Disclaimer

The content of this blog is my personal opinion only. Although I am an employee - currently of Imagination Technologies's MIPS group, in the past of other companies such as Intellectual Ventures, Intel, AMD, Motorola, and Gould - I reveal this only so that the reader may account for any possible bias I may have towards my employer's products. The statements I make here in no way represent my employer's position, nor am I authorized to speak on behalf of my employer. In fact, this posting may not even represent my personal opinion, since occasionally I play devil's advocate.

See http://docs.google.com/View?id=dcxddbtr_23cg5thdfj for photo credits.

Sunday, March 04, 2012

Regional Pricing

Interesting observation about regional pricing differentials:

I am purchasing bookshelves.  Google Ikea, found yellow and green Billy bookshelves with glass doors for 79.99$.

However, in Portland they are being sold for 99$, with advertising that pushes them as University of Oregon "Ducks" colors.

Same part number. Not available for website purchase.

Non-painted equivalent bookcases - birch, black, brown - are 249.99$

Called Ikea. Confirmed that they are for sale everywhere except Oregon at 79.99$. E.g. Seattle.  But 99$ in Portland. Product being closed out by April 1st. Fellow I talked to on the phone says that he has never seen a local price higher than the website price.  But We can guess what is happening here: an Ikea store manager seeking to take advantage of Oregon Ducks fans possibly being more willing to pay a premium.  Or, conversely: somebody tried to make an Oregon Ducks special, and is now closing it out, with an especially large discount outside of Oregon.

Myself, I did not go the UofO, so I would not pay a premium.  I'm just looking for a good deal on glass fronted bookshelves

Marketing classes teach about price discrimination.  It's interesting to see it in practice, as a consumer.

... Woah, prices for this family of bookcases are falling all across Ikea's webpages, since I looked at them last night.

1 comment:

Andy "Krazy" Glew said...

They are now for sale at 79$ for green and yellow.

Vs 49$ without the glass dioor, white. 79$ without the glass door, circa 50$ for the glass door...