Online Australian retailer, Kogan, has launched a service that changes a product’s price depending on where it is in the production cycle.
According to a statement released by the company, the LivePrice system tracks certain products and their place in the cycle allowing customers to get savings if they buy early.
The product starts life in the production phase, moves to being shipped before finishing in the “in stock” phase where the unit will be charged at the full recommended retail price.
“Every product you purchase has a hidden cost of finance included in its price,” Kogan boss, Ruslan Kogan, said a statement. “Credit can be given by a supplier, bank, or silent investor, but they all have one thing in common – they want a huge return on the money invested into the production cycle.
“We're not scared to admit that manufacturing new products means that money needs to be spent up front….with LivePrice, we've worked out a way for shoppers to save up to another 50 per cent.”
The changing price is based on an algorithm and does not physically track the location of a product. As soon as a product is placed on the LivePrice page, its price begins to steadily rise encouraging shoppers to buy sooner.