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seed
01-07-2012, 02:38 PM
I was pondering asking our customers to “Sponsor “us this year! Our license renewal is up in March it is about four grand in total. Private clubs have a membership fee and shitty drinks. We have very good drinks at a very reasonable price. A twenty dollar donation would soften our expense. This may be a CRAZY idea and this is why I am asking? Twenty dollars up front which is a bit more than $1.50 a month would be in place of a .25 price increase across the board on all products. For that twenty bucks you get your name placed on a sponsor like a trophy board and in be included in our monthly big birthday bash when it is your birthday. Then the ones that don’t hit them with the .25?

originolsin
01-10-2012, 02:17 PM
You might get 10 people to give you $20, however you may only have about 10 people complain about a quarter for the first month and then they will shut up and drink their drink because they like it there.
I have always tried to stay at the competitions price or just a tad higher and it has always worked out ok for me. "You charge $3 for a Bud Light and down the street charges $2.25" Then 6 months later down the street is out of business and they sit there and don't grumble as they hand you $3, go figure. Plus when I raised my prices by .50 I got rid of the trouble makers and the guys that would come in asking customers to buy them a beer or bum a cigarette.
As I write this, I have the guy next door cutting his prices by half trying to get people in the door(Not working either, I give him until June at the latest). Then we have another place that has dropped their dress code, dropped their door charge, and is now opening 4 days a week starting at 9pm. I give them until March.
I guess my point is that people whine for a bit about a price increase but they either get over it or go somewhere else. Sometimes the people that you lose over a quarter arent the kind of people you wanted there any way and you start getting people that didn't come in because of that guy. You are in business and competition seems to be dropping all around. You are being creative and that is the fire you need to stay ahead.

seed
01-10-2012, 05:58 PM
I really appreciate the feedback. The price increase seems like a more profitable venture for me. It will only cost the customer maybe $1.50 a day. It’s inflation!

Country Guy
01-11-2012, 08:51 AM
I agree that a $.25 increase will generate noise for a short period of time, and then folks will be used to it.

As an alternative to the $20 "sponsorship", you might consider a "membership" at a cost of $100. What can you offer these members? Reserved tables, VIP entry, free/half price appetizer, promo items (i.e. t-shirts) from your suppliers...

Let folks feel that your place is "their place". They are more likely to be loyal, and will tend to bring their friends and family to "their place".

I am only speaking from the hypothetical, as I am currently working on opening my first nightclub.

Best of luck!

"the oldest guy at the party"

seed
01-16-2012, 05:23 PM
Well, Instead of upping my affordable prices I decided to bring it into the modern age. This is going to sound ridicules to everyone. I am going into my third year and this morning I places measured pours on all liquor. Lots of lost revenue over the past couple of years! At one time I figured out how many drinks we were getting out of a half gallon. It was 27? With the measured pour I worked it today and it looks like 35 - 40? The ball does stick sometimes but I am into it for my wallets sake. No wonder the numbers look so bad! Stupid, Stupid, Stupid! My moment of clarity is coming from a transition from the bar, to the kitchen and then out of the scene. At the end of the day I take all responsibility but the reality is it is easy to get rolled in this industry! Bartenders, customers, yourself! The new mission statement for the year is “Don’t get high on your own supply “. Drying out!