Amazon prices have been a mystery to me for a while.
Why do the prices of the same item rise and fall? Supply and demand? What’s going on?
Enter the number crunchers.
Boomerang is the go-to pricing adviser for Amazon, using sophisticated software to recommend prices.
From an article at recode:
Boomerang, founded by Amazon veteran Guru Hariharan, makes software that tracks prices on shopping sites that compete with its clients, then recommends price changes dynamically. Those changes are based on rules its clients set about which products to match prices on and which to boost higher or drop lower than a competitor’s to boost profits or sales, respectively.
The Psychology Behind Good Deals
They give good deals on big ticket items and make up the profit margin on other items. Kind of like loss leaders in grocery stores where some items are good deals, but the mark-up on the rest takes back your savings.
How does this work? Say you bought a tv at Amazon for an amazing price. The accessories for that tv are priced higher than what you could get elsewhere. You are so happy with your good deal that you don’t think twice about other things you buy at Amazon. At least that’s how most people think.
We are creatures of habit and retailers know that. We are also pressed for time, so we don’t research prices when we need something quickly or if it’s not a big ticket item. If we have AmazonPrime, we know we can get an item shipped free in a couple of days. We do like to get things done quickly.
How to Beat the Amazon Pricing System
1. Get in the habit of comparing prices of 2 other sellers
2. Check at your local discount store for items that are not big ticket items. You can phone them for a price check to save gas and time.
3. If you don’t need the item right away, use Camel Camel Camel to buy the item at Amazon when it’s on a flash sale. Click here to see how easy it is to do this.
Try these tips. Your budget will thank you!