Do you ever wonder why you are receiving spam and advertisements from some businesses from which you may have an interest in purchasing?
Alternatively, have you wondered why in one day that you view a product or service, but when you went back to purchase that item, the price increased within hours? Dynamic Pricing or Demand Pricing creates these fluctuations. While the theory has been around for many years, with the increased use of data analytics and artificial intelligence, dynamic pricing has now become a major factor in what prices you pay for items purchased through on-line shopping.
What it Dynamic Pricing
Dynamic pricing is a combination of artificial intelligence and computer algorithms to identify when prices should increase or decrease. It is why you find during the same day prices of the same item you identify may fluctuate multiple times at the same store. I must point out that many businesses use this system which is legal and different from price gouging. This system monitors your online behavior, customizing cost and tailoring prices to your shopping and purchasing habits. The same systems and data analyze the way you make financial decisions and inform pricing decisions.
How it Works
According to Consumer reports in December of 2025 Instacart conducted an AI experiment without consumer knowledge. The experiment showed Instacart users the same product, at the same store, during the same shopping session, but listed at different prices. The price fluctuated as much as 23% around the grocery item, and consumers found themselves facing prices and options based upon their patterns and habits. When word of this experiment became public, Instacart abandoned the platform and targeting consumers. Instacart, however, still uses surge pricing during peak demand seasons for certain products. In other words, everybody would not pay the same price for the same item at the same store.
Airline tickets pose a great dilemma regarding dynamic pricing. When demand slows, then prices decreases and vice versa. Airline prices are grouped by buckets, so when those buckets sell out at different prices, the remaining prices are grouped and tagged to a higher rate. Therefore, if you fail to purchase at the lower rate, the next time you visit the site for the same item, the price may have increased for you and not anyone else.
Protection Strategies
Businesses may increase prices based upon demand or anticipation of demand in the future. For example, sellers and retailers recognize that when a holiday is coming, they can set a premium on the items for those who purchase late. So, protect your wallet, and shop defensively by clearing out your browser cookies where they store your shopping data and habits. If you activate your incognito or private mode in your browser, your search history falls off when your session is finished. In other words, leave no trace of your shopping habits for retainers to follow and target you with different prices. One study revealed that lower online retail prices hover between 6:00 a.m. through noon, and that Tuesday mornings are best for shoppers. In general, shop weekdays rather than evening and weekends when prices inch higher. These strategies counteract AI and dynamic pricing, and help lower your spending cost on items.
THAT’S WHAT’S UP!
Today’s What’s Up is about two congressional business business proposals if enacted into law that will impact your finances. The first of these proposals is a cap on your credit cards interest rates. In general if interest rates are capped on credit cards at 10% as being proposed, that would be good for the consumer. However, it would also mean that many peoples’ line of credit will be reduced and establishing credit will be more difficult. A University Vanderbilt study showed that if credit card interest rates were capped at 10%, the average credit card holder would save approximately $899 in interest fees annually.
The other proposal, if approved by congress, would allow you to withdraw money from your retirement or 401 (k) as a downpayment without incurring any penalty or having to payback the money. This could make it easier for individuals to purchase a home. Keep an eye out for these proposals as they go through congress. And that’s what’s up!
Ruthven R. Phillip, Esq., is a tax attorney, Stewardship and Philanthropy Ministry Assistant, and CEO of Give2Getrich, LLC. Give2Get Rich, LLC 2026 All Rights Reserved. Any distribution or reproduction of part or all of the contents in any form is prohibited.
