Amazon pricing

[JohnT Fitzgerald]

does anyone have any insight, tips, or advice on how Amazon does its pricing? I'd expect changes as items go on 'sale' or as replacements become available. but it seems like day-to-day there are very slight variations.

For instance - I've been keeping an eye on the Delta dust collector 50-760...not sure if/when I'll pull the trigger. A few weeks ago I think it was 329. then it was 350-ish. then 338. now today it's 342. it just seems like an odd variation to me...

[Rob Bodenschatz]

Amazon's pricing on tools has calmed down a bit over two years ago. I remember watching prices change on an hourly basis. Drastically. Don't see that too much anymore. I got some great deals in '06-'07. I'm pretty sure they keep an eye (probably programatically) on other sellers to stay competitive.

[Anthony Anderson]

Amazon's pricing on tools has calmed down a bit over two years ago.

Thank God! They had, and still have, me hooked, by those deals in '06-07. But, I was able to get in on some incredible deals, that I otherwise would not have bought.


I'm pretty sure they keep an eye (probably programatically) on other sellers to stay competitive.

Not sure how they do it, but you can still find incredible buys, just add it to your cart, and watch the price.

[Jeff Wright]

I still see price changes without prior notice. I just purchased a PM 3520B and its price has been slightly reduced for a while now (I suppose prior to the announced May 1st tool price increase). I also bought a Delta industrial grinder that has bounced between $194 and $179 every other day or so. I usually put items in my shopping cart and then go back every so often to see if any price changes. Note: On more than one occassion after purchasing an item from Amazon and noticing a price drop, I have sent them an email asking for a credit to my account for the difference. They have done so even when a week or so after the sale. Can't beat that (but it does require you to check back and see what the current price is to see if it has dropped from the time you bought the item).

[JohnT Fitzgerald]

and now it's down to 316. LOL. well, I'll keep an eye on it...

[Rich Engelhardt]

Hello,

does anyone have any insight, tips, or advice on how Amazon does its pricing?

Yes - it's database driven.

Check this out:
http://seattlepi.nwsource.com/busine..._amazon10.html

There's lot's more to it - but I'm late for work.
In a nutshell - Amazon uses web searches and links to other databases to build typical "buyer" profiles. since they have none of the overhaed of the brick front store, they can use much of that capitol for advertising.
Their "ads" (not the ones you see here in the banners) are what other retailes refer to as lost leader items. In Amazon's case though, they can sell the lost leader for a small profit instead of a loss.

Here's what's slick about it - from a buyer's point.
With a coordinated effort, consumers can manipulate the articles offered for sale/the price of the items.

[JohnT Fitzgerald]

Interesting! and thanks for the link.

[Rob Bodenschatz]

Here's another link for ya:

http://www.frozenwarrior.com/~pricewatch/