TOPIC:

[quote:27egrt0h]A fixed cost is just that. If I sell €1k or €0 my fixed costs remain the same. I'm at a loss as to how one can justify different selling price of different volumes of the same beer on fixed costs[/quote:27egrt0h]

I 100% agree, Overheads are constant, and that's not what the gripe is, the gripe is why 2/3 of a pint isn't charges at 2/3 of the cost. Even with economy of scale, its ridiculous pricing

"CDow":qyz50jor wrote: I'm aware of bulk discounts / economies of scale. Your first post tried to justify the price differential on fixed cost, not you're justifying it on volume ordered. Which one is it? Is the GP on a large spirit less than on a regular measure?[/quote:qyz50jor]


The price of an item is driven by an element of fixed cost and an element of variable cost.

A bar may calculate that the fixed cost of every drink sold is 1 euro. e.g. the staff cost, cleaning cost, glass ware cost of serving a glass of miwadi is the same as serving a glass of beer.

Therefore, as volumes rise it can charge proportionately less and still maintain the exact same profit margin on each drink sold.

Off topic but Tesco are selling O'Haras bottles for €1.85 !!!

"Diablo":1n6au473 wrote: I think you were overcharged but I disagree on the above point.

When a drink is served in a bar there is large element of fixed cost for the bar, regardless of the size or cost price of the drink being served. The staff cost and overheads are basically the same for all sizes of beer served.[/quote:1n6au473]

You can make an argument that over the long run that staff costs are driven by the number of drinks served, but that doesn't apply to a lot of fixed costs - e.g. insurance, rent, rates, depreciation, or borrowing costs related to capital expenditure.

At the end of the day businesses cover their fixed costs by selling product for what they think the market will bear. That's fine, that's business. I think it's a shame that the perception is out there (and it's not just ATG) that the market will pay more for a 2/3 pint "responsible" measure of a stronger beer.

You could make your point by letting staff/management know that you will not purchase that quantity as you feel it is disproportionately priced.

"CDow":3nq8rtzm wrote: I was in Against the Grain last weekend. Had Voyager which was pretty ok. Had a black IPA by Sierra Nevada, can't remember the actual name. The SN was prices at €5.70 per pint and €2.85 for a 1/2 pint which is fair. However the schooner or 2/3 pint was priced at €4.60. My simple mind calculates the 2/3 pint at €3.80 (5.7 / 3 = 1.9, x 2 = 3.8 ) Either my maths are shockingly bad or that's a very hefty markup.[/quote:3nq8rtzm]

Could this just have been a mistake? That the "normal" SN beers are €5.70 a pint but the black IPA is not and is not actually priced on a pint basis at all but just (like the Thornbridge and Flying Dog beers) priced on a 2/3 pint basis?

Did you mention it at the time to the staff? They're usually good at responding to these things.