Pe@rson
Topic Author
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Joined: Sat Jan 13, 2001 6:29 pm

Demand-based Pricing Strategy For A Bar?

Sat May 22, 2004 6:03 pm

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."
 
worldoftui
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Joined: Fri Aug 24, 2007 5:18 pm

RE: Demand-based Pricing Strategy For A Bar?

Sat May 22, 2004 7:01 pm

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
 
RJ100
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Joined: Wed Nov 22, 2000 1:37 am

RE: Demand-based Pricing Strategy For A Bar?

Sat May 22, 2004 7:44 pm

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
 
airsicknessbag
Posts: 4626
Joined: Thu Aug 17, 2000 2:45 am

RE: Demand-based Pricing Strategy For A Bar?

Sat May 22, 2004 9:22 pm


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
 
air2gxs
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Joined: Mon Jun 18, 2001 1:29 pm

RE: Demand-based Pricing Strategy For A Bar?

Sat May 22, 2004 9:29 pm

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".
 
galaxy5
Posts: 1952
Joined: Sat Mar 18, 2000 10:09 pm

RE: Demand-based Pricing Strategy For A Bar?

Sat May 22, 2004 9:30 pm

Sounds like the OPEC of bars.
"damn, I didnt know prince could Ball like that" - Charlie Murphy
 
LHMark
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Joined: Fri Jan 21, 2000 2:18 am

RE: Demand-based Pricing Strategy For A Bar?

Sat May 22, 2004 9:32 pm

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
 
AIR757200
Posts: 1466
Joined: Mon Jul 17, 2000 8:30 am

RE: Demand-based Pricing Strategy For A Bar?

Sun May 23, 2004 3:02 am


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.
 
leviticus
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RE: Demand-based Pricing Strategy For A Bar?

Sun May 23, 2004 3:20 am

RJ100, it sounds really great ! Do you know if they have a website ?
 
JGPH1A
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RE: Demand-based Pricing Strategy For A Bar?

Sun May 23, 2004 3:36 am

Based on this pricing strategy, prepare to get VERY drunk on Advocaat 'n BabyCham (With A Cherry).
Young and beautiful and thin and gorgeous AND BANNED ! Cya at airspaceonline.com, losers
 
Pe@rson
Topic Author
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Joined: Sat Jan 13, 2001 6:29 pm

RE: Demand-based Pricing Strategy For A Bar?

Sun May 23, 2004 5:39 am

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."
 
jamotcx
Posts: 839
Joined: Sun May 16, 2004 10:20 am

RE: Demand-based Pricing Strategy For A Bar?

Sun May 23, 2004 6:01 am

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
 
aa61hvy
Posts: 13021
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RE: Demand-based Pricing Strategy For A Bar?

Mon May 24, 2004 3:21 am

We'll see who's the big drinker in NYC Marky  Big grin
Go big or go home

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