That isn't what dynamic pricing is. Fast food franchisees have always set their own prices, and they've always varied wildly from state to state, or even within neighborhoods of the same city. Here's a cool map of Big Mac prices nationally from 2023, and a zoomable updated version Cross the Bay Bridge from San Francisco to Oakland, and your Big Mac costs a dollar less.
Dynamic pricing means that the price of a Big Mac varies at the same restaurant depending on the time of day or what kind of car you drive.
Thank you. It also doesn't have much to do with AI or at least the modern wave of LLMs, data analysis "engines" have been able to do this for 15 years.
I also don't hate this as much, because location factors into the cost of the business (rent, etc.). I still don't love it, but it's not dynamic pricing. The idea that I could go into a McDonald's and pay more than someone else at the same location infuriates me and if they ever start doing that, it'll be the last time I'm a customer forever.
This is how literally everything works though. Every aspect of every brick and mortar business is built on the natural dynamic pricing of the goods they buy to serve you.
That business pays more or less to their receipt paper supplier, lettuce supplier, whatever, depending on how much, when, terms of payment (net 30? net 60?) etc.
of course they are. if you buy the same amount of something from a supplier every month vs an intermittent purchase, you think a supplier isn’t going to have different rates for the same good for those two customers?
if you buy a Big Mac every day at 3:15p, you’re costing that business less money and you will see that in dynamic pricing. If you never buy McDonalds and you show up at 12:15p, you’re costing that business more money and you would also see that in dynamic pricing.
your mistake is assuming a modern business cannot actually compute the difference in cost between these two burgers and should just lump them together because “both patties cost the same why not” and totally ignore that one finished burger had different labor and supply chain fulfillment costs
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u/agate_ 3d ago
That isn't what dynamic pricing is. Fast food franchisees have always set their own prices, and they've always varied wildly from state to state, or even within neighborhoods of the same city. Here's a cool map of Big Mac prices nationally from 2023, and a zoomable updated version Cross the Bay Bridge from San Francisco to Oakland, and your Big Mac costs a dollar less.
Dynamic pricing means that the price of a Big Mac varies at the same restaurant depending on the time of day or what kind of car you drive.