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Comment by amazingamazing

11 hours ago

Why grocery stores only? It’s also unclear how this will change anything - don’t the grocery stores in richer areas already charge more? I’ve noticed Whole Foods prices are not the same across all stores even in the same state.

You're thinking of pricing zones—shoppers in Zone A pay a different price than those in Zone B. This makes sense, for example, if shipping costs are higher in Zone B.

The bill in question is about per-shopper pricing (e.g, you and I pay different prices in the same store). This is something Lyft and Uber do, but it's not really possible in retail.

  • > This is something Lyft and Uber do, but it's not really possible in retail.

    It is possible for retail. For example, you can simply not display the price. You can display a price range. You can use EInk displays which auto-update based on who's approaching the item.

    And of course it's infinitely possible in an online store.

    One example of how this is being employed is McDonalds trying to push everyone to use the app. They'll give lower prices in app while raising prices on the menu giving a "not using app" tax. That enables them to have flexible per user prices within the app. A store could do the same thing.

    • How would that work? The barcode on the item doesn't get rewritten, the checkout counter can't distinguish who picked up which exact item. Even if they did assign unique barcodes to each item, what happens if you take the item off the shelf, and put it in someone else's cart? They'd be charged the wrong price for the item.

      4 replies →

    • Your plan fails in a few ways.

      Refreshing the content on an electronic shelf label (ESL) takes about 30 seconds, and multiple people can view a product simultaneously. Unless the store is giving everyone AR glasses, people will notice the price discrepancy.

      This assumes you have sufficient data to actually recognize a shopper such as facial ID or some form of iBeacon for every single product for which you wish to implement price discrimination. Basic ESLs cost $3 to $12, depending on size and use very little energy. Adding a camera means more energy, so a bigger battery and more cost.

      Using in-app discounts is the most likely way to implement this, which I am okay with. Shoppers are willingly trading their data privacy for a discount.

      3 replies →

    • part of the reason I don't go there anymore. I noticed recently taco bell in my area no longer asks about their app, just takes my order.

    • I think McDonalds dynamic pricing is great. Every time I checkout the app there is some crazy deal. Sure its not always something I want but I'm not necessarily competing w/ the other items on the menu. If there's no deal on something I want, I check BK or similar chains.

  • The article says loyalty programs and https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/H... makes no mention of this store restriction. Just retailer.

    It’s unclear to me why transportation demand pricing is allowed but not delivery.

    I expect the outcome of this to be prices raised for everyone and then loyalty discounts per group.

    • > It’s unclear to me why transportation demand pricing is allowed but not delivery.

      I don't think it should be allowed. It's predatory. It allows a company like Uber and Lyft to see things like "Oh, you are going to a hospital, then I'm going to apply a 10% surcharge because you are probably desperate".

      It also works against the drivers. Uber/Lyft see things like "This person is logged on for 8 hours, they are desperate, so let's give them lower rates and worse routes."

      9 replies →

  • Just for clarification: Does this affect intraday price changes, and how much if this is AI vs. 'standard database operations'?

    I'm thinking of scenarios such as 'Oh, we're going to have a heatwave between 14:00 and 19:00, let's make popsicles 9 cent more expensive for everyone' or 'hm, that particular brand of soda sells extremely good today, let's hike the price'/'this noodle soup gets new stock later today, let's lower the price to clear out the shelf'

    Because with electronic signage, that is very possible.

    • It’s interesting, no matter what the sign says, the cost is determined at the checkout. I think you missed the point.

      This is about profiling people buying through apps.

      I guess it’s neat someone is trying to do something about grocery prices, this won’t move the needle. Still nice to have in the books.

      Now if only the governer could figure out how to get the Key bridge built instead of firing the company and starting over… that would be cool.

      “Yeah it’ll be built by 2028!” At this point I doubt it’ll be finished in my lifetime.

  • This is possible in retail, or will soon be.

    Canada's major grocery chain has migrated entirely to LCD price tagging that can receive OTA updates. There are now no paper price labels in the store.

    The same chains have extensive camera coverage on the entrance / exits of the store.

    So pricing can be an optimization function as fine grained as persons currently in the store.

    Cameras on the aisles as well can enforce that individual tags update while nobody is within 15 feet, etc.

    It's hard to even talk or think about without without sounding (and becoming!) conspiratorial. Add a little data from our trusted partners and they can jack specific prices according to urgency - eg, floral bouquets when you're en route to a dance recital.

    • Since you get a location and time stamped receipt these shenanigans would be completely trivial to detect.

    • It’s hard to talk about without sounding conspiratorial because it literally is an unfounded conspiracy. The impracticalities of this scheme are immediately obvious and no evidence of it ever actually being implemented in physical retail exists.

For impact most likely. Dynamic pricing is core to the budget airline industry and such a law would hurt them more, especially with the thin margins. It happens with games too, but the price of games doesn't affect how someone eats.

Price targeting can help the poor in some cases and hurt them in others. For essentials where the need to purchase is high and the provider has a semi-monopoly, dynamic pricing leaves everyone worse off. For instance, think of groceries where there is only one store nearby or medicines with only one producer.

On the other hand, for something like a Netflix subscription, price discrimination DOES tend to help the poor users out. Netflix is 10x cheaper in third world countries for the exact same product. If they were forced to charge the same price everywhere, they would just charge everyone the US price and foreign users would be left out.

  • Per customer pricing will squeeze every customer for every dollar they can possibly afford. The more data they have the more they can calculate the level of desperation for each purchase. If they have your message history and see your mum is dying, they can spike flight tickets for example. And they will know exactly the highest amount you can afford for it.

  • Price discrimination at all is not the same as individualized prices. And really the issue conflates two things: 1, privacy and surveillance pricing; 2, AI profit-maximizing.

    Even if Netflix or others do price-discrimination, the AI-pricing issue would still be used to squeeze as much as possible from the poor. It's not like these blood-sucking capitalists who run these massive corporations are into helping the poor.

They charge more for everyone there. Now they are able to charge more for you

  • Which supermarkets have you seen doing this? This conspiracy theory about epaper tags changing their price on you falls flat when you think about it for even a moment. The tags do not update fast enough to do that, couldn’t handle multiple people in the same area, and would be impractical to link back to the purchase time, resulting in people noticing the price scanned didn’t match what they saw on the ticket.

    Per customer pricing is only possible for online shopping.

Because the sole driver of all of this is the UFCW. That's why only grocery stores.

Because they're still mad they think it "takes away jobs" to put in electronic ink price tags.

That's it. They came up with the rest of the FUD and latched onto clueless lawmakers.