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Switching Locations for a Better Price

Many companies who operate on the internet operate an economic technique called price discrimination. This is a way where companies can sell the same goods and services for different prices in order to maximise profits rather than sell at a single price to everyone. The concept follows the idea that different people will pay different amounts for the same product.

The internet initially looked like it would change this, price discrimination relies on separating markets in order to charge different amounts. When anyone can buy from anywhere in the world the barriers seemed to fall especially for services and low weight items which can be easily distributed. Why buy something for £100 from a UK based site when it’s available from a French site for half the price, the web threatened to smash down these barriers.

Alas this didn’t last long, and in some cases the internet has made things worse with global companies setting up localised versions of their sites (and prices) using a technology called geo-location. This is quite a simple technology which looks up your physical location based on the internet address (IP) that is assigned to you by your ISP (Internet service provider). Using this technology people are redirected or even blocked based on their location, so connect from France and you get a French version of a site, from USA you’ll get a US version and so on – the idea that different prices and services can be supplied based on what the local market will support.

This behaviour is now pretty pervasive with almost all internet retailers operating to some extent. Login and check an air fare price for example you’ll probably get offered a different fare depending on where you are physically for the same flight. This of course makes it essential that you can get some sort of control back unless you want to be paying top prices for everything you buy online. To do this is fortunately very straight forward – simply use proxies to change your IP address. Here’s how you can use an English proxy – just here, to switch your location to the UK.

So whilst connected to this service you can choose out of about twenty countries to route your connection through. Use a British server and you’ll have a British IP address, an American service will give you a US IP address and so on. Using this you can check out the prices of all sorts of site based on different physical locations.

For example I always use this to watch the BBC from Ireland but I recently wanted to book a city break for my family. Funnily enough I got completely different prices for flights based on an Irish address to a British address despite the flights being identical in every sense. Unsurprisingly I have found that generally my standard UK address gives me a much worse deal than a French or American on for some reason.