If you go shopping at your local shops, then you expect the prices of goods will stay basically the same. Inflation means there will be upward movement and sometimes special offers, but usually there are consistent prices.
Buying petrol is a difficult game as the price is set each day and petrol stations near each other will often change their prices to compete but there is usually at least a tiny difference in price for each petrol station you pass. You can fill your tank expecting the price to go up but it might go down instead.
Airlines have operated demand pricing for some time – the price fluctuates depending on the level of demand so passengers on the same flight may well have paid a wide range of prices for the same seats from the early bird prices to higher last minute prices.
But what about online giants such as Amazon?
Amazon operate ‘dynamic pricing’ which means they will change prices frequently depending on demand and changing circumstances – this can be multiple times in a day but is more usually once or twice a week for many goods.
The weather forecast changes and the prices of some items changes accordingly. Monday and Tuesday are the least popular days for online shopping so there are more bargains to be had whereas the weekend is more popular so the prices go up.
Anything that potentially changes the level of demand can trigger price changes.
So, how do you deal with this?
It can be difficult to know whether prices for what you want are likely to go up or down but it can be advisable to watch the price of items for a while and see if you can get a good deal.
If you find dynamic pricing to be a problem, then you can use price comparison sites and you can try viewing items you want on various days and at different times and note the cheapest day and time.
Also, to avoid the retailer setting a price based who you are and where you live, switch your browsing to incognito mode so as to be anonymous.
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