Variable prices are crazy-making

Price jumps all over the place

[buckworks]

Earlier this week I ordered a pair of shoes from Amazon.ca for $28.45, a great price. There were two pairs left. I thought about buying both, as my size is sometimes hard to find, but I didn't. I bought one pair and added some sewing tools so the order would qualify for free shipping. So far, so good.

Later I started having regrets. I should have ordered both pairs. I wonder if the last pair is still available.

It was and is, but the price has gone up. As I type this it's $122.93.

Same seller, same shoe, same size, same color ... but quadruple the price since Wednesday?

Sigh ...

[RhinoFish]

If it's data-driven arbitrage at Amazon, it makes total sense (to do).
If it's a store trying to build a brand, it's biz suicide.

[not2easy]

That's incredible, but I've seen it too - although with smaller gaps.

Since there were only two pair left, they needed to reorder and wanted to get their ROI off the first few pairs sold?

[buckworks]

If it's data-driven arbitrage at Amazon, it makes total sense (to do).

Please say more about that. Help me understand better than I do.

The seller was Amazon.ca itself, it wasn't fulfilling for another merchant.

[tangor]

These things are often simple errors in setting up the product entry ... chit happens. A takes the loss for the error (as sold) and makes the correction thereafter ...

[engine]

That's an incrddible difference.
I've seen a number of items at ludicrous pricing, and I wonder if it's a genuine error.

[ken_b]

I just got home from a 4 week road trip and experience this "variable pricing" on hotels. it's nuts!

Often if the first night was $150.00 the second night was $200.00 or MORE!

In one case I'd stayed at a hotel and on my return trip 2 weeks later the rate doubled for the first nith and was worse for the second. Those were mid-week rates, not holiday or special event..

The hotels assured me they had no control over this, it was all computer driven from the central reservation system.

However I did find that they could adjust the rate down on checkout if there was a "good enough" reason. Not hard to find when the house keeping was so bad we had to change rooms or the TV didn't work or the plumbing leaked in the room above us, etc, etc. etc.

I took to telling these mid-range (priced) places they'd make a great Motel 6, at a motel 6 rate..

[engine]

That's crazy, ken_b, time to stay at family owned businesses, eh!

[RhinoFish]

Supply and Demand... if you're the only seller with the item, up go your prices. The marginal profit difference might take, in this example, a $5 profit and turn it into $136... like selling 27 pairs at the usual price. Their are often high costs and risks to holding inventory nobody else has, the rewards (imo) should be high as well. PS, this is not a biz model I practice, it is not steady and reliable, nor is it easily scaled.

[JS_Harris]

When selling on Amazon you don't want to run out of the product because if Amazon was featuring your page before they won't be moving forward. By raising the price you can maintain your place within their link structure so to speak, at least long enough to restock. It's better to raise the price by a large amount on the last unit than to sell out or you have to start all over and rebuild your exposure level. Ideally the last unit doesn't sell until you restock, you don't need "too expensive" reviews.

You should have bought both.