Want to make your bar be the first to fill up after work and to stay packed until close?
Solution:
To keep a bar always hopping, try making drink prices based on how many people are in the bar.
Explanation:
People want to go to a bar where there are lots of other people. It’s a network effects situation: The more people that participate, the more that other people find it useful to participate. (Think of the usefulness of Facebook with 25 registered users vs 25 million, lots of people using it is a network effect.) People also want to drink for cheap. Once lots of people know how cheap drinks can get, more than the minimum amount will almost always be there.
In a way this is a never ending, glorified happy hour that’s more sensitive to supply and demand.
Example:
When there’s less than 20, beer is $1, well drinks are $2. When there’s less than 50, beer is $3, well is $4. Less than 100, beer is $4, well is $5. Once you’re near capacity, make beer $6 and well $8. Full capacity with a huge line outside? Up those prices again to $8 for beer and $10 for well.
Warning:
If implemented, economists may be a disproportionate share of your patrons!
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