← Back to context

Comment by xp84

1 day ago

Somehow this doesn't scare me at all. Fast food restaurants have been doing this for like 8 years. Almost any order you could make normally, you could get a buck or two off of it if you order through their incredibly sluggish, bloated cross-platform-framework "app" and redeem a "deal." And they tell you this with giant ads.

The function is to get incremental sales (and hopefully establish a pattern of repeat business) by discounting selectively to people who might not buy at all otherwise.

If you're thinking "But they should give that discount to everybody!" that's not a thing. There's not enough margin in the first place, especially at a supermarket or Walmart, that everyone could just have lower prices on everything.

My grocery store already sends me individualized paper coupons every month.

All of this is promotions. It's all just trying to get some incremental sales, and hoping that if you get an offer for free hot dog buns you'll also buy the hotdogs.

I've always figured the dream would be to be able to advertise a low price without ever having to deliver it.

Some particularly skeevy car dealers were skewered many years ago for saying "Advertised price is less tax, title, and additional $2,000".

But they CAN get away with saying "The $8.99 burger is $11.99 unless you: - possess one of a range of sanctioned devices - have access to data services - are able to create and manage an account - are willing to opt in to whatever tracking/marketing gimmickry - can claim the "deal" in advance

Each of those steps is a funnel that opts out at least some potential customers from the deal. The 12-year-old who doesn't own a phone can't get the deal. The 85-year-old who can't operate Android can't. The person making impulse purchases and not pre-researching their meal selection misses the offer.

I feel like there's a argument for a precedent akin to "no purchase necessary to enter" for sweepstakes-- no additional purchase, software install, or commitment should be required to claim any advertised offer.

  • Agree. I see it also as, and maybe it's just the kinda wealthy area that I live in (though I'm myself a lifelong cheapskate)... I assume that the upper 50%, by income, of the people who walk into these places value their time too much to spend it dicking around to get the promos, so it's a convenient way to maximize the revenue from the people who don't mind wasting money.

> There's not enough margin in the first place, especially at a supermarket or Walmart, that everyone could just have lower prices on everything.

Strange how this totally worked until a few years ago. I never cut coupons or any other time wasting shenanigans, but was able to stop up on deals on the commonly used shelf-stable items I buy without even needing to signup to a loyalty program.

I understand price segmentation is a thing. But it's gotten pretty exhausting and only increasingly so.

Fast food you can simply opt out of. My health improved due to them shifting all the "deals" to the app, and doubling menu prices. Groceries are a different thing.

It doesn't scare you that $store can decide to double their lrice because they detected a brand new phone in your pocket?

This isn't even a little hypothetical- bluetooth had to anonomyze the MAC address to stop this, and it still fails sometimes.

  • If a store does this, they will eventually be caught and lose business

    • _every_ chain store does this- from 7/11, to Hermes, to Aldi.

      It's just not usually that blatent.

      Offhand- things I expect they do: 1) as many impulse items as possible by moving freqently bought together items to opposite sides of the store. 2) overpriced items are seen first, then whatever version they want to sell (eg, Overpriced boutique chips then regular lays) 3) Send somebody over if you dwell somewhere too long so they can foist the expensive version on you.

      They'll use every method they can, and they have more methods than you can imagine. Every time I look theres a new one. And don't forget a ton of Stores are the same company and can share the data.

The idea of the price you pay could be far higher because your McSocial Credit Score is too low doesn't scare you?

I don't really care about fast food. That's strictly an optional luxury. If the experience sucks too badly, skip it. Grocery would be another matter.

I also think this hypothetical "scan to see your price" scenario is a lot worse. As things stand now, there's still a baseline price. If the shelf says $8.99 then you know that you may be able to get a better price through their loyalty program or with a coupon, but it will never be more than $8.99. In a fully dynamic pricing world where you have to scan scan to get a number at all, which is what a lot of businesses would really love to have, you'd lose that baseline. That item might ring up at $20 if the system decides I'm desperate or inattentive or just don't care. This is already possible online, of course. If it spreads to grocery stores, though, I'm going to start channelling Ned Ludd and it won't be pretty.