We have a charity where we ask for donations which we convert into €50 grocery vouchers for Ukrainian families that fled to Austria. Our state fails them as well.
We are zero overhead, every cent goes towards the vouchers. We pay the rest (envelops, stamps, printer cartridges, etc.)
We are 100% transparent, all contracts/orders/bills/payments here:
First of all, the minister initially planned to create a price comparison platform "himself". This would have meant that some company he's buddy buddy with would have gotten a million Euro contract and delivered an abmysal failure of a system.
He's now given up on that.
The second upside: as soon as media coverage of our efforts picked up, the price hikes stopped for the most part. I'm obviously not entirely attributing this to our work. But I like to think we played a part in it.
Remember the chain of command. The minister decides what actually gets done.
And that minister is a member of the conservative party. You can already guess what gets done, right?
His plan: 1. The grocery chains must publish data. But only for a hand-picked list of basic products. Not the entire sortiment, like we do now. 2. Platform owners can be sanctioned/sued if they display the data the wrong way.
And they also officially said it's very likely the grocery chains use automated systems to follow each other in prices.
No word on the other data. We'll find out what they think end of October when the full report is scheduled to be released.
Now, here's how the chain of command works in this sector.
The competition authority is apolitical but under the reign of the politically appointed minister of economics. They can only report and suggest to him.
The suggestion by the competition authority to the minister was great:
1. Using the data should be made legal by the legislature for certain parties, including price comparison platforms and academic institutions. 2. Grocery chains of a certain size must publish all their data in real-time according to a predefined scheme with all necessary meta data to make things comparable and allow matching of products across stores.
The basic gist of that feedback: - Legal: it must be legal for us to crawl and publish the price data the stores put out on the web in their online stores - Technical: ideally, stores would be forced to put that data out in a normalized form, so matching and comparisons become easier. We already did that ourselves though, with some data science and heuristics, so no biggie if that doesn't happen.
Besides that feedback, I also send them a shitton of data and patterns I found.
I'm but a lowly computer nerd and lay person, and not someone with an economics degree. I simply handed the data over in the hopes their experts would figure this shit out.
Well. Today they presented their first preliminary report.
In it, they basically copied my long ass email with answers to their questions from earlier more or less verbatim. They agreed with my conclusions regarding what needs to be done on the legal and technical site.
But there's a more "nefarious" kind of price decrease.
As I said, Austria is a country of insane amounts of cyclic discounts. Many products will be sold for their "regular" price for one week and a discount price the other.
The real price for the consumer is the average of the regular and discounted price.
Given this knowledge, do you notice something with the prices for this product the grocery chain claims to have decreased the regular price on?
While their claim that they decreased the regular price is correct, they also increased the discounted price that comes into play every other X weeks/days.
So they are again technically correct: the regular price was decreased.
But on average, a consumer pays more if they buy the product every week, as the discounted price has been increased. The average is higher than before.
All that media coverage of my platform and the platforms of other people, with whom I've started to converse and who've became friends of sorts, triggered the competition authority of Austria.
You know, the guys and gals who's job it is to sniff out anti-competitive behaviour, cartels, price gauging and coordination and so on.
They contacted all of us to ask what we'd need to continue doing our work. They actually saw value in that.
The grocery chains got a little iffy about all that somewhat negative media coverage, some of which was spurred by my continued analyses.
They started to put out these things in the store. It basically says "We've already lowered the prices of 450 products for you this year". With a sortiment of 22000.
They were also dumb enough to put out a machine readable PDF with all the products they lowered the price for.
With a little data science magic, I was able to match those with my database...
Then I looked at an aspect pretty unique to Austria: discounts.
You see, in a normal country, with a competitive grocery market, you usually have about 10%-20% of products that get discounted on average.
In Austria, that rate is 40%. It's a fantastic way to obfuscate the actual price of a product. As a customer, you'll never know what you'll pay on that day until you see the current discounts directly in the store.
The chains are very generous and will send you discount leaflets via mail.
If I were trying to describe it in more flowerly terms: It's asymmetric information war fare.
The stores tell you they are good and benevolent and only have your interest at heart, so here are discounts. Discounts for everyone. They even gamified the whole thing with stickers. I shit you not. People collect stickers they put on the products in the convery belt at the register. There's also apps, which will give them all info on you
In reality it makes it impossible to know how much things cost