The future is personalised pricing

But this isn't necessarily a bad thing.

On a recent trip to Kenya I found that the amount you get charged for a bus ride depends mostly on how badly you look like you need one. The longer it you've been waiting, the more bags you have, the more irritated the look on your face, the more you'll end up paying.

This is not a great system for commuters, but is one that seems to be  coming in to force online. The Office of Fair Trading is currently looking in to personalised pricing - where retailers use information they've gathered about customers to decide how much to charge them. The information is collected either from previous purchases on the site or bought through a third party - retailers then potentially charging some people higher prices.

Particular worries have been raised about flights and hotel rates. There have been allegations that companies look at your computer brand or area (indications of wealth) to help them decide on hotel price, and that flight prices are changed depending what on other sites you have been looking at. This is very annoying, expecially for customers whose activity indicates that they are a) rich or b) badly need the service.

But as the FT points out, a system of fixed pricing isn't inevitable. It makes sense for retailers to try and squeeze all they can out of each customer, and fixed pricing only came in to fashion for practical reasons - high volumes making it impossible to keep track of individual buyers. But technology is changing this, allowing prices to splinter. Here's FT Alphaville:

We can find ourselves in a situation where we have inflation and deflation simultaneously across society. And not on a product level, but on a demographic level.

In fact it’s not too crazy to imagine an environment where prices get higher quickly for the 1 per cent, but lower for the 99 per cent. The 1 per cent are, after all, already prepared to pay over the pure cost price in many areas. Of course, the situation could be inverted as well.

The results of the change could be huge, but perhaps the Office of Fair Trading should stay out of it. Kenyan bus drivers use personalised pricing because it maximises profits and because they can. It makes a certain amount of sense for other businesses to start doing the same.
 
For you: best price. Photograph: Getty Images

Martha Gill writes the weekly Irrational Animals column. You can follow her on Twitter here: @Martha_Gill.

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Pity the Premier League – so much money can get you into all sorts of bother

You’ve got to feel sorry for our top teams. It's hard work, maintaining their brand.

I had lunch with an old girlfriend last week. Not old, exactly, just a young woman of 58, and not a girlfriend as such – though I have loads of female friends; just someone I knew as a girl on our estate in Cumbria when she was growing up and I was friendly with her family.

She was one of many kind, caring people from my past who wrote to me after my wife died in February, inviting me to lunch, cheer up the poor old soul. Which I’ve not been. So frightfully busy.

I never got round to lunch till last week.

She succeeded in her own career, became pretty well known, but not as well off financially as her husband, who is some sort of City whizz.

I visited her large house in the best part of Mayfair, and, over lunch, heard about their big estate in the West Country and their pile in Majorca, finding it hard to take my mind back to the weedy, runny-nosed little girl I knew when she was ten.

Their three homes employ 25 staff in total. Which means there are often some sort of staff problems.

How awful, I do feel sorry for you, must be terrible. It’s not easy having money, I said, managing somehow to keep back the fake tears.

Afterwards, I thought about our richest football teams – Man City, Man United and Chelsea. It’s not easy being rich like them, either.

In football, there are three reasons you have to spend the money. First of all, because you can. You have untold wealth, so you gobble up possessions regardless of the cost, and regardless of the fact that, as at Man United, you already have six other superstars playing in roughly the same position. You pay over the odds, as with Pogba, who is the most expensive player in the world, even though any halfwit knows that Messi and Ronaldo are infinitely more valuable. It leads to endless stresses and strains and poor old Wayne sitting on the bench.

Obviously, you are hoping to make the team better, and at the same time have the luxury of a whole top-class team sitting waiting on the bench, who would be desired by every other club in Europe. But the second reason you spend so wildly is the desire to stop your rivals buying the same players. It’s a spoiler tactic.

Third, there’s a very modern and stressful element to being rich in football, and that’s the need to feed the brand. Real Madrid began it ten years or so ago with their annual purchase of a galáctico. You have to refresh the team with a star name regularly, whatever the cost, if you want to keep the fans happy and sell even more shirts round the world each year.

You also need to attract PROUD SUPPLIERS OF LAV PAPER TO MAN CITY or OFFICIAL PROVIDER OF BABY BOTTLES TO MAN UNITED or PARTNERS WITH CHELSEA IN SUGARY DRINK. These suppliers pay a fortune to have their product associated with a famous Premier League club – and the club knows that, to keep up the interest, they must have yet another exciting £100m star lined up for each new season.

So, you can see what strains and stresses having mega money gets them into, trying to balance all these needs and desires. The manager will get the blame in the end when things start to go badly on the pitch, despite having had to accommodate some players he probably never craved. If you’re rich in football, or in most other walks in life, you have to show it, have all the required possessions, otherwise what’s the point of being rich?

One reason why Leicester did so well last season was that they had no money. This forced them to bond and work hard, make do with cheapo players, none of them rubbish, but none the sort of galáctico a super-Prem club would bother with.

Leicester won’t repeat that trick this year. It was a one-off. On the whole, the £100m player is better than the £10m player. The rich clubs will always come good. But having an enormous staff, at any level, is all such a worry for the rich. You have to feel sorry . . .

Hunter Davies’s “The Beatles Book” is published by Ebury

Hunter Davies is a journalist, broadcaster and profilic author perhaps best known for writing about the Beatles. He is an ardent Tottenham fan and writes a regular column on football for the New Statesman.

This article first appeared in the 29 September 2016 issue of the New Statesman, May’s new Tories