Joe
06-12-2003, 01:21 AM
Here's one that contemplates the concept of price point promotions. Is it your belief or pratice as an operator that placing specials such as $1 long necks or $2 vodka drinks is merely a tactic to attract guests to your venue on any given night? In other words, do you believe or have you noticed that even when you have success with these types of promotions, that guests tend to drink their share of the rest of the bar as well?
For example, a GM of ours tells the story of doing dollar long necks as a lead product price promotion, selling $2400 in that special, (100 cases), but doing nearly $10,000 at the bar and an additional 2000 at the door. The perfect expample of what I mean!
So basically, my question is, do you find this to be true as well? Or are your guests only consuming the specially priced product? Do you look at other operators who do this type of promotion as idiots? Do you think "they can't be making any money that night, with one dollar longnecks"?
Something to think about....as always, I'm interested in your thoughts.
Joe
SVC
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By Michael Black on Tuesday, July 18, 2000 - 04:29 am:
IF you Must do a price break promotion, and in certain cases you may be wise to do so,I too would recommend a specific beer or drink for exactly the same reasoning.I probably would make it even more specific like Bud longnecks or preferably, less favorite liquor drink or slow selling beer.I would avoid a general price promotions of quarter drink nights or $2 U Call it which is counter productive to the above example.
As I stated before, I am usually against any price wars where we just hurt ourselves, however this is the way to go, preferably on a slower night like Sun- Wed or in some very price-sensitive markets or just aimed at a target market that is very price -sensitive.If, and only if, you can get the people in where you greatly increase your door and non-sale liquor where ultimately your bottomline is greatly improved then I am all for it.As usual, it all depends on the specific situation, club, and market.Ultimately, we still have to back it up with a great club and party.Just my 2 cents- Mike
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By Gina B. on Tuesday, July 18, 2000 - 02:22 pm:
Definitely Mike!
Every price promo has it's place & time, and if you're using them on a Friday or Saturday night you might need a little more work in other areas than pricing.
For example, a GM of ours tells the story of doing dollar long necks as a lead product price promotion, selling $2400 in that special, (100 cases), but doing nearly $10,000 at the bar and an additional 2000 at the door. The perfect expample of what I mean!
So basically, my question is, do you find this to be true as well? Or are your guests only consuming the specially priced product? Do you look at other operators who do this type of promotion as idiots? Do you think "they can't be making any money that night, with one dollar longnecks"?
Something to think about....as always, I'm interested in your thoughts.
Joe
SVC
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By Michael Black on Tuesday, July 18, 2000 - 04:29 am:
IF you Must do a price break promotion, and in certain cases you may be wise to do so,I too would recommend a specific beer or drink for exactly the same reasoning.I probably would make it even more specific like Bud longnecks or preferably, less favorite liquor drink or slow selling beer.I would avoid a general price promotions of quarter drink nights or $2 U Call it which is counter productive to the above example.
As I stated before, I am usually against any price wars where we just hurt ourselves, however this is the way to go, preferably on a slower night like Sun- Wed or in some very price-sensitive markets or just aimed at a target market that is very price -sensitive.If, and only if, you can get the people in where you greatly increase your door and non-sale liquor where ultimately your bottomline is greatly improved then I am all for it.As usual, it all depends on the specific situation, club, and market.Ultimately, we still have to back it up with a great club and party.Just my 2 cents- Mike
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By Gina B. on Tuesday, July 18, 2000 - 02:22 pm:
Definitely Mike!
Every price promo has it's place & time, and if you're using them on a Friday or Saturday night you might need a little more work in other areas than pricing.