Just a thought

Some people told me once: it is ok that in Estonia the salary is lower – all is cheaper.

Is it? Ok, aside things like Computer, Cameras and mobile phones, these are more expensive. And most products in the supermarket.

But taxis are cheaper. Ok most of them. And … what else actually? I know what is not cheaper: Having a beer in town.

I mean, lately I went to Molly Malones. 3 beer 7,50 – with the bonus card, no idea what I would have payed otherwise. And then yesterday I just had a look on the prices in Schnitzelhaus: They offer 0.5 liter of Weissbier for 4.10 Euro. That means for bavarians: 8.20 Euros a liter. That is close to what they sell it for on the Oktoberfest.

Well I do think this is too expensive. And I am sure it could be cheaper and it should be cheaper. But why is it that expensive then? Simple answer when you ask the owners: People pay it. So in fact it is our fault. We, the customers, should react. And best reaction is: going for a drink only at those places where the prices are reasonable.

I once talked with an owner of a bar and I got this information: We used to have more customers. Then their number went down so we increased the prices. Sounds logical? Well not to me. I would lower the prices to attract more people to visit my place. So the question is: Would customers appreciate this and come more to my place where the drinks are cheaper? Of course, that place must be a nice one also it is not all about the price.

Brings me to the last point: what makes a bar a nice one so people go there. What are your parameters for that? Write me please!

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One thought on “Just a thought

  1. Increasing or lowering your prices is only about strategy. Do you have a classy place? different from the competition? High standard service? Then increasing prices has an interest, you support your positioning.

    However, in most cases, pubs, restaurants look pretty much alike and the ultimate difference is price. Comes also quality of service (some places have improved but it is still not a plus here), atmosphere..

    at the end, it’s all about volumes. Will I consume more or less? If you decrease prices, you’ll probably sell more… but decreasing prices is useless if the other parametres are not fine. If your place is not attractive, nobody will come!

    So it’s more about the whole package and improving quality.
    But if people are paying, then why not increase prices?

    I had the same attitude 2 years ago about prices. Yes many things are still too expensive but in general, basic food is affordable (milk, bread, pasta, butter, …) and cheaper than in “western” countries. With the euro, it is easy to compare. Is the ratio prices/revenues correct? that’s probably the question to be answered

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