Wednesday 25 June 2014

Overpriced Drinks = Less Customers

Personal Alcohol Licences

I had a business meeting yesterday at a certain establishment in Cheltenham. I had a £3.50 pot of Tea (proper tea with leaves), and the person I met with had a 500ml bottle of beer.

Here is what the brewer of the beer says about the brew; it is a tastefully dry, crisp and full-flavoured ale, brewed with skill and passion using the finest organically grown Pale Ale malt and organically farmed English hops. It contains wheat and barley malt. 5.0% vol. Knowing the brewer as I do and knowing the price they charge if you order on their website at around £2.10 a bottle - well worth it say I. Not sure the £6.50 I had to pay for it in this particular hostelry had £4.40 worth of “added value” though.

On getting back to my office I reflected on the price I had been charged and thought “surely they made a mistake?”, and so I sent a polite email asking if the price was correct. I had a prompt and courteous reply assuring me it is indeed their price point at £6.50 (for slightly less than pint).

On my way back to my office I had to then fill up with Diesel, which was £1.32, a litre. So: A gallon of diesel is around £6 and a gallon of beer in this particular establishment is around £59.

I have always thought that Diesel was more difficult to find, mine, produce, refine and transport half way across the world than beer. Firstly, to produce Diesel; fossil fuels are mined in the form of crude oil. The oil is extracted from inside the earth, lots of other processes happen and then shipped across the oceans. This, versus beer brewed in Bristol with the main ingredient being wheat, malted barley, yeast, hops and water and delivered 50 miles up the M5. I wonder if the owners of the said establishment ever consider why there were only two of us in the place enjoying the pleasure of handing over £6.50 for a beer (about one hours work on minimum wage) and paying around 9 times the price of Diesel.

I have withheld the name of the place as their lawyers probably earn a lot. But whilst we train publicans how to make profit we also train them how to price competitively and how to ensure customer come back! I shall NOT be rushing back!


Martin Read CMBII
Managing Director of www.inn-dispensable.com Personal Licence Courses

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