How Airlines and Other Retailers Are Robbing You Blind

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Have you been browsing flight options and noticed the prices suddenly jump in a matter of hours? In this episode, learn how companies are using dynamic pricing to their advantage, plus how to keep more money in your wallet.
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[@GrandMa-hm5mb]

My daughter got married on a Monday afternoon in the summer. We saved thousands of dollars because the reception venue was so happy for a Monday evening reception they didn't charge for "the wedding package." Also, florists and the baker did not charge delivery fees and the DJ dropped his price. We also did not want to make our guests have to give up a precious summer Saturday. Only one invitee grumbled about having to take the day off from work...Oh well! People take off work for lesser things! It all worked beautifully and there was no pressure about having to book way in advance to secure services or venues.

[@TheRealJules]

Wedding tax … we skipped the whole thing and got married by a justice of the peace in a garden at the Hotel del Coronado. Had all the beauty and romantic ambiance for the cost of the trip (doubled as honeymoon) and $30 for the JoP.

[@mhodge0890]

Very smart

[@vikieierdam5516]

Went down to the courthouse 32 years ago. $50 at the time and at the end of the day, we were married. Isn't that the point? And after 32 years, we are still married. Isn't that the point?

[@power4things]

My parents, 1948, married after Sunday night church service, church folk brought the cake, my grandfather sang, honeymooned in Rosarito Beach (from San Diego), 2 children, 4 grandchildren and a great-grandchild, and 52 years later "until death do us part ..." thanks for your story!

[@melindahunt6894]

Never herd of a wedding tax

[@JIMDAVIS-z2h]

If you think weddings are expensive, wait for the divorce bill !

[@mjs28s]

Wedding things for sure! For our wedding we went to a bakery that does all kinds of cakes. Went with a non-wedding cake, still three tiers and we put one of the wedding decorations on top ourselves. Cost something like $80 for the cake rather than hundreds. Fed 25 people cake with some left over. Want to pay premium for anything, make sure to tell the people that you are buying it for a wedding.

[@andrewsherman2398]

This is the reason to buy summer clothes in the fall and winter clothes in the spring

[@adidabax6809]

Exactly. Instead of seeing it as "ripping you off" you could see it as "I saved money." Weird that Ramsey's folks choose to see a negative.

[@power4things]

The technology to dynamically change pricing according to demand and supply chain, plus we have a complete loss of "competition" in business'. But, if it's too expensive, you don't buy/eat/go ...

[@beverlyness7954]

I was checking the price of a ticket to Japan in November of 2000, it went up $50 on the second day. I went ahead and bought it that day to avoid any further increase. Then someone I worked with told me how she got around that increase was to use a different computer in her house when she went to buy the ticket. Sure enough she got the lower price. This price hike system has been happening for years, has spread to other industries and is being felt by us in so many different ways.

[@crosslink1493]

Amazon does a similar thing if you look at an item but don't buy it on the first viewing. Even if you put it in your 'cart' then go back a few days later to purchase you'll almost always find a higher price.

[@lorettauppercue6400]

Yes, we need to get back to the venues selling tickets to,sporting events, concerts...instead if always having to FORCE you to go the ticket masters for EVERYTHING!!!!!

[@crosslink1493]

Back in the 1970s-1980s Ticketmaster was pretty reasonable, they'd charge you a flat fee over the face value of the ticket as a service charge, regardless of the demand for the show/concert.

[@davidanderson7686]

A "discount" given during slower times is the same thing as raising prices during busy times. It is just a psychological trick, making it seem better.

[@WorldTraveler6352]

What happened to the days when people set their prices that keep the business afloat while supporting the community as a whole? Why do people think that it’s a great strategy to rob you blind or jack up the prices because they think they have the power to do so? It is one thing to offer a set price that genuinely generates enough money to keep the business thriving, it is a totally different thing to be selfish and greedy. I think the world needs a heart checkup.

[@gbottesini]

In the words of J. Paul Getty: - How much money is enough? - More.

[@robertewalt7789]

It is easier to support the community when the company is making a steady profit.

[@jennifer1424]

Amusement park dynamic pricing was one of the first I thought of- Disneyland is a good example.

[@justalittlebitmo]

All of these make sense to me except the Ticketmaster one

[@slashdash5279]

This is similar to electricity usage. When you use electricity in peak hours when demand is high you will pay more as the supply of electricity goes down. Demand is high for food at dinner time so the price will be high. It is supply and demand called another thing. Too many people whine too much.

[@gbottesini]

Not the same because Electricity supply usually has a single distribution system. Higher pricing on peak is not fornprofit, it's a way to protect the infrastructure from being shut down.

[@davesrvchannel4717]

Taylor Swift could end 3rd party pricing. She has the power. Instead of her focusing to save money for her fans, she’s focused on telling her fans who to vote for.

[@jenv6846]

Not true, she has spoken out against ticket master, and I believe is at the center of the Congressional inquiry into their business model.

[@davesrvchannel4717]

@@jenv6846 Toby Keith didn’t like the record industry, so he made his own record label. She could make her own company to compete with Ticketmaster. BTW, Toby Keith gave her first record deal. When he died, she didn’t even come to funeral. I don’t know if she eventually made a public statement or not, but 4 days after his death, she had still not publicly mentioned him. She’s evil, and only cares about herself

[@johnrehwinkel7241]

You can also use this to your advantage, using multiple browsers and services. You can also get some companies to lower prices if they see you've been looking at their competitors. One company sent out a bunch of promotional emails with different prices embedded in the URLs. By hand-editing the URLs, you could get cheap or free products! It's a system they can game, but we can game it too, and we have the ultimate power to just not buy stuff that's being sold unfairly.

[@ColleenJoudrey]

The same flight from Halifax to Dublin can vary but up to $400cad in a 2 week span.

[@robertewalt7789]

One time we were coming out of a show at the Ryman Auditorium, and saw Uber price skyrocket. But we also saw an old fashioned taxi, and flagged him down, to our hotel.

[@jmln7038]

Dynamic pricing seems like a good business strategy. If I don’t like it as a consumer though , I don’t support it by giving the company my business.

[@JeanPierreWhite]

Dynamic pricing is fine IMHO. However some companies are now implementing discriminatory pricing where the price for you is different from me. That's a problem.

[@fairywingsonroses]

I don't feel like it's a good strategy when there isn't an alternative for the same or similar service.

[@JeanPierreWhite]

@@fairywingsonroses Why not? There are two perspectives here. You can view this negatively when the prices are higher. You can view this positively when the prices are lower. It's a matter of perspective. The assumption is the product or service are exactly the same, so why would you need an alternative? It's not about the product/service it is purely time dependant pricing.

[@fairywingsonroses]

@@JeanPierreWhite The main issue I have with a lot of these services is that they aren't even guaranteed. Take airline tickets for example. They can cancel or change the flight at any time, and, depending on the situation, they don't have to offer you lower pricing or a refund for the inconvenience. In fact, many of these services are non-refundable (with limited exceptions), and if the price drops, anyone who previously bought it is not offered the difference in cost as a refund, even if the service is changed or cancelled. Meanwhile, if I want to buy something like a concert ticket, there are only a few vendors that I can purchase one through (if even that many). I can't go to the venue itself or a competitor's website and get one. My only other option is 3rd party, which almost always costs substantially more. In terms of things like food, it costs the restaurant a similar amount to operate the place both during busy and slower times, so there really isn't a valid reason to offer different pricing for different times of day. There are ways of reducing overhead costs that don't require the headache of changing menu prices throughout the day. Most places offer lunch and dinner options or automate some aspects of the service to account for slower periods. And I got married last year, and the upcharge for everything was pure BS in most cases. Photographers, makeup artists, and florists charge the same, even if their portfolios indicate that their services are substandard. A prom dress and a wedding dress with similar fabric and features cost vastly different prices, and even things like catering the wedding yourself either isn't an option with some venues or it's an added charge (for a service the venue isn't even providing in some cases). It's all ridiculous.

[@rebeccareznicek3478]

Missed opportunity to say "Bad Blood" with Ticketmaster 😂

[@carolr7823]

Is surge pricing any different than giving discounts during slower times. I don't see that as any different than getting a discount by going to a matinee showing rather than one in the evening.

[@contournut5726]

It is for marketing. The advertised price is likely to be the high normal price for off peak discounts. So that feels like a deal at off peak hours. But for surge pricing they will advertise the normal off peak price, then you get to the drive through at peak time and the price is higher. That feels like being lied to. Especially since the true normal price is at peak times when people normally use the service.

[@brightpage1020]

Good morning, Rachel! Your hair looks amazing!!!! 🤩

[@matts7476]

My wedding was 1000 including the ring. 14 years strong so far.

[@grumpychoi]

I don’t know when sonic started having happy hour drink prices, but it has been as long as I can remember at least 20 years. And I definitely take advantage of that.

[@spotless304]

Use incognito mode when shopping/browsing. Only let them know it is you when actually purchasing.

[@laurat7324]

How do I do this?

[@spotless304]

@@laurat7324 If you use chrome look for the 3 dots at the top right for your menu, then go down to incognito window.

[@spotless304]

in Chrome the 3 dots at the top right will give you a menu, or use ctrl+shift+n

[@laurat7324]

@@spotless304 Thanks, I'll try it!

[@TrixieJFerguson]

I want to know how “dynamic pricing” differs from price gouging? Because, last time I checked, price gouging is illegal.

[@kurtcpi5670]

This is the basis of market economics.

[@dikdoc0079]

Charging more at times is the same as charging less at other times. But the consumers should be blatantly aware so they can choose when and if to buy.

[@jaminjosh23]

I’m an advocate for skipping fast food all together. At least in my area the service quality is in the toilet and across the board they rarely get an order correct. They’re not worth the $20/hr they are paid.

[@marysaltlife1427]

Josh, so correct and the same here in Northwest Ohio!

[@adidabax6809]

Seed oils are poison.

[@JeanPierreWhite]

Agreed. Lunch at a sit down restaurant is often way better and the same price.

[@elizabethwhiting9389]

For weddings, I don't think it should be as big of a difference as it is, but I do understand why there is a higher price when hiring vendors for a wedding vs a birthday party, etc. Since most people consider it to be a once-in-a-lifetime event, they have much higher expectations and the smallest hiccup is a HUGE deal, unlike a birthday party or such where a small mishap is unfortunate, but not as high impact. The vendors aren't just charging for their service, they're charging for all of the time they spend planning and coordinating with the couple beforehand, the emotional support, the family dynamics, potential drama, etc.

[@AndrielleHillis]

Oh, yeah. I know several people that are photographers, and they can testify that weddings are **a lot** more work (physically and mentally). A couple of them have even stopped doing weddings altogether. One of them was told they were photographing a party until they got to the venue.

[@fairywingsonroses]

I don't understand it at all. I got married last year, and many if not all vendors and artists wanted professional prices, while many of their portfolios did not have the level of quality that warranted charging those prices. I lost a lot of respect for local wedding vendors and artists for this reason. Yes, it's more stressful, but if the quality of your service isn't professional anyway, why are you charging so much for it? This goes for vitually anything else. Why charge more for a wedding cake when a similar cake is half the price? Why can I buy a prom dress for $120, but a wedding dress with similar fabric and features is over $1000? Overall, I found planning my wedding to be very frustrating, and the upcharge for absolutely everything meant my wedding couldn't be what I wanted anyway. The little things going wrong couldn't even be a huge deal at that point because I already had to change/cancel so many things to the point where what I really wanted and what I actually got were two very different things. My wedding did still come out beautiful, but it was beyond frustrating that people charged so much for everything and used the excuse that "it's an added stress" for why it was justified.

[@Emily_CM]

Oh My Word! Wendy’s Spicy Chicken Sandwich is my favorite. Chic-fil-A next.

[@SpurgeonPerkins]

Air BnB has been the worst, most obvious offender in my experience. If I look at the exact same place for the exact same dates the next day, the price is higher. Has anyone else experienced this?

[@alinatamashevich3354]

Mr. Wonderful has said on several occasions that he loves Weddings and Funerals. People lose their minds, and overspend 100X

[@christinehirabayashi9598]

I have a question what are your thoughts on a restaurant bill with this added service fee. I don't want to pay it

[@brianselt291]

Tollways, Uber and fuel prices…it happens everywhere.

[@davidwolfe7777]

Live smart, buy and make your own food. Its a lot healthier, and you know no body has spit in your dinner. My dad had a friend back in the late sixties that used to urinate in the split pea soup.

[@cameraman763]

A couple comments. Agree it doesn’t make sense, one example that been around for years is golf course greens fees. Many are surged their prices during most popular times, but the cost of the product is the same. However the single biggest industry that is costing us a lot of money is banking. The Covid spike of not using cash has made it even worse, with the credit card processing fee of 2-3%, cuts into any business profit and its being passed on to us the buyer. That only has had a major impact on the decreased value of a dollar. Use cash every where you can!

[@natehunter2961]

Uber and Lyft do this and it gets bad when the drivers game the algorithm to drive the price up

[@stevelasser3818]

Your argument is specious. A 'sale' price is an inducement for a customer to purchase inventory that has insufficient stock turns, or is obsolete. The customer is being rewarded for making a purchase of goods that would otherwise remain unsold. 'Surge', or 'dynamic' (read: 'greedflation') pricing penalizes a customer for purchasing an item which is either well priced or well positioned in the marketplace. Dynamic pricing is both greedy and short-sighted. Consumer push back against excessively high pricing will soon make a good sales position a transient one, which is to nobody's benefit. I should know: I come from a very successful, third-generation retailing family.

[@alinatamashevich3354]

Comment on Delta changing their requirements to be a Diamond level.

[@adidabax6809]

Demand-based pricing is not unfair. Do you know why you have traffic congestion at 8AM? Because the price of the road is $0. Yet, all that demand puts strain on the roads, makes the experience worse and COSTS MORE to maintain. Wendy's has to hire more during peak times to serve you. That costs $$$. Talk about first world problems that you have to wait a few minutes to save $1! Weird take!

[@zedalvea841]

Agreed, demand pricing ideal in a free market. HOWEVER is It is unfair when there is a unnatural monopoly, when supply is artificially repressed and not allowed to meet demand. Your roads example is defined as a common good so it's a little different.

[@adidabax6809]

@@zedalvea841 If roads had tolls that were set-up to do peak-load pricing, you wouldn't have the congestion. People would weigh decisions. It's the easiest example for people to see. Since it's always the same price people all want to use it at the best time for them, not for everyone.

[@jpatrickmoore5158]

You could also look at Wendy's as dropping the burger price during the off hours.

[@JeanPierreWhite]

Agreed. Two sides to every coin. Sit down restaurants have done this as long as I can remember. We have a choice. Complain or take advantage of the cheaper periods.

[@randyq3955]

Rachel, what you do not realize is the the higher Uber price at the airport during high traffic volumes does not mean the driver gets more money. It all goes to Uber. On my trip to Nashville in Feb. for a trade show, I heard about it all the way from the airport to the motel. The driver only go about 20 percent of what I was charged for the trip. Thr driver only got slightly more because it was busy. It is all about corporate greed!

[@Vermontist1]

Why would you imagine that Rachel doesn't know that? Just curious.

[@JeanPierreWhite]

@@Vermontist1 Why would you imagine the driver doesn't benefit? The whole point of surge pricing is to attract more drivers to meet demand, and of course make more money. Some drivers focus their driving time to surge periods only.

[@melindahunt6894]

I got 5 concert 1 comedy ticket for 105.00. Look for the deals

[@laurat7324]

Amazon has different prices for different people. I have compared prices when I am logged in vs logged out as well as compared to my sister's prices.

[@JeanPierreWhite]

camelcamelcamel is your friend in combating Amazon pricing.

[@shobull8695]

Evergy electric and spire gas energy have been doing this for years now.

[@laundrygoddess4]

Wendy's doesn't do demand pricing where I live. I believe they aren't allowed to. Hotels and airlines though... It's ridiculous!

[@adidabax6809]

It's called supply and demand. There's a limited number of hotel rooms and airplane seat LOL! Guess what? Not everyone gets the best who doesn't pay the cost.

[@AndrielleHillis]

Actually, it makes total sense that the same hotel room would cost more on a Saturday night in June than on a Tuesday night in October. It's basic economics.

[@laundrygoddess4]

@@AndrielleHillis I'm not saying it isn't making sense. But it is a rip off if I stay Wednesday and Thursday and it's 100 bucks but my Friday stay is 300. This video is about companies changing fees to rip you off. That's an example of it

[@tanjacavlovic8053]

Aaah... that's why people organise party, invite friends and then: surprise! It's a wedding. Smart.

[@AndrielleHillis]

And I've known some photographers that will just pack up and leave if that happens, or refuse to take any pictures until the client pays the wedding rate. There's a reason why photographers charge more for weddings.

[@donnanorris4733]

I had a marketer call trying to get me to take a HELOC on my home. I just asked - have you ever heard of Dave Ramsey? They hung up on me. I had a good laugh :-).

[@backcountryFLcyclist]

Dynamic pricing hurts the lower and middle classes while trying to maximize profits. Upper middle class and upper class can afford to pay for the increase prices regardless.

[@JeanPierreWhite]

Dynamic pricing cuts both ways. If you are smart you will pay less by choosing when you buy.

[@habbadabbado5765]

This no difference than restaurants charging different amounts for the same dish at lunch vs. dinner time.

[@AndrielleHillis]

Yeah, it's like Rachel has never heard of a "lunch menu."

[@JeanPierreWhite]

@@AndrielleHillis Or happy hour. We live in times when folks get outraged at life as usual. I would have preferred Rachel focus on discriminatory pricing where pricing varies based on who you are. She mentioned it but it should have been the focus of her concerns.

[@stevelasser3818]

Dynamic pricing is a euphemism for gouging. Is my hope that all businesses participating in this latest form of consumer ripoff suffer a substantial loss of business, never to be replaced.

[@JeanPierreWhite]

I suggest you never go to a bar they have been practicing dynamic pricing for decades. Happy Hour. Oh yeah don't eat out either. Lunch menus are cheaper. That's dynamic pricing. Instead of complaining about the high price of surge pricing why not focus on the discount end by buying when it's cheapest?

[@kimsinthe80s]

Corporations using algorithms to set prices is the future, unfortunately. It really sucks. Corporate landlords are all using the same app to set rent prices and the app will actually punish users for setting a lower price than everyone else. Thus, reducing competition. Since there is so much monopolization in the meat industry, they are also using an app to set higher prices on meat. Hotels are all using a similar app. Everybody just wants more and more of your money. Very frustrating

[@polemarch1]

Hurt those who hurt you

[@leisure057blank3]

You have to go to Wendy’s drive through since they won’t open the dining room. I understand though, the homeless.

[@tduck828]

The dining is open in my area but they don't clean. Its gross.

[@DIYDaveOK]

December wedding? I thought my wife and I were the only ones who snookered themselves into such a thing...(Dec 23)....wouldn't do that if i had a choice

[@eddiee2371]

I'm sorry but, no malice intended at all, but have you just arrived in the U.S? 😎Supply and demand is an interesting economic phenomenon. ie Flowers rising in price on Valentine’s Day. But that isn’t natural supply and demand. That's gaslighted to us to justify the price. The things that you speak of have been a way of life. You might call it greed, but it's really just cultural. And very doubtfully will it ever change. Whether purchasing sales or service, just think of it as you're going to get ripped off. Just find the guy who'll rip you off the least😊.

[@antonialovesyou4462]

Uber is talked more so I use Lyft and I get constant "you have % off rides till this date"

[@leisure057blank3]

How do you get Lyft to work. I gave them a cc number and they want my bank account number. I don’t care what the percentage off is. I was gonna use them. I know my credit card is good.

[@Debbie-Savings]

@@leisure057blank3yeah why would they need both? When paying for things you want online, it isn’t required to give both in order to pay for what you’re purchasing?

[@DerDunkleParabelschwurbler]

Im against Dynamic Scamming

[@JeanPierreWhite]

That's OK. Just don't drink or don't eat. Happy hour and lunch menus are a modern day scurge. Wait, it's always been that way. Hmmmm..

[@catc1238]

Stop shopping at these places

[@Sarahhannahtx]

As a former Lyft/Uber driver THANK YOU!! Driving professionally is very stressful and requires extra caution. Unfortunately because I lost money driving ride share. I had unexpected repairs on my vehicle, riders damaging my vehicle, I was required to buy extra insurance and even though I’m no longer driving for ride share my regular car insurance was just increased!! The insurance company said I drive to much so they increased my insurance an extra $20 a month. I was also threatened and disrespected by so many passengers. I even had to call the police on a passenger after she threatened me and refused to get out of my car.

[@joeriveracomedy]

Wedding? No. Blue Harvest festival.

[@joannelamar6389]

I tried to get the free trial for every dollar but I would have to agree to let them charge me after 2 weeks and if I forget to cancel. My fault. You just had a video about unfair marketing practices and this one is a ney for me. I avoid them because that is how they get you and it is not a “free” trial if you need to agree to a payment method. I enjoy your videos but my trust in you just took a hit. Sorry. 😩

[@teenindustry]

It’s capitalism. America does not put many rules in place and monopolies do what they want

[@adidabax6809]

It's reality. When someone wants more of your time than you have to offer, you have to charge more to get help.

[@JeanPierreWhite]

You are right. Bars should be prevented from offering happy hour. Restaurants should be forced to charge dinner prices at lunchtime. Shops should be prevented from discounting products at Thanksgiving. It's all capitalism and needs to be stopped. We all should demand we pay more all of the time. /not.

[@7gfh7]

I thought DeleteMe was Dr. Kevorkian's app 🤣

[@joannelamar6389]

I tried to get the free trial for every dollar but I would have to agree to let them charge me after 2 weeks and if I forget to cancel. My fault. You just had a video about unfair marketing practices and this one is a ney for me. I avoid them because that is how they get you and it is not a “free” trial if you need to agree to a payment method. I enjoy your videos but my trust in you just took a hit. Sorry. 😩