Surveillance Pricing
TAKE THE QUIZ
If you thnk you got it down… visit the bottom of this blog and take the SURVEILLANCE PRICING QUIZ.
If you read my book, you would know that I discussed our need to look wealthier than we are. We purchase items like fancy cars, jewelry, clothing, and such that we believe makes us look and feel better. We’re even willing to go into debt to create a status we can’t afford over time.
Well, now it’s going to cost you even more for that status symbol. You see, Surveillance Pricing is a way of pricing out a product or service based on information and algorithms about you. While you may pay $500 for a plane ticket, another, buying at the very same time, might pay only $400 for the same flight sitting right next to you. And this has been going on for years.
HERE’S HOW IT WORKS
Third party broker and algorithms track your habits such as browsing on a computer, what you look at, how often you look at that product or service, and can even tell if you’re price comparing on another site.
It can tell where you’re looking from, and you can bet the price will be different if you’re in Brentwood LA or East St. Louis. That new iPhone you just got, if you’re shopping on it, that is information stating you’re likely to pay more as well. Are you a loyal customer who likes to buy premium products, or your first time on that website? Even your purchasing history and your mouse movement on a site can be used.
Algorithmic analysis will use AI to gather this information and more to assess your particular price sensitivity. In other words, what are you willing to pay for whatever you’re looking to buy. Oh, and all this happens in real time, and a price adjustment is instant.
Ever wonder why that airfare never seems to drop as you check it every day? Yes, airlines use this pricing method, as do retailers, and rideshare/delivery apps to name a few.
So, think twice before you sign up at the fast-food chain to get that free burger or sandwich occasionally, or the clothing store to get the instant discount, or any place you spend money so you can enjoy some perk. Know that your information and spending habits are being tracked and used to determine what you’re willing to pay in other places that use this method of pricing.
This is very different than a more traditional pricing model called Dynamic Pricing where a price change is determined by supply, demand, or time. This is more of an implementation style of pricing that shows higher flight prices based on what expensive device you’re looking on, or those retailers using electronic price labels they can change at any time.
This is a game changer as it appears to undermine consumer expectations on fairness, and one could argue it amounts to a violation of state consumer protection laws. And indeed, some states are starting to fight it like Maryland’s new law against this type of pricing for groceries coming this October. Even the federal government is looking at ways to stop or control this form of pricing, but it’s a slippery slope as enforcing anything like this relies on interpreting privacy rules. However, there is a proposed bill called the One Fair Pricing Act that is an attempt at banning personalized pricing based on surveillance data. And while the UK’s Digital Markets, Competition and Consumers Act of 2024 permit penalties for hidden or biased pricing, you still have the burden of proof and enforcement.
So, what can you do to avoid this type of pricing happening to you? You can start by deleting your cookies and cache, using a VPN to hide your location, check prices on different devices (retailers may only target certain high-end devices), or you could go incognito by browsing in private mode. But keep in mind there are arguments to any of these working.
It goes back to a quote I use in my book: “What you are not aware of, controls you. What you are aware of, you control” You really need to read my book.
OUR MINDSET ON MONEY
It’s Easy to Control, So Why Don’t We?
Money controls most of us, and I’ve been wondering why we let this happen. This book dives into how we can gain control of our money and therefore enjoy more of what life really has to offer. It is not about what to do with each and every dollar we make as it is more about our relationship with it. Money affects us from birth to death and yet we’re taught that it’s taboo to talk about it. And therein lies the rub, if you aren’t supposed to discuss it then how are you ever going to learn about it and take control? In these pages you’ll learn about the many financial challenges that you will face at some point in life, and you’ll be better off knowing what to expect and how you can then choose to deal with it. In other words, how to take control.
There’s an old saying I believe in that states “If you want to understand what’s going on, then just follow the money.” Problem is, most of us can’t.
It’s not your fault, we’re not supposed to talk about it, and we’re not taught anything in school and rarely at home. As a financial advisor I learned that most spouses rarely talk about two things, money and sex. When I’m in front of groups I would say that I’m here to help you with one of those. But the reality is that if spouses aren’t talking about money, they certainly aren’t talking to their children about it.
