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Amazon Refunding The Overcharge Experiment
MDMurphy writes "Got this in the email just now. Despite reports I'd read that you had to write Amazon and ask for a refund if you saw they charged others a lower price, it seems they are letting their customers know proactively:
Greetings from Amazon.com.
Thank you for your recent purchase from our DVD store.
As you may be aware, we occasionally test various aspects of our
web site--design, layout, and other features--for brief periods to
determine how they resonate with customers.
Recently, we tested the discounts we offered on selected DVDs, so
that different discounts for certain titles appeared to individual
customers chosen at random. Because you placed an order for the DVD
"The Big Blue - Director's Cut" during this period,
we wanted to let you know that we will be refunding the difference
between the price you paid and the lowest test price that we offered
on that DVD during the test period, in your case, $1.49.
We also wanted you to know that if we conduct any price tests in the
future, all customers who order items affected by these tests will
automatically be refunded any price difference at the conclusion of
the test, thereby ensuring that they will pay the lowest available
price.
We value your business and appreciate the trust you have placed in us
by being a customer. Thank you for shopping at Amazon.com." You can see another news report about the havoc the "experiment" has played on things.
You are obviously not a math guy. Probability is important: it is not as dangerous to fly on a commercial airplane, or say, bungee-jump out of a baloon with the bungee on fire. The probability is not 50-50 on both incidents. But, by all means, prove me wrong. Back to Amazon: wake the hell up! retailers have coupons, promos, catalogs, a bazillion things customized to give different prices to different people so they can sell as much as they can at the highest margin that they can get. It's not a swindle by some "Microsoft drones", its called, you guessed it: Capitalism. Live with it or get out of the way. And what the fuck is up with the "Microsoft drones" quote? does any rip on Microsoft get a 5, Insightful on /.? What on earth does this thread have to do with MS? I mean Amazon uses Perl, AFAIK, not ASP...
Do you feel the need to attack MS to look /.-cool? is that the quality of post we are moderating up these days? sheesh...
Sarkazmo is the assumed identity of a long-time
jeko writes "Amazon.com just sent me an email claiming that their different prices for different customers are merely a mistake."
He cites email from a customer rep at Amazon:
"Finally, at any given time, despite our best efforts, a small number of the more than 4.7 million items on our site may be mispriced. Kristine Jorgensen, Amazon.com"
So which was it... a mistake or an experiment?
Josh
You know, I bought a car a while back and then found out that some people got better prices than what was marked on the sticker because they took the time to bargain with the car dealer! And at a flea market last week I bought a book for $3, only to find out that people were buying two for $5! What a rip-off! And I could throw in some things about how the internet is a bit like a bazaar, but I hear prices aren't always fixed at those things either!
C'mon people -- why is anyone getting all worked up over this thing? Amazon is not ripping people off -- they're running a business. Searching around on the Amazon might have found you a better price, but everyone who paid the higher price agreed to that price -- no harm no foul. Maybe some customers are gonna be a bit upset at not having gotten the best deal, but that doesn't make Amazon "bastards" and "crooks"...
JAMWiki Java-based Wiki engine
Maybe I'm not "getting" it, but why would Amazon conduct this sort of test in the first place?
If I were a retailer -- especially a big one like Amazon -- the only "testing" I'd do would be something along the lines of the Frank Zappa test: either you're dead or not. (Or, in the case, of Amazon: either we have the lowest price or we don't, period)
Zappa once joked (and I'm paraphrasing badly here -- if someone knows the complete context or quote, I'd appreciate it) that all the "probability" testing for crashing in an airplane or getting in accident or falling off a building is fucking absurd: the only real test for "survival" is a 50-50 chance: either you walk out the door and die, or you walk out the door and live. It's pretty simple.
I'm not a math guy, but I think about Zappa's Law lot -- especially these days when everybody is citing statistics about the chances they'll lose money, the chances they'll go out of business, the chances Napster will cut their business by X% -- whatever.
The only thing Amazon is doing by conducting the tests -- and, yes, even by refuding the money in an *enormous* gesture of goodwill and humanitarian appreciation (this is sarcasm, for those so impaired) is saying: look, we're not offering the lowest price, we're offering a *price* -- and with our price, you can take it or leave.
As a competing business -- B&N, whatever -- I'd jump on this and say, "Look, we won't fuck around with your head or your pocketbook. We'll give you the lowest price. No games, etc. etc."
To me, that'll earn my business. I don't care about personalization (contrary to what Microsoft says I *should* care about), I don't care about targetted e-mail, targetted advertising (contrary to what *sigh* even my beloved TIVO thinks) I care about the lowest price.
How come none of these places are asking me, Joe Consumer, what really matters? How come they think that if they send me advertising "targetted" to my demographic that I'm gonna think, gee whiz, thanks for the e-mail! I'll get right on your site and buy something?
How come they don't think: okay, consumers are savvy, let's not muck around with all this personalization stuff, let's just give them the goods, give it to them cheap, and make it easy to return if they don't like it.
These fucking ad men (and women) are Microsoft drones. They'll buy the latest commerce site server and think they're doing everybody a favor.
Well fuck that. They don't do *everybody* a favor because I'm someone and I don't give a shit about all this stuff. I just want the lowest prices. I don't need a "web experience". I don't need videos and snazzy graphics. I want low prices.
Talk to me, you ad men and women. Talk to me, you market testers.
I'll tell you want I want, and what (I'd bet) a good chunk of consumers want. I don't want frills, I don't want flash (Macromedia -- or the more general kind) -- all I want is a little savings of both time and money.
That will make me smile. That will make me happy. And that will keep me coming back.
Dear potential Class Action Lawsuit participant,
Thank you for your recent purchase. As you are aware, our Market-droids recently came up a plan for ripping-off our customers without them being aware of it. As we are desperately out of touch with public opinion, and woefully ignorant of illegal trading practices, we decided to implement their plan. Unfortunately someone spotted this and we're now in some really deep shit.
In an effort to place some spin on this situation, we're refunding the money that we ripped you off for. Not only that, but we promise that if you notice us ripping you off in the future, we'll refund that money too.
We value your business and appreciate your trust; after all, without your complete and total trust we'd never have a hope of pulling off anything as underhanded as this. We hope that you will continue shopping with us. Really. We need your business, 'cos we're hemorrhaging cash faster than we can possibly hope to sustain and sooner or later our Venture Capitalists are going to notice.
Hugs and kisses, Amazon.con
P.S. You're not using any '1-Click' technology in any of your software, are you?
--
The gift of death metal does not smile on the good looking.
Perhaps I'm just cynical, but isn't this just a nice PR exercise by Amazon, along the lines of, "Oh hell, they spotted us, if we give them back their cash, perhaps they'll say we're still OK people, except for that one-click thing, anyway".
*shrug*
It could, of course, be completely genuine.
I noticed that Amazon.co.uk had reduced the price of an item that I'd pre-ordered, and emailed asking them to reflect the price change in my order, which they have done.
...if this was actually an 'experiment', or if they thought they could get away with it? With all the bad press they recieved over this, I would assume the later.
Dear Amazon Customer:
Not only were we stupid to do the price adjustments, we're really sorry about patenting the mouse click. We were just kidding about that one. As soon as we run out of vulture capital, we will close our doors, shutdown our website, and donate the patent on the mouse click to the FSF.
Sincerly,
Jeff Bezos
--
then it comes to be that the soothing light at the end of your tunnel is just a freight train coming your way
then it comes to be that the soothing light at the end of your tunnel is just a freight train coming your way
People agreed to buy an item at a price. Why should Amazon apologize? I don't have to give the same price to everyone on items I sell. I think it's very admirable what they are doing by refunding the difference.
According to the Register, Amazon has had some other problems with pricing as well...seems they offered DVDs at one price and then refused to sell unless the customer paid a higher price.
Even worse, they have absolved themselves from all responsibility for a customer's privacy.
See http://www.theregister.co.uk/content/1/13210.html for details.
Any doctrine that weakens personal responsibility for judgement or action helps create a climate that welcomes an