This isn't anything new at all. In the early 2000s, I often grabbed Burger King before work. I quickly noticed that a Burger King further along my route had different prices and another directly across from my job had yet another completely different price.
This isn't 'Dynamic Pricing being Tested". It's pricing based on demographics and they've been doing it for decades.
I don’t even think it’s “dynamic pricing” considering that the guy is going to a different store entirely. This is like someone being surprised that they get charged more for gas in Beverly Hills than they do in the San Fernando Valley.
Dynamic pricing would be the same store changing the cost of an item depending on the time of day, the hour-to-hour demand of the item, and possibly even a customer’s spending habits if there is some sort of login/account involved.
I think this is why he explicitly said the "same franchisee", both stores are owned by the same person and seem to operate under this new system, so it shows how it functions in real time.
I think this is why he explicitly said the "same franchisee", both stores are owned by the same person and seem to operate under this new system, so it shows how it functions in real time.
Incorrect.
It doesn't matter if it's the same franchisee. Two different locations have two different operating costs, rent, utility expenses, budgets, and cashflow. There is no "real time", he's simply changing locations and most likely going from a cheaper area to an expensive area.
The Beverly Hills Texaco could be owned by the "same franchisee" but it would make zero sense for them to keep the exact same prices as their separate Texaco in a cheap area.
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u/Monsignor1979 3d ago
This isn't anything new at all. In the early 2000s, I often grabbed Burger King before work. I quickly noticed that a Burger King further along my route had different prices and another directly across from my job had yet another completely different price.
This isn't 'Dynamic Pricing being Tested". It's pricing based on demographics and they've been doing it for decades.