Research has shown that people prefer to avoid losing money over gaining money. Those same feelings may arise after you learn about a recent Consumer Reports study:
“In tests in four cities across the country, nearly 200 volunteers checked prices on 20 grocery items on Instacart.
On item after item, they found significant differences. In a Target in North Canton, Ohio, some shoppers were charged $3.59 for a jar of Skippy peanut butter that others could get for $2.99. At a Safeway in Seattle, some people paid $3.99 for a box of Wheat Thins while others paid $4.89. And at a Target in St. Paul, Minn., some people were charged $4.59 for a box of Cheerios that others could get for $3.99.”
Feeling irate and vulnerable yet? New York Times reporting on the study adds:
“Groundwork’s findings are the latest example of how the notion of a single price, offered to all customers for a predictable period, is breaking down in the digital age. Companies are using sophisticated algorithms to adjust prices quickly in response to competitors’ 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.”
Most Millennials will agree that this pricing policy doesn’t seem fair. You may even decide to delete the Instacart app.
Even so, you shouldn’t, in Ramit Sethi’s words, let “$3 questions” drive your financial life. Dynamic pricing may frustrate you. But did you start using Instacart to save yourself time and hassel?
Don’t lose sight of the value you may still receive. And save your energy for the “$30,000 questions” that most often dictate your financial circumstances.
Recommended Money Reads for Millennials
If you liked this article, you may also want to check out:
About the author: Kevin Mahoney, CFP®
Hi, I’m Kevin. I’m the founder of Illumint and a financial advisor in Washington, DC. I specialize in financial planning for Millennial women like you. As a Millennial father and Certified Financial Planner™, I empower our peers to invest with confidence and flexibility. If you’re new to Illumint, I’m glad you’re here – you now have access to free personal finance tips written specifically for Millennials. I encourage you to read, watch, or listen to the ideas I share about exchanging your money for memories with your friends and family. And then when you’re ready, please send me your thoughts & questions!
