Pub 2311 p18-19 space leader 18/11/09 16:38 Page 19
www.thepublican.com thePublican Monday 23/11/09 19
Opinion This Week
‘If a customer believes they are getting a good
quality product with good service they will willingly
pay more for it, and this is the way publicans are
being advised to go to beat falling sales rather
than panicking and slashing prices’
Editor’s Comment by Caroline Nodder
Email carolinen@thepublican.com
The Publican has been championing the idea of minimum and you are entering a game of chicken with your
pricing, mainly as a way of preventing supermarkets from competitors. You are gambling on the fact they will go out of
continuing to sell alcohol so cheaply it encourages people to business through lost custom before you are forced out of
drink dangerous amounts before they even leave home. business by your own unprofitable pricing. And when times
But there are some wider issues to do with pricing that do pick up – which they inevitably will – your customers
are affecting pubs at the moment. won’t take too kindly to you suddenly doubling your prices
This week we feature the story of one bar offering 69p so you will be stuck in a low-priced rut.
drinks (see News, page 7). Now I remember the days of the At a recent meeting of our Publican Directors Club there
student night ‘50p per pint’ happy hour in my old university was some interesting discussions around pricing, in
union and I have to say it had two inevitable outcomes. A particular the stance some managed chains have taken in
packed bar. And some very ill students. introducing bargain basement pricing on food and drink.
That was many years ago now, but the principle remains Wetherspoons, in particular, came in for some criticism for
today. And in a recession some pubs and bars are certainly selling almost entirely on price, going against what much of
testing it out. Sure, in certain areas slashing your prices will the rest of the pub sector has been focusing on – ie added
pull in the customers. It may well see you gaining market value and quality. This was seen by some as “disloyal” to the
share on your nearest competitors. But at what price? wider industry, though there is no denying that Wether-
Whether or not licensee Barbara Vowles has introduced spoons has thrived on it thus far and can use its buying
her particular 69p drink offer as a publicity stunt or not, it power to save on costs obviously.
inevitably raises the issue of responsible retailing. Now 69p Our 2009 Food Report (see inside this issue) also
is not a lot. You could have seven drinks for a fiver and still highlights the issue, with experts agreeing that pricing is not
have enough change for a packet of crisps. And, regardless as important to customers as perceived value. If a customer
of whether or not you might then go on to be ill, or to cause believes they are getting a good quality product with good
trouble either inside or outside the establishment in service they will willingly pay more for it, and this is the way
question, how much money can a licensee really make at publicans are being advised to go to beat falling sales rather
those prices? than panicking and slashing prices. Pubs are expensive to
In my view, that kind of pricing is not just irresponsible, it run, and publicans simply can’t afford to sell themselves
makes absolutely no business sense. Slash your prices now short price-wise if they are to survive long term.
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