A short time ago, prices were set to change Wednesday’s evenings, in time for the flyers which were delivered on Friday newspapers for the bulk of shopping was done on Saturday. The retailers had people to change the signs of the products and for the most part they were fixed until the process happened again the following week. Then came electronic pricing and now days prices can change any day.

In an article by Ben Casselman of the New York Times News Service, the changing of the prices is happening on a constant basis.

The notion of a single price offered to all customers for a predictable period, is breaking down in the digital age. Companies are using algorithms to adjust prices quickly in response to competitor’s offers and consumer behavior. Dynamic pricing strategies in which companies raise prices during periods of intense demand, have spread beyond sectors where they have become familiar, such as air travel and ride-hailing services, to other parts of the economy including restaurants and retailers.

Alberto Cavallo, a Harvard University economist said high inflation after the pandemic accelerated the trend by encouraging companies to adjust prices more quickly.

In a call with investors last year, Fidji Simo, Instacart’s CEO, said the technology from Eversight, a software company which uses artificial intelligence (AI) to help grocery stores and packaged-goods manufacturers set prices. Mr. Simo said the technology helps retailers dynamically optimize their pricing both on-line and in-store to really figure out which categories of products a consumer is price sensitive on versus less price sensitive on and really adjust their prices based on that information.

At the present time, the information is not personal but based on aggregate amounts of information, but in the future who knows? will it cost you more?

Linking to dividend paying stocks, technology brings change and change means different expectations as a consumer and profit maximizer. For the consumer it can mean every retailer is more competitive for your dollar or you will be charged prices to reflect your value as a consumer. To the profit maximizer, it means ensuring the consumer perceives value while at the same time as fleecing them as much as possible (hopefully there is a middle ground) to be able to make a profit and pay dividends.

There are more questions than answers, till the next time – to raising questions.