’re willing to walk out, virtually speaking, without what you want.

For example, Amazon is very happy to offer you a price on an item, but if you leave without checking out, you’ll find the next time you come back that it’s unexpectedly cheaper.

Amazon will even call you back like a car salesman does on a slow day. Well, it will email you to let you know that it’s got a better price for you.

I’m just waiting until Amazon tells you it wants to ask its manager if it’s possible to get you into that DVD for $4.99. Then, maybe, I’ll splurge on a trio of films that I won’t end up watching until I find a functional secondhand DVD player in 2033.

I’m just an old man, but the whole dynamic pricing thing just seems like another way for companies to try to take advantage of their existing and loyal customers. And it does not build good brand equity or give me the urge to buy a bunch more.