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Smart Pricing = Price Fixing?

Am I a Conspiracy Theorist Here?

         

cabbagehead

8:08 pm on Feb 8, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



A very interesting turn of events. I have been tweaking my site. I made a chance 2 weeks ago that immediately reduced my conversion rate by roughly 25%. I let it sit because I needed to obtain some data. Two days ago I reverted the code and expected my conversion rate would return. Sure enough in the first 12 hours my conversion rate popped right back up ... but after that first 12 hours and now for the last 36 hours - conversion rates have reverted back to exactly what they were at that lower rate for 2 weeks.

Is google now fixing their prices based on my *conversion* rates? It smacks of price fixing to me!

justageek

8:33 pm on Feb 8, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Is google now fixing their prices based on my *conversion* rates?

Do you use their tracking? How do they know your conversion rate?

JAG

cabbagehead

8:42 pm on Feb 8, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Yes I use their conversion calculator. I assume there's always the possibility of using such data when I provide it to them .. but I thought it was illegal to engage in "price fixing" and didn't think they'd go to that extent.

rbacal

9:00 pm on Feb 8, 2007 (gmt 0)



it was illegal to engage in "price fixing"

IF they are fiddling things for you, how do you see this as price fixing in terms of its legal meaning?

(I assume you know what price fixing means, yes?)

justageek

9:00 pm on Feb 8, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Stop using their tracking. I've never trusted that there wouldn't be a sharing of information from one side of the house to the other.

Price fixing is one thing they are not doing as that requires someone else to be involved. Smart pricing is something they can indeed do.

JAG

cabbagehead

11:11 pm on Feb 8, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



> "how do you see this as price fixing in terms of its legal meaning"

Ok - I'm not a lawyer, so I don't know about the legal definition. My understanding of price fixing is a conspiracy to affect the price of something that the open market would otherwise dictate. Usually this is two or more parties acting to articially inflate a price above what the market would otherwise bare such as what gas stations are often accused of.

In this case there is no second party I suppose since I am giving Google my data .. but the end result is the same - it would be as if my accountant was sharing my data with my supplier about what prices I could bare based on my internal performance - in order to maximize their profits from me and fix the price at a higher level. So, perhaps this is actually more shady than just price fixing if the conversion calculator is really a trojan horse spy used for this purpose.

Perhaps rbacal is right - I just need to stop sharing this data.

Whatever the case (legal or not) - this just seems really shady to me! Definitely in an ethincal gray area, if I am correct about this occuring. And actually - it is pretty darn clear that *something* happened...I guess the only question is - am I right that they are adjusting based on my conversion rates? The timing is very suspicious.

justageek

11:56 pm on Feb 8, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



this just seems really shady to me!

That's why I never use their tracking nor have I installed on any client sites...why take the chance when tracking is a commodity :-)

JAG