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Algorithmic Selling by tarazkp

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hive-180505 · @tarazkp ·
$19.32
Algorithmic Selling
<div class="text-justify">

A friend asked me the other day why the stores are selling their summer equipment at 50 to 60 percent off, even though the weather is still so warm. He finds it strange because there is a high demand for it, so they could make more money by keeping the prices up for a couple more weeks. However, this would lose them money, wouldn't it?


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![image.png](https://files.peakd.com/file/peakd-hive/tarazkp/244eXnToivvc2bCgEPVieqp1cxqm2b9kzpQf2eAwB2Z3sbavJdgCaod9k5iw6sSApHp2F.png)


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Because they all know *winter is coming,* the weather is going to change, and that demand is going to dry up incredibly fast. And they know that while it is hotter than normal right now, their systems have told them to sell, *regardless of the weather.* And this means that if one puts their merchandise on sale, they pretty much all have to put their stock on sale, otherwise they will be left with a saturated market, and a storeroom full of unmovable items. They can then sell even cheaper, or hold until next season.

This is one of the many problems with homogenous products and the amount of chain stores selling identical or slight variations of the same brands and products. There is so little differentiation in the marketplace that it all just comes down to price. So when one sells, all sell. If you know the drop is coming anyway, it is about holding out as long as possible, but selling as early as possible to maximise the sales at the top end, and the sales on the way down.

> There are some deals to be had.

*If you are already in the market for something.* Otherwise it is just buying stuff that is not necessary. Many people go crazy whenever there are sales on anything and end up spending a lot more money than they have, on things they don't really need. But sometimes if the timing works out like when the terrace we have built is ready at the end of the summer, then it is possible to pick up furnishings pretty cheap - though they will be used more next year.

And this is also a bit of an issue that most people have, where we want to be able to use what we buy straight away, which means we end up not buying what we will use next year on sale now, because it will just sit unused until then. For instance, I am looking for a new grill, but I will only get one if it is a really really good deal. However, while we don't need it now that summer is ending, I also know we will likely need one next year anyway, as the one we have inherited from my in-laws is on its last legs and struggles to heat. But there is still that "new toy" appeal and if I got it, I would want to use it straight away.

> I haven't found one suitably cheap enough yet.

*I will wait until mid-autumn.*
.
.
.
.
.
*Or mid-winter.* 

My friend, who is the head of finance at a pharmaceutical is no stranger to the markets, but at the same time, he looks far longer than a three-month season, and has a very different kind of product range he deals with. For instance, there is clear differentiation in the market for a lot of the pharmaceuticals, so they aren't competing on price, or on seasonal fashion, or on impulse buying. They don't have to reduce the price of their products at the consumer level at all.

> They work on very different algorithms.

As they aren't dealing direct with the consumer, they run their deals through governments and hospitals and pharmacy chains. It is a different kind of marketplace and one where I suspect a lot of wastage happens, and the consumer ends up paying far more than they should be paying - or the taxpayer. And the consumer is willing to pay, because the trend they are trying to buy for, is the increasing pain or whatever ailment they have, so they are willing to overpay. As far as pharmaceutical companies are concerned, they don't need to sell cheap, because the market is willing to pay the price directly, or indirectly.

> More pain = More profit.

And business is good.



Taraz
[ Gen1: Hive ]


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</div>
πŸ‘  , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , and 176 others
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vote details (240)
@bilalber · 
The sales season is not random… it's a game of timing and market strategies, even if the weather seems unfavorable!
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@bozz ·
$0.32
This is a big reason why I stopped doing any of the black Friday sales around the holiday times.  You basically just end up buying stuff you don't really need because you think you are getting a great deal on it.
πŸ‘  
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@tarazkp ·
$0.03
I stay away from those too. I often have a look for things I need, but I am wary of getting crap I don't these days.
πŸ‘  
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vote details (1)
@ducecrypto ·
$0.59
> There are some deals to be had.

If you are already in the market for something. Otherwise it is just buying stuff that is not necessary.

One of my mother's favorite sayings growing up: "It's only a good sale if you need it!" It's something I live by (unless it comes to Black Foils). Somehow I just help myself. At this point I'm sure I could be halfway to buying a home on the beach in some quaint Southeast Asian country.
πŸ‘  
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@tarazkp ·
$0.02
A friend of mine built a full home for 40K in Thailand - how much is your collection worth?
πŸ‘  
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vote details (1)
@ducecrypto · 
Double easily... maybe even 3x if you consider all the alts and non-card assets. It is quite a bit more for something in Costa Rica or Sardinia. I'm still having some trouble selling wifey on Southeast Asia though. Too far from aging parents. Maybe later on for us when we have no kids and can host retreats and festivals in our fields rich with $SPS and $HIVE dividends.
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@hivebuzz · 
Congratulations @tarazkp! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)

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<sub>_You can view your badges on [your board](https://hivebuzz.me/@tarazkp) and compare yourself to others in the [Ranking](https://hivebuzz.me/ranking)_</sub>
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@holoz0r ·
$0.53
I had a conversation on the phone with a friend about... an hour ago, very similar to the nature of this post. 

Some people make a lot of money in an ethical way, though hard work. Others "hurt" others along the way to make the money. While the example you gave around pharmaceuticals isn't one of direct harm (medication, on the balance, is good, and helps us live longer lives) - but the *bad* of it is that the cost trickles down in our taxes and other "costs of living" that aren't readily visible.
πŸ‘  
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@tarazkp · 
And those trickle down costs are more of a flood, and a lot of the incentives for pharma encourage them to keep us ill, rather than finding ways to improve our health.
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@holoz0r · 
Just as fast food keeps us hungry :)
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@princessluv ·
$0.49
It's funny the way stores race to offload gear before the season even ends. Everything feels disposable now, products, prices, even timing. It's like we're all just trying to outguess the algorithm instead of making thoughtful choices.
πŸ‘  
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vote details (1)
@tarazkp · 
Everything is disposable - including people. It is all about having a feeling for a moment, rather than investing into all the moments to come.
πŸ‘  
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vote details (1)
@princessluv · 
I'm really going to use this as my perspective now, thanks πŸ₯°
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@riverflows ·
$0.46
Can't wait til Spring sales so I can pick up a new puffer jacket.
πŸ‘  
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vote details (1)
@tarazkp · 
Something like this? 


![image.png](https://images.hive.blog/DQmUthKQ6eAoqDfVbesb2gau3vLi9tKez4go912z9d6u5iz/image.png)
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@ryivhnn ·
$0.54
My Etsy shop last night was good timing, everything bar one item I happened to buy was on sale (including one item that wasn't on sale when I had the tab open but suddenly was when I hit the add to cart button XD otherwise it would have been two items not on sale).

That didn't have anything to do with summer in the northern hemisphere though as I almost exclusively buy from Australian Etsy because that shipping already kills me and international shipping is worse.

> There is so little differentiation in the marketplace that it all just comes down to price

Okay good it's not just me, I usually think I'm just severely uncultured when it comes to fashion and think everything looks the same because I don't care.

<sub>I am actually severely uncultured when it comes to fashion</sub>

I remember telling someone one time that I appreciated the medical profession but not the medical industry or something along those lines.
πŸ‘  
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vote details (1)
@tarazkp · 
>because that shipping already kills me and international shipping is worse.

It is getting insane, isn't it? It is expected to get even worse with the tariffs I suspect. A lot of the scam of price is in the shipping costs. And then in Finland, anything from outside the EU has to go through customs and I will have to pay an *additional* 30% or so on it - including 30% on the shipping! 

>I usually think I'm just severely uncultured when it comes to fashion and think everything looks the same because I don't care.

Much like the cars these days. All pretty much the same.
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@ryivhnn · 
Oof! x_x

Do you find that shipping is more expensive than the item? That's my current rage DX
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@seattlea ·
$0.50
Wouldn't it be great if we could look ahead and see when we would be able to purchase a stock or crypto for cheaper? Like to be able to predict when the algorithmic selling would occur in the markets in response to some event in the future like you can do with the grill...
πŸ‘  
properties (23)
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vote details (1)
@tarazkp · 
>Like to be able to predict when the algorithmic selling would occur in the markets in response to some event in the future like you can do with the grill...

Like expected job figures? :D
properties (22)
authortarazkp
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@tht ·
$0.49
Discounts are a huge draw for people. When there's a sale, they buy an item even if they don't need it. If I don't need something but it's going to be useful in the future and it's on sale, I'm eager to grab it. It's up to us to make life easier by taking advantage of opportunities.
πŸ‘  
properties (23)
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vote details (1)
@tarazkp · 
Supposedly, there is a thing where men are more likely to look at red tickets, because they think they are on sale :D
properties (22)
authortarazkp
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@urrirru ·
$0.50
I love discounts. But I will never buy something I don't need, even at a super low price.
πŸ‘  
properties (23)
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vote details (1)
@tarazkp · 
It is a good habit to have.
properties (22)
authortarazkp
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@videoaddiction ·
$0.49
I think a lot of shoppers get swept away by the thrill of discounts and end up buying things they don't really need right then, which can result in some regret later on.
πŸ‘  
properties (23)
authorvideoaddiction
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vote details (1)
@tarazkp · 
I am training myself to enjoy pretending to shop more than actually buying :D
properties (22)
authortarazkp
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