Your " Smart Pricing " Might Be Asking for Trouble

Last week , I realized the pricing plugin I use was quoting different prices to different customers . I broke out in a cold sweat .

Many of us running small businesses like to use those " smart pricing " tools — adjust ing prices based on browsing history , purchase history , or even device type . Sounds fancy , right ? I thought so too . Maryland just became the first US state to ban " sur veillance pricing " in grocery stores . Simply put : you can 't quote a different price just because the system knows who you are , where you live , or what you bought last time .

How This Connect s to Us

My friend Aj ie , who runs an e -commerce biz in Hang zhou , showed me his phone at Starbucks last month . The S aaS pricing tool he used had automatically h iked prices by 8 % for returning customers because the algorithm decided " regular s are less price -sensitive ." He only realized it after getting three complaints . I 've fallen into this trap too — last year I used a " smart quoting " tool that had a default setting to adjust prices based on the customer 's email suffix . . com addresses got higher quotes , . edu got lower ones . I had absolutely no idea until a client sent a screenshot asking , " Why is the price different for others ? " That level of embarrassment ? I never want to experience it again .

Do This Today : Check Your Pricing Logic

Rep licate cost : $ 0 + 30 minutes + technical barrier is just being able to log into your tool 's backend and find pricing settings + first step : open the pricing /qu oting /e -commerce tool you currently use , look for " dynamic pricing " or " personal ized pricing " options , and see if they are enabled by default . Not sure if you 're using one ? The easiest way : visit your own store or quote page using two different emails and different devices , and see if the prices match .

Advice by Stage

Just starting out : You probably aren 't using these tools yet , so don 't stress . When you do pick a pricing tool , just keep an eye out for any default check marks for " personal ized pricing ."

Have 1 - 2 clients : If you 're using any quoting tool , I 'd suggest spending 30 minutes auditing it . If you find differential pricing , just turn it off and be honest with your existing clients : " We found a system glitch and have standardized the price ." Most clients will understand and might even trust you more .

Scaling up : This is worth taking seriously . If anyone on your team is using dynamic pricing tools , I recommend making a list and auditing them one by one . Regulations like Maryland 's are only going to increase , and compliance beforehand is way cheaper than putting out fires later . Not everyone needs to check their tools right this second , it 's fine if you don 't do it today , but you 'll have to look eventually .