The amount of deep data that’s available on each and every one of us is staggering. It’s so comprehensive that companies have completely developed the ability for individual pricing. And there’s even a term used in the industry for it now: surveillance pricing.
They may come up with a better marketing term soon, but the idea is simple: Online sellers now know enough about me to potentially charge me less money for an item than they might charge someone else. Why do I use that as an example? Because my answer when I see a price is always, “That much?!” But there are convenience shoppers who are willing to pay more.
The truth is, the pricing models are now fully capable of ferreting out your shopping habits. Are you a convenience shopper? Are you someone who doesn’t really follow prices closely? Or are you going to play hard to get?
The good news is, there are ways you may be able to fool the pricing systems and keep more of your money.
Become a “UFO Shopper” to Save Money
First, do not sign in to an online account right away. Look at the price, then sign in and look at the price again. This simple step may help you.
But even better yet, my number one strategy is to not sign into an account and use private browsing — whether that’s incognito mode or whatever your browser calls it.
The goal here is to be a UFO shopper. The systems can’t price-discriminate against you if they don’t know who you are!
When you’re shopping for things like an airline ticket, a hotel, or a cruise, you want to shop anonymously first. Only then should you go back as a loyal customer with an account, who they know has traveled with them in the past. Shopping anonymously is how you ensure you’re getting the best price the first time.
When you’re shopping on huge sites like Amazon, you have to remember that they are using pricing trends against you. But you can use those same trends to your advantage!
Use a tool like CamelCamelCamel as an example. You can see the historical pricing trend on almost any item. That alone will help you a lot, because you’ll quickly see if the price they’re quoting you is much higher than it has been recently. While you may not always find discriminatory pricing on major sites like Walmart.com or Amazon.com, it’s important for you to know that this capability is out there, fully developed, and ready to be used.
The industries that use these tools most aggressively to offer discriminatory pricing based on your impulses are travel and retail. In short, convenience shoppers and people who they think have more money are going to pay the most.
Don’t Be Tempted To “Buy Up”
I want to mention the current state of income in the United States. Right now, the income disparity is larger than it’s been at most times in American history — we’re in a spike of a real split in income.
What this means for your shopping is that there tends to be a larger price gap between more luxurious things and everyday basics. So, if you’re tempted to “buy up” to a more premium version of a product, maybe you don’t. Maybe you take advantage of the lower prices that are available on the basics instead.
Save your money and don’t let the surveillance pricing systems steal your bargain!
