|Dog Runner Pant, currently $69, were $49 earlier today|
|Run with Rover Pant, bouncing between $49 to $69|
"They're experimenting," notes Daniel Green, president of Cosmic Shovel Inc., which owns price tracking site camelcamelcamel. "They will raise the prices, seeing if people will purchase, then they'll drop them back down... They're testing the waters to see what people are willing to pay."
Mohammed, the consultant, adds: "What they're really trying to do is find pockets of opportunity, where they can change the price to make the highest profit margin or sell the most amount of products."
Interesting paragraph on the pitfalls of dynamic pricing. Good quote: "Consumers who pay higher prices for a new phone or appliance will feel cheated as they see prices go down on something they just bought. Apple experienced this backlash with its iPhone when it dropped prices by $200 just a few weeks after launch in 2007. They had to make amends with consumers." That is exactly what we saw happen today when the Boxing Day prices got slashed late last night. People were pissed and lit up the lululemon Facebook page.