This week Wendy’s unintentionally stirred up some trouble as headlines popped up online that the fast-food chain was testing “surge pricing” similar to Uber where they would charge more for food when demand was highest. The chain quickly backtracked with the relatively bone-headed explanation that they were actually using it to offer “discounts during slower times of day” … which is pretty obviously a sneaky “heads I win, tails you lose” sort of argument.
Still, the story struck a chord because it taps into the fear that we may be headed toward a future where everything will be dynamically priced. Some think this could bring lots more friction into any buying experience (should I buy now or wait?), while others predict that consumers will learn to love it. There is an opportunity here too.
I recently purchased an airline ticket (a category where we are accustomed to minute-by-minute price shifts), but instead of buying directly from an airline, I purchased from my credit card’s travel booking tool. As a result, I also automatically received ten days of “price protection” where I would get a refund if the price dropped. In a world with dynamic pricing, the retailers or financial providers who offer these sorts of protections will win. And consumers may be increasingly training themselves to use them in every situation possible.
