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Demand-based Pricing Strategy For A Bar?  
User currently offlinePe@rson From United Kingdom, joined Jan 2001, 19204 posts, RR: 52
Posted (10 years 3 months 3 days 15 hours ago) and read 2747 times:

Imagine a fun, informal and relaxing whilst concurrently sophisticated and mature bar in London, serving a high-quality type of drink. When demand for the particular drink you will be serving is low, like particular days of the week and during particular times, reduce your prices by a certain amount (from, say, 2.50 GBP to 1.50 GBP) to induce demand and custom, whilst increasing your prices by a certain amount (from, say, 2.50 GBP to 3.50 GBP) on days and during times when demand is high. You could further increase your prices by a certain amount (say 2.50 GBP to 4.00 GBP) at the ultimately high times, like from 8 or 9pm on a Saturday night. What are your opinions on all this? It is all fictional. Yes, some bars reduce their prices, but very few increase their prices to reflect the demand. I wonder whether the increasing of prices would deter people. I suppose it’d deter some, as lower prices mean an increase in demand (the law of demand; assuming everything else remains the same), but if you have a large number of loyal customers, it’d be yield at work. Also, it’d probably be OK if you had an excellent reputation for producing the high-quality drink.


"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
12 replies: All unread, jump to last
 
User currently offlineWorldoftui From Sweden, joined Aug 2007, 0 posts, RR: 0
Reply 1, posted (10 years 3 months 3 days 15 hours ago) and read 2740 times:

Don't pubs like Yates do that anyway? I am sure they do Mon-Thu specials.

Alot of chain pubs do this with their food prices as well.

Mark


User currently offlineRJ100 From Switzerland, joined Nov 2000, 4118 posts, RR: 29
Reply 2, posted (10 years 3 months 3 days 14 hours ago) and read 2736 times:

Hi

There is a bar chain in Switzerland doing this. They are called "WallStreet"...
It's quite fun. Every drink has it's price that changes so there is always a drink that is cheap as hell.
Never managed to get out of this bar not being drunk...

Regards,
Tom



none
User currently offlineAirsicknessbag From Germany, joined Aug 2000, 4723 posts, RR: 34
Reply 3, posted (10 years 3 months 3 days 12 hours ago) and read 2727 times:


If you ever happen to pass through Mannheim, go visit the Broker´s Inn. They do exactly that, floating prices according to demand.

Great fun!

Daniel Smile


User currently offlineAir2gxs From , joined Dec 1969, posts, RR:
Reply 4, posted (10 years 3 months 3 days 12 hours ago) and read 2720 times:

Since this is an economic question don't forget one more principle that goes along with demand pricing. Diminishing returns. Raise your price too much and lose your demand. Bad thing. Too many politicians forget that when they try to establish so called "sin taxes".

User currently offlineGalaxy5 From United States of America, joined Mar 2000, 2034 posts, RR: 24
Reply 5, posted (10 years 3 months 3 days 12 hours ago) and read 2716 times:

Sounds like the OPEC of bars.


"damn, I didnt know prince could Ball like that" - Charlie Murphy
User currently offlineLHmark From United States of America, joined Jan 2000, 7255 posts, RR: 47
Reply 6, posted (10 years 3 months 3 days 12 hours ago) and read 2716 times:

If they ever try this in Dayton, your best bet is to order Rainbow Warriors. The only other person buying them will be Aa61hvy, and he's passed out after one and a half, so prices would always be rock bottom.




"Sympathy is something that shouldn't be bestowed on the Yankees. Apparently it angers them." - Bob Feller
User currently offlineAIR757200 From United States of America, joined Jul 2000, 1579 posts, RR: 7
Reply 7, posted (10 years 3 months 3 days 6 hours ago) and read 2697 times:


Wasn't Coke testing vending machines with demand-based pricing? On hot days, a 20 oz. of Coke was $1.50 or so, and then on cooler days, it was $1.00? I think we had it as a case study in one of my business classes.


User currently offlineLeviticus From New Zealand, joined Oct 2007, 0 posts, RR: 0
Reply 8, posted (10 years 3 months 3 days 6 hours ago) and read 2694 times:

RJ100, it sounds really great ! Do you know if they have a website ?

User currently offlineJGPH1A From , joined Dec 1969, posts, RR:
Reply 9, posted (10 years 3 months 3 days 6 hours ago) and read 2693 times:

Based on this pricing strategy, prepare to get VERY drunk on Advocaat 'n BabyCham (With A Cherry).

User currently offlinePe@rson From United Kingdom, joined Jan 2001, 19204 posts, RR: 52
Reply 10, posted (10 years 3 months 3 days 4 hours ago) and read 2682 times:

It's an interesting topic - how to generate more interest when there's less demand (i.e. lower prices or special offers (BOGOF, BOGOHP, etc) or both) and how to squeeze more money (to a realistic level) per drink and also sell many when demand is high. It'd be a fine balance. Some airlines do similar things, so why can't a bar?


"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
User currently offlineJamotcx From United Kingdom, joined May 2004, 1037 posts, RR: 25
Reply 11, posted (10 years 3 months 3 days 3 hours ago) and read 2672 times:

Theres a couple of Bars here in Manchester that do that. In fact its not the bars its the clubs right up in the city centre. Every 30 mins they update prices and they go up or down depending upon demand. But usually Vodka prices skyrocket along with other very popular drinks. But the ones that aren't so popular (the ones that taste foul and disgusting) can come down to as low as £1.


Jamo


User currently offlineAa61hvy From United States of America, joined Nov 1999, 13977 posts, RR: 57
Reply 12, posted (10 years 3 months 2 days 6 hours ago) and read 2658 times:

We'll see who's the big drinker in NYC Marky  Big grin


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