MerchantOfEnnis
Full Member
Are publicans margins that tight that they really need to pass on these tiny increases to consumers?
If you slap 10c on a pint and you sell 100 pints, that gives you a grand total of €10 extra revenue. You'd be worried for any business that is so reliant on an extra €10.
You'd have to sell 10,000 pints for that 10c to even turn into a grand, which wouldn't even cover half the wages of a full time barkeep. And what pub in Cork is realistically selling 10k pints a week?
Given how sensitive consumers have become to prices following a number of increases, surely you wouldn't risk driving away anyone for the sake of 10c on a pint?
Granted I am not a publican so I could be way off, but I would have thought that in this difficult environment you'd rather absorb the increase rather than potentially alienate even more customers.
Furthermore, if you decide to absorb the increase but the pub next door increases their prices, surely you'll get a bounce in business that will offset not adding on the extra few cents?
If you slap 10c on a pint and you sell 100 pints, that gives you a grand total of €10 extra revenue. You'd be worried for any business that is so reliant on an extra €10.
You'd have to sell 10,000 pints for that 10c to even turn into a grand, which wouldn't even cover half the wages of a full time barkeep. And what pub in Cork is realistically selling 10k pints a week?
Given how sensitive consumers have become to prices following a number of increases, surely you wouldn't risk driving away anyone for the sake of 10c on a pint?
Granted I am not a publican so I could be way off, but I would have thought that in this difficult environment you'd rather absorb the increase rather than potentially alienate even more customers.
Furthermore, if you decide to absorb the increase but the pub next door increases their prices, surely you'll get a bounce in business that will offset not adding on the extra few cents?
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