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==Harbor Freight already knows it's customers are cheapskates and Whole Foods already knows it's customers barely look at the prices?== If this is how you thin
by take_a_breath 6y ago
==Harbor Freight already knows it's customers are cheapskates and Whole Foods already knows it's customers barely look at the prices?==
If this is how you think pricing decisions are made, I don't know what to say.
On the one hand, we have the lived experience of increasing surveillance and targeting, an investigative article discussing it, and long, documented history of data investments from large corporations.
On the other hand, we have speculation that it's all FOMO.
You don't run pilot programs and eight-year roll-outs of things you aren't taking seriously.
- grogenaut 6y agoHarbor frieght sells the same shit for years at a time. Their sales are always rotating. As a customer I basically have enough info from 3 months of their ads that I have 0 fomo anymore and also I have a good idea of what the price on an item should be. So essentialy all of their targeting taught me how to maximize them. Also due to any lack of slack in their product line, I don't have anything I'm missing out on. So basically, sell me latex gloves for <$7 or I'm not coming in. Magnetic screw trays for $.99 or the bigger ones for $1.99 or not coming in. I can wait literal years for that motorcycle lift to drop to $250 instead of $475.
- clairity 6y agoin other words, they've successfully segmented you and created a loyal customer, with a bonus of inventory management reliability. there's nothing wrong with that--i do it with my local grocery/big box stores too.
- grogenaut 6y agoI guess that depends on how you define loyal. If I need a consumable tool I'll check there and amazon. Other than that I never go there. So loyal I guess?
- clairity 6y agoyes, loyal doesn't mean exclusive, just that it's on your short list, which is immensely better for a business than not being on the short list (exclusivity is an unrealstic expectation anyway).
- MegaButts 6y agoI hear this all the time. "All the smart guys are spending money on it, it must be valuable!" You could use this logic to invest in real estate in 2007. Or you would've been eager to invest in WeWork had their IPO not been fucked. You would also believe self-driving cars are a good idea, but I'd bet my life savings against it knowing what I know. Don't assume you're playing the same game as them when you can't actually provide any data that what they do works. Where is the actual "X dollars of surveillance turns into Y dollars return" data points? You're just providing speculation no better than the person you're arguing with, and honestly your argument is less compelling.
- texasbigdata 6y agoIt’s probably more helpful to think about it at the margin: starting from some current point equilibrium for some spend $X what is the incremental lift $Y? Because that lens probably more accurately reflects a real purchase decision.
- jxramos 6y agoHow much is the potential of loss prevention anyways? I've seen tangible effects in store where certain products are behind glass shelves and you must get permission to purchase one and then it goes in this funky plastic box you take with you to checkout, sometimes right around the corner by the glass cage. I'm assuming theft is growing to have responses like that enacted which are incredibly inconveniencing especially when there's no affiliate nearby. Knowing I'll burn up a bunch of time waiting for one of those lockdowns to be opened I usually order online and pickup in store those items I know are locked up.