Which Companies Are Using "Drip Pricing" Tactics ?

[Deactivated] on 25/01/2023 - 11:06
Last edited 26/01/2023 - 14:33

Just wanted to share an interesting tactic and raise awareness on "drip pricing" used by many companies. I find this tactic very misleading and in a way falls in the grey area of false advertising.

It seems to be used widely by the Airlines industry but now being adopted by many other businesses.

https://passingtime.substack.com/p/perfidious-pricing

EDIT:
What is Drip Pricing?

‘Drip pricing’ is when a price is advertised at the beginning of an online purchase, but then extra fees and charges (such as booking and service fees) are gradually added during the purchase process. This can result in consumers paying more than they initially intended to.

Businesses must be upfront and clearly disclose to consumers at the start of a purchasing process the types of fees that will apply and when.

Consumers should be wary of misleading ‘drip pricing’ practices when shopping online, particularly when purchasing airline, ticketing, accommodation and vehicle rental services.

To try and avoid paying more through drip pricing consumers should:

  • not just focus on the advertised price – add up all the charges together to figure out the total final price you will have to pay and whether this is good value for money
  • be prepared to back out of the transaction and shop around to find a better final price from a competitor
  • look out for pre-selections and make sure to deselect anything that’s not wanted.

https://www.accc.gov.au/consumers/pricing/price-displays#-a-…

General Discussion

Comments

    • smartazz104 on 26/01/2023 - 17:26
      +2

      and 7.5% for weekdays.

      Why not just build it into their prices at this point…

    • bettina44 on 26/01/2023 - 19:20
      +1

      I want to who’s charging surcharges for a normal weekday…

  • HerpinDerp on 25/01/2023 - 12:28
    +2

    The Bavarian is notorious for this.

    I don't know how they haven't been done yet.
    $5 wings…. that aren't $5????

    • djsweet on 25/01/2023 - 12:37
      +3

      Agreed. $10 schnit tuesdays. Must buy a full priced drink. Bargain basement plain chicken schnit with a slice of lemon. No sauce. Not even on the menu. To "upgrade" to a menu schnit is an extra $10. So suddenly, its $25. Maybe a $2-$3 saving from regular prices.

  • deveshwar0 on 25/01/2023 - 12:48
    +14

    Hate Village Cinemas for their online booking fee. I mean, Hello….I'm not using your employee resource by booking online and you want to charge me extra.
    Next, Colesworth will start charging a fee for using self checkout.

    • Ghost47 on 25/01/2023 - 13:30
      +3

      All cinemas charge an online booking fee, not just Village. It does suck though.

    • clover on 25/01/2023 - 14:46
      +2

      Agree. it is ridiculous to be charged for something we are doing on behalf of their staffs

      • ESEMCE on 25/01/2023 - 15:22
        +3

        Buy through Telstra Account to bypass booking fee

        • deveshwar0 on 25/01/2023 - 15:57
          +1

          I buy through RACV (Neat Ideas) who charge a 1.5% payment processing fee but when you go to book the movie using these vouchers, Village Cinemas charge a booking fee of $1.50 each ticket.

        • hashtagbargain on 26/01/2023 - 09:46

          How exactly does this work?

          • deveshwar0 on 26/01/2023 - 16:40

            @hashtagbargain: You buy movie vouchers through RACV and redeem them on the cinema's website to book tickets.

    • whyisave on 26/01/2023 - 09:33
      +1

      Colesworth will start charging a fee for using self checkout.

      That really ruffles my jimmies,
      that I am doing the work of the staff that Colesworth had to pay them to do,
      so, if I am saving their business that salary money,
      shouldn't the items in the supermarket be cheaper now ?

  • MS Paint on 25/01/2023 - 13:55
    +32

    Not sure if this is technically drip pricing (probably more bait and switch) but….

    When you perform a search on eBay for a particular item and sort by cheapest to highest. The top 500+ results (for example) is for the item you're after and really cheap. You click on the item to discover the price is for some random unrelated piece of shit and you have to select the item you're after from a drop down box. Lo and behold - your item is at the same price as everyone else.

    • Mechz on 25/01/2023 - 15:15
      +3

      Yeah, like searching for 18TB HDD and you get all the miss hits from 2TB and up.

      • CowFrogHorse on 26/01/2023 - 11:04
        +3

        What did you expect from Ebay.

        Typical American bullshit - they have no shame, and will whore and lie as long as they make a dollar.

        THey make whores on cocaine or heroine look classy.

    • Cheaplikethebird on 25/01/2023 - 16:49
      +7

      Yeah one of the most annoying things with eBay currently.

    • cookie2 on 25/01/2023 - 17:07
      +7

      Stopped browsing on eBay due to this. Can't be bothered.

    • pegaxs on 25/01/2023 - 20:01
      +1

      Yeah, they always include something like a plastic clip for $1.99 on items that are well over $100. I guess bait and switch? Life you in with a cheap price, only to find out it’s not the item you wanted.

    • whyisave on 26/01/2023 - 09:35
      +5

      I've hated this eBay "feature" since ever.

      I sort them from highest to cheapest (or vice versa),
      and then scan through to see which has the 'non price-range' price,
      ie. a price which is for a single item and not for an item with a price range.

    • BargainKen on 26/01/2023 - 10:28
      +3

      Yep gotta reverse your strategy an go High to Low, then flick to the price range your item is in and just flick through those listings, avoid the upper and lower extreme values as they are usually unrelated junk.

  • Mechz on 25/01/2023 - 15:52

    I guess the advantage of paying cash (if you have change etc) might be that you just put the correct $ amount on the table and walk out.

  • plmko on 25/01/2023 - 16:07
    -1

    Nah Aussies love drip pricing. The fact that we live in a subscription world says it all.

    • MS Paint on 25/01/2023 - 16:51
      +6

      .

      Please pay your ozbargain subscription so we can read your reply. Cheers.

    • CowFrogHorse on 26/01/2023 - 11:02

      Really so a majority of Australians voted for this ?

      Next your going to say everybody had a choice and voted for it and that explains why something exists ?

      I suppose the war in Ukraine exists because Ausrtalians wanted it..

  • LoserScott on 26/01/2023 - 01:46

    Once February hits everything will feel like a surcharge.

  • THICKnSLOW on 26/01/2023 - 06:14
    +8

    Is drip tactic something like creating a post to ask a question about an issue but not explaining an issue in the post, instead linking a website so the reader has to go to that website to read further to understand it, in effect creating more internet traffic for that website and its advertisers, therefore generating income for that website?

    Why not explain what it is in the post first, then link reference after.

    • [Deactivated] on 26/01/2023 - 14:08

      I hadn't really learnt about it before that post, so I thought of adding it. Upon further research I found more information on it. I don't really mind if someone makes money for creating awareness and good for us all to know.

      https://www.accc.gov.au/consumers/pricing/price-displays

  • Silly-sausage88 on 26/01/2023 - 07:55
    -1

    Happened to me at Gongcha or Chatime. They didnt have PH rates advertised. I went ballistic and complained and got a $10 preloaded card.

  • JIMB0 on 26/01/2023 - 08:50
    -3

    Ozbargain has drip pricing. They get you to sign up for a premium membership thinking it has all the good deals and hacks. Then once you get it you find out all the good deals require a gold membership.

  • TEER3X on 26/01/2023 - 09:14
    +1

    Just an idea, maybe add the definition of drip pricing in the original post?

    • [Deactivated] on 26/01/2023 - 14:09
      +1

      Added now. Thanks.

  • Dslrfirst on 26/01/2023 - 09:56

    Travel industry.

  • BargainKen on 26/01/2023 - 10:32
    +2

    Happens all the time in America, they call it "Nickel-and-diming" and they too hate it, but they're used to it since everyone does it.

    Try booking a hotel in LasVegas for example, list price seems cheap but as soon as they tack on Resort fee and state taxes, not so cheap. Here its been slowly festering with stingy practises such as 20-50cents for sauce with hot chips to other BS like that. I recall one time at a Chinese Restaurant in Melbourne they charged me $2 for a bottle of tap water… 🤣

    • CowFrogHorse on 26/01/2023 - 11:01
      -2

      So why go to sewerage like LV in the first place when you have the greatest country on earth in Australia ?

      • BargainKen on 26/01/2023 - 11:13

        Something different. Also lots of shows in LV if you like that sort of thing.

  • patrick321 on 26/01/2023 - 10:45
    +3

    This has been happening in Australia for a long time in some places.

    About 10 years ago I was in ribs n rumps next to olympic park station with a group of 6 people visitors who I was taking out. When the bill came there was an extra amount tagged onto the end, when I asked what this was I was told it was a weekend surcharge (it was not a small amount).
    There was no prior warnings on the menu or anywhere in the place stating that the prices on the menu were not all you would pay. I payed the bill that the menu quoted me and what I agreed to pay when I ordered and we all left.
    That was the last time I ate in any ribs n rumps and still avoid the name when choosing a restaurant.

    Same thing happened about 5 years ago at Biviano's in Windsor NSW no notice that there were extra fees to pay, just an added extra on the bill. My first visit was my last.

    It stuns me that in Australia where the price of eating out is so much higher than many other countries that they ask for extra fees, and the service is so bog standard compared to the US where the customer is king, something to be said for the work for tips system they have.

  • CowFrogHorse on 26/01/2023 - 11:00
    +4

    America is the land of bullshit, and this is an example of typical American corporate culture.

    As always things american are always bullshit and never straight forward and honest.

    American pricing is well know for this type of thing, where extras like sales tax are not included in the displayed price etc.

    Hardly a surprise from the leaders in fakeness and bullshit.

    Its a shame Australians copy their crap and ruin the greatest country on earth with the land of bullshit where far too many things are fake and lies.

    • smartazz104 on 26/01/2023 - 17:31

      Capitalism baby.

      • CowFrogHorse on 27/01/2023 - 18:02

        There are many flavours of ice cream, who says American ice cream is best ?

  • OZBargainer in SA on 26/01/2023 - 12:25

    I'm not saying that displaying a price before taxes is acceptable, but I imagine that advertising a price with tax in the USA would be very difficult because taxes vary greatly from region to region. And I think USA sales taxes also vary by goods or service category as well.
    We've got a flat 10% GST which makes it easy for companies to advertise an Aus-wide price.
    I agree that we should stop copying USA practices, like tipping.
    I don't know how an Australian company can advertise prices on a menu and then add an unavoidable surcharge in fine print.
    Report them to your state's consumer affairs!

    • BobLim on 26/01/2023 - 23:31
      +2

      advertising a price with tax in the USA would be very difficult because taxes vary greatly from region to region

      Yes, I too often find that I can enter a restaurant, sit down for a meal, and by the time I've walked outside I've been transported to another state with a different taxation scheme…

    • CowFrogHorse on 27/01/2023 - 18:15

      Whats so difficult about a shop like Kmart putting the real price with tax on their store display labels ?

      If the paper or display can show one number surely it can show another.

      The truth is its just an example of what Americans do best - bullshit.

      Everything about America is bullshit.

      • Google and advertising - more bullshit where everything is a big lie.
      • Corporate culture where companies say they are your friend and care, but ask for a day off to visit your sick mum, and you find out the real truth.

      This just another example of America whoring after another cent anywhich way they can.

      • clover on 30/01/2023 - 01:16

        Japan does this. They have prices displayed incl and excl tax. Not that hard

  • JIMB0 on 26/01/2023 - 14:38

    Massage parlors are notorious for trying to charge extra.

  • azurell on 26/01/2023 - 16:54
    +1

    Ubereats

  • payless69 on 26/01/2023 - 18:43
    -3

    details for ABN 75 818 456 675 This organisation is by far the worst offender! It is run by a mad chuck who is angry for not finding a husband.
    They presume issues and then charge money only to later add on more and more without having a real explanation or a valid reason for the products they charge do not exist and there is also no justification for it. Work creation Mao style red tape for the sake of it. Say you register to become an illegal sham contractor like driving for an Iranian immigrant to the US who is getting millions a year just to put on an endless number of sham contractors. Developing countries like Indonesia do actually enforce sham contracting rules but the mad chuck thinks she is in power of a unicameral chamber just so that her br*wn skinned cheap drivers can enjoy her illegal drip pricing. Skip a trafic light and kill some innocent human and it is only like $400 but no belt over shoulder is over 1k. Normal humans fail to find the logic. All the HN affiliates will you please neg this, others can look up the number….

  • gviddy on 26/01/2023 - 22:56
    +1

    Catch of the Day did this to me. They were advertising some dunlopillo pillows which were a LOT cheaper than anywhere else. Then I went to checkout and the delivery price was something crazy like $90. For two pillows to Brisbane city. This then made the entire deal about $20 more expensive than just driving down the road to purchase at Spotlight. So didn't end up purchasing from COTD.

    Also it made me never want to shop at COTD again. Not that I ever did. As I didn't realise they were dodgy like this.

  • RefusdClassification on 27/01/2023 - 04:54
    +1

    Kinguin / GTA for game keys are calpable too. They add 2 fees on top of the listing price.

    Other offenders are Banks and Paypal for Currency conversion (generally an extra 3%) and cross borders transactions (another 3%). Pure predation. They are already making money off the merchant on every transaction.

    I wish this practice was illegal in all industries.

  • nedrum on 27/01/2023 - 09:39

    As well as laddering, which I think budget airlines like Jetstar do extensively. Explainer in the Youtube below (better than I could explain it!)
    https://www.youtube.com/watch?v=XeDPwpIFs-I

  • idonotknowwhy on 27/01/2023 - 11:30
    +2

    I'm hating this kind of shit.
    - Surcharges are default and aren't even mentioned verbally now (usually has the sign on the terminal / wall though).
    - Uber Eats add a 'service' fee, so the 'free delivery' you get with the monthly subscription just makes it the same as it was 2 years ago.
    - Eating out there are sunday surcharges, public holiday surcharges, and even surcharges for days attached to public holidays (eg. today) and long weekends.
    - Book a movie online which saves staff time at the cinema? Pay a booking fee!

  • jatbinks on 27/01/2023 - 15:47

    Tesla that tries to sell it's junk self driving software to everyone when it's not even capable of self driving.

  • bigbadboogieman on 28/01/2023 - 09:00

    I have seen Youi and other insurers do that. The initial quote comes out lower but when you enter details, etc, the prices jump.

    • Guybrush57 on 28/01/2023 - 11:26

      I despise Youi for making me take 2 hours to ask 1000 questions for what ended up being an exorbitant quote.

  • bigbadboogieman on 28/01/2023 - 09:03

    I wish ACCC takes notice of this thread and does something about this scourge.

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