Originally Posted by
tarquinbeech
I'm going to play Devils Advocate here, but yes....there is a certain Brewery model that we tinkered around with in the 90s, where selling LESS beer makes you more money.
Assume beer cost at 2012 prices (sold my last bar then) is £1 pint cost, add VAT then double to cover all staff costs, utilities etc gives you £2.50 pint retail with a healthy net profit of 20% in the old sky rocket.........however, if you treble the cost price to £3.60 you lose SOME customers BUT, you use a lot less staff, less glasses, less wear-n-tear on carpets, seats, less security, less hassle plus you keep the riff-raff away.....obviously if you lose HALF your customers you are back to square one in this case.....so as long as he doesn't lose half his trade, AH is making more money by selling less