Economics

[dudelovenext]

I can buy a fifth of vodka (a decent bottle) for $13.95. I can buy a drink at a bar, with one shot of this vodka, for (at the least) $5. How does this work? How can bars, etc. charge such an outrageous markup?

Comments

[badkandy.livejournal.com]

Well a 16 oz coke at McDonalds costs about $0.03 to make including the cup. But they charge about a dollar for it. Thats even more messed up. Although it won't get you drunk.

[dudelovenext.livejournal.com]

Hm. I wonder if it's just a markup on beverages? That just seems weird, though...

[dudelovenext.livejournal.com]

Health reasons aside, that's why I hate getting a pop from ANY resteraunt that doesn't have free refills. The mark-up is ridiculous!

[gshock99.livejournal.com]

because sadly alot of people will actually pay for drinks at bars... and bars know that ><. it REALLY is CRAZY. a bottle of smirnoff ice was like $5 o.o it really is unbelieveable.

[seattleotaku.livejournal.com]

Yeah, some lemon, some vodka, and a bit of sugar in a small glass for $5 vs. a few cents for many cups of freshed-squeezed lemongasmic... uh... ahem, anyway...

*finishes his lemonade, smiling*
(but alone... As Hamlet would say, "Ah, there's the rub.")

[dudelovenext.livejournal.com]

$5?!?! I don't drink those kinds of drinks at bars, so I wouldn't know...but geez, you can get one at the store for what, like $1.25?

[gshock99.livejournal.com]

lol yep... hence i didn't buy one. however, a rum and coke is about the same price when it's basically all ice @_@... it's nuts

[dudelovenext.livejournal.com]

Well, I guess it depends on where you go. Nikki was telling me of a club that gives you really, really strong drinks. Woot! :)

[weavermatic.livejournal.com]

Capitalism. You pay extra because you do it in their bar, not your house.

[dudelovenext.livejournal.com]

That doesn't make sense. Why aren't there "discount" bars? If you can go elsewhere for a lot more liquor for a lot less price...why has no one done it?

[seattleotaku.livejournal.com]

Those are called "liquor stores" and "supermarkets" (for the weaker stuff).

Trouble is, it's more "convenient" to stay in the club and get a drink at the bar on the side for $5 than bring in a box of stuff to mix your own (which health codes and liquor licenses won't let you do in others' establishments) or leave to hit the wine/beer section of the only places still open and come back... and people are willing to pay for convenience.

Same idea for "why aren't there no-smoking bars?" (in areas were it's not banned outright politically). Sure, theoretically "the market" (supply/demand) should have it available somewhere, but in practice...

[dudelovenext.livejournal.com]

Well, you can't drink at the liquor store or supermarket...not without getting into trouble. `^_^

Yeah, from what everyone is saying, it's more the atmosphere.

Hmm...I don't like the idea of a convenience charge...or it'd be okay if it didn't come to a 300% markup or something crazy like that.

[quetz.livejournal.com]

Because the bartender has to go out and buy food, pay rent, etc. not to mention the upkeep on the Bar itself.

[quetz.livejournal.com]

Of course, you could always come visit your Friendly Neighborhood Mixologist.

[dudelovenext.livejournal.com]

True dat. Much cheaper that way. :)

[dudelovenext.livejournal.com]

Still, for the number of people that go...it just seems like so much!

The first bar

[picakuma.livejournal.com]

So Abba what you doing? Why I’m making this here bar and putting seats for people to come sit and drink in my house. That’s a good idea we come and drink over here anyways so why not. Hey give me a drink ok that will be 10 denars WHAT!!?!?!? I can buy a bottle for only 4 why so much?! Well I have to pay for this stuff and up keep of the place. Yeah but 10 Denars!!. No one will pay that. Sure will and more so beside you guys leave money all over the place when you get tore up and this place will be swarming with ladies so if you guys want in you have to pay the price. HA no way man I still want pay that much forget it. (sexy lady walks in and takes a set, smiles at costumer and says) buy a lady a drink hmmm “wink” ahhhahhahah sure ahh can I have 2 please.

And so that’s part of way is we pay some crazy prices for drinks. Heyy Dude when you having a party over your place again huh huh huh.

Re: The first bar

[ff8squall.livejournal.com]

*laughs* That pretty much sums it up right there. XD

Re: The first bar

[dudelovenext.livejournal.com]

Wow, that's very well put. I didn't really think about the atmosphere...

Still, you would think that *someone* out there would do a "cheap drinks" bar...just to encourage more people to come.

*thinks*

But then, if the place is hip enough, it's usually always crowded. *thinks about Pioneer Square*

Another party? Not soon enough...-_- I need to get into a house again...

There Is No Competition

[hentainobaka.livejournal.com]

It isn't like you can bring your own boose.

[questionz.livejournal.com]

*nods*
Yeah that's about it. Many bars don't makea huge profit, just stay afloat.

[dudelovenext.livejournal.com]

True...atomosphere I can understand...

...

[elsmd.livejournal.com]

It's all overhead.

The justification is the social aspect and "atmosphere" of drinking at a bar.

Re: ...

[dudelovenext.livejournal.com]

Hmm...yeah...I'd figure it'd be more for the "atmosphere" than anything then...

[devilslayer.livejournal.com]

wait...did someone say vodka! o_o
mmmmm....^___^

heh it does suck ass to think I could make like...a hell of alot more white russian drinks for cheaaper then what a bar charges...crap though, you know that IN Russia, straight Vodka is .50 cents a bottle....THAT is a good rate ^_^

[dudelovenext.livejournal.com]

Yay for vodka! :) We need to go to Russia and stock up. :)

You guys/girls forgot the obvious

[chatturgha.livejournal.com]

One big reason is because girls are involved. Half the bars/clubs charge no cover for girls, and offer them cheap or free drinks. This is because girls attract guys. When girls are involved guys will show up. In general when they go to a bar they want to meet girls and naturally have a couple drinks.
The above poster was spot on with the over head costs as well. They have to pay rent for the land, all the equipment, employee's, etc.
And in general drinks bring in the highest profit margin for most food/bar locations.

Re: You guys/girls forgot the obvious

[dudelovenext.livejournal.com]

Well, that'd explain bars, clubs, etc...however, it doesn't explain places like Red Robin...though, places that like you just pay anyway no matter what you get. `^_^