Dynamic pricing is being tested in the bar business! Dynamic pricing has been used by the airline industry for decades and with the the advancement of technology it makes it easier to move prices based on immediate supply and demand. https://finance.yahoo.com/news/much-tequila-shot-price-always-161419926.html
Disneyland recently announced dynamic pricing with park entrance tickets. http://www.marketwatch.com/story/how-disneys-dynamic-pricing-could-benefit-some-consumers-2015-10-05
Some Universities have experimented with dynamic pricing too. Northwestern University saw a 162% increase in revenues as a result of dynamic pricing on the Ohio State game.
But not all are happy campers. University of Michigan stopped its dynamic pricing when they received too strong of a negative feedback.
But there are some trailblazers in the bar business giving it a shot!
A software company out of Los Angeles- The Drink Exchange - recently launched their product in a few San Diego bars. The patrons can watch the prices fluctuate minute by minute. The price fluctuations are dramatic, but one tequila bar saw price increase up to a dollar a shot in a matter of minutes while others may drop 50 cents in minutes.
Clearly dynamic pricing has entered several industries and why not the restaurant and bar business? Super bowl day or Cinco de Mayo are the prefect time to have dynamic pricing. It can limit the crowd yet maximize the restaurant's profits by pricing items higher during high demand periods. And it can drive traffic into the restaurant during lower demand periods.
Imagine having an Ap that communicates to your patrons what the dynamic prices are in your restaurant during the slow time. It will drive traffic to you.
Mel Jones is one of the premier restaurant brokers in the nation having published hundreds of articles on buying and selling a restaurant and bar business, selling thousands of restaurants in CA., WA and AZ and building one of the most copied business models in the brokerage industry. Mel started SellingRestaurants in 2004 with the one simple concept, give the buyers the information they need to make intelligent buying decisions without being pestered by a broker or hiding information, prepare the business for market by researching key details that make or break deals and educate the buyer on the buying process to create an intelligent buyer. Prior to SellingRestaurants, Mel was a Chief Financial Officer for Universal Music Group, the largest music company in the world. There he participated in more than $11.5 billion of merger and acquisition transactions. He also work for top companies such as Nestle Foods, USA. He hold a Bachelors in Business Administration Finance as well as attened Law School at Gonzaga University. Give Mel a call at 480.274.7000 or e-mail him at [email protected] if you have any questions.