Amazon has done an amazing job of priming people to not comparison shop, just hit that buy button assuming that you're getting the best price. It's amazing.
It really works on a lot of people I know. Always buying tons and tons of stuff because "Prime." It's like "buy," "buy," "buy" all the time. I just find it amazingly fascinating.
Couple years ago. I was looking to buy a couple staples on Amazon once to spend enough for free shipping. I love Kraft Mac and cheese and it's a commodity item. Amazon was selling them for 3x the cost of the grocery store. Decided to check Walmart.com out of curiosity. They were normal grocery store price at Walmart.com, if you needed to order it online. I wonder if people actually think Kraft Mac and cheese actually costs that much.
I also noticed that the price of many toys skyrockets during December.
As an aside I've ordered Kraft Mac and cheese from jet.com at normal price since. Their prices and inventory change a lot though so you can't always get the same stuff and the same price.
COHEN: So this is interesting. This is a Babies R Us 800 baby wipes.
GOLDSTEIN: The wipes are in one of those displays out in the middle of the aisle. They're selling for $16.99. As the father of two young kids, I feel like I have some insight here.
Baby stuff - I know how much baby stuff costs.
COHEN: OK. Is this a good price?
GOLDSTEIN: Not great. It's not great.
COHEN: Seventeen bucks for 800 wipes? It's a value box.
GOLDSTEIN: I mean, buy it if you want. I don't think there's a lot of margin in it for you.
COHEN: I think you're wrong.
GOLDSTEIN: Sam has brought along one of his employees, a guy named Jay Freiday, to help him with the shopping. Freiday pulls out his phone and looks up how much this $17 box of wipes is selling for on Amazon.
JAY FREIDAY: This is currently selling for $46.
GOLDSTEIN: Wait a minute. People are paying - what did you say?
