Thread

McDonald's push to have AI price your Big Mac

62 points · 38 comments · Betelbuddy

SMAAART · 1790719362 · focus · HN ↗
> One pricing factor supercharged by AI: an estimate of how much each store’s patrons are willing to pay.
How is this any different from businesses who do not have transparent pricing? E.g.: Enterprise SaaS; consultancy; architectural materials.
1. Borborygymus · 1790720739 · focus · HN ↗
  A meal is a pretty simple fixed-cost item from a retail outlet, not a service with a complex set of dependencies and shifting requirements. The cost of the meal is predictable to the seller - dynamic pricing has only one purpose - gouging customers.
  If SaaS/consulting/architectural firms are engaging in price gouging of their customers, that is not an argument to bring the same to the fast food market.
  1. ghostbrainalpha · 1790723335 · focus · HN ↗
    Counterpoint: Restaurants have ALWAYS had dynamic pricing. It is called "Happy Hour". Dynamic pricing for an eatery serves an important purpose besides just gouging the customer. It moves customer traffic away from the intense surge at standard breakfast, lunch and dinner times which is a hard problem for businesses to work around.
    You DESERVE a discount for patronizing them during their slower periods.
    gdulli · 1790723617 · focus · HN ↗
    There have ALWAYS been projectiles but when guns came along we had to treat guns differently. Scale and magnitude and context matter.
    unrented7977 · 1790732129 · focus · HN ↗
    A discount is quite literally the opposite of what's happening here.
    therealpygon · 1790808235 · focus · HN ↗
    Guess that is a matter of perspective eh? If they say a Big Mac meal now costs $20 normal price but the price is being dynamically decreased based on order volume to attract customers at off-times for a lower price, does this Kohl’s “every weekend is a sale” model suddenly make everything feel better?
    euroderf · 1790733457 · focus · HN ↗
    A Happy Hour is publicly priced in advance. Not so "dynamic".
    schiffern · 1790742375 · focus · HN ↗
    Yep, the overarching term they might be looking for is price segmentation. Coupons, matinees, college/senior discounts, etc
    <a href="https://www.joelonsoftware.com/2004/12/15/camels-and-rubber-duckies/" rel="nofollow">https://www.joelonsoftware.com/2004/12/15/camels-and-rubber-...
  2. skeledrew · 1790760071 · focus · HN ↗
    The "cost" of anything is determined by supply and demand. Nothing fixed about pricing; it was always an arbitrary affair of "buy low, sell high" at every level. It's the very essence of Capitalism.
    Government regulation of course exists, but is a separate thing.

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