Why dynamic pricing is becoming the rule, not the exception

"Remember when a gallon of milk cost the same for everyone who walked into the store? That quaint notion is rapidly becoming as obsolete as the paper price tag itself. Retailers frequently use people's personal information to set targeted, tailored prices for goods and services-from a person's location and demographics, down to their mouse movements on a webpage. We're witnessing the emergence of a pricing ecosystem where your browsing history, zip code, and even the speed at which you scroll through a web page can determine what you pay."

"Companies like Revionics, PROS, and Bloomreach are building the infrastructure for a world where pricing becomes as personalized as one's Netflix recommendations. The Federal Trade Commission found that the intermediaries worked with at least 250 clients that sell goods or services ranging from grocery stores to apparel retailers. This isn't a niche practice-it's becoming the operating system for modern commerce. Consider this scenario from the FTC's findings: A consumer who is profiled as a new parent may intentionally be shown higher priced baby thermometers on the first page of their search results."

Dynamic pricing that tailors prices to individual consumers is shifting from niche application to mainstream retail practice. Personal data including location, demographics, browsing history, and even mouse movements are used to set targeted prices. Technology firms such as Revionics, PROS, and Bloomreach provide infrastructure enabling this individualized pricing across many retail categories. The Federal Trade Commission identified intermediaries working with at least 250 clients, indicating broad commercial adoption. Algorithmic targeting can exploit vulnerable moments, for example showing higher-priced items to consumers profiled as new parents. Regulators are actively working to define appropriate guardrails for these practices.

Read at Fast Company