The online X-Box 360 challenge @ Tesco
Friday, November 9th, 2007
You may know Fi and I ordered X-box 360’s, in good faith, from Tesco online for the princely sum of £35. It would appear that there may be a loophole in how tesco direct works.
Every so often they spider their competitors websites extracting the prices of the stuff they sell. If they find a competitors selling it cheaper they take 1p off the price and then lower the price a further 5% to make them competitive (from what I can find out online). It would appear that yesterday Virgin accidentally dropped some prices on the site – the x-box 360 one was live on the site for around an hour, it would appear that tesco were served with a number of incorrect prices during this period!
This led to Tesco dynamically pricing and advertising x-box 360’s for about £35.
So if any anyone ever wants a similar system developed – as they’re quite common these days – remember they’ll need to put a minimum price on each item – so if a competitor gets wise (accidentally messes up their pricing) they don’t lose out massively.
You may know Fi and I ordered X-box 360’s, in good faith, from Tesco online for the princely sum of £35. It would appear that there may be a loophole in how tesco direct works.
Every so often they spider their competitors websites extracting the prices of the stuff they sell. If they find a competitors selling it cheaper they take 1p off the price and then lower the price a further 5% to make them competitive (from what I can find out online). It would appear that yesterday Virgin accidentally dropped some prices on the site – the x-box 360 one was live on the site for around an hour, it would appear that tesco were served with a number of incorrect prices during this period!
This led to Tesco dynamically pricing and advertising x-box 360’s for about £35.
So if any anyone ever wants a similar system developed – as they’re quite common these days – remember they’ll need to put a minimum price on each item – so if a competitor gets wise (accidentally messes up their pricing) they don’t lose out massively.
