Stock Market drink pricing system

  • Thread starter BenVitale
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In summary: If someone is looking to buy a drink for example, and the current price is $5.00, they could buy a drink, wait for the price to drop to $4.99, and then sell it on the market for $6.99.Yes, you could use arbitrage opportunities to buy drinks at a lower price and then sell them for a higher price. Also, you could use derivatives to buy a beer at a low price and sell it for a higher price a few days later. Or, you could use futures to buy a beer in advance and sell it at a higher price a few days later.
  • #1
BenVitale
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I'm fascinated by this new concept:

Youtube video : Using a Stock Market System for your Drink Pricing

And on the blog "The Drink Exchange"


The Drink Exchange is a stock market drink pricing system. The drink prices are displayed on TV monitors around the bar and the prices change based on demand. The Drink Exchange increases the bars revenue and customer base.


Read more ... Drink Exchange

And here ... Thread: Investors

Someone replied: only works in states that allow happy hour. mine doesn't

Could this concept work in your city, State or Province? Why? Why not?
 
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  • #2
No it would not work in PA or Utah. Alot of states regulate drink specials. The concept is that you cannot intice people to drink more than they would otherwise. Most states require promotions be approved by the LCB, or whatever your state calls it.

Though most states allow private clubs like Firehouse Bars and others to do things that commerical bars cannot. That is how they can have events that allow unlimited beer and food for a fixed price.
 
  • #3
I don't see why this should be illegal. In California, you can't give away for free more than 1 oz. of liquor, but I don't know of any restrictions that prevent prices from dropping to meet low demand. We did that all the time when I used to manage a bar in Long Beach a few years ago. Distributors were always giving us free bottles of something new they were promoting, and when nobody was buying it, we had a center shelf we kept all these bottles on and any drink containing them was $1, far lower than the price of anything else. Heck, sometimes the owner's son and I would just take bottles home and drink them ourselves because they still wouldn't move.

I do see a major problem with an auction exchange working, though: the seller is almost never present. How many bar owners are are the bar during all open hours to personally negotiate prices with potential buyers? People can bid high or low all they want, but what is the basis for bids being accepted? Do they simply start with a high bid and continue lowering until someone purchases? How the heck could that work? You've got five kegs or so of Bud Light. The whole bar can simply refuse to bid until the price drops to $0.10 or something. What's the incentive to bid higher? It's not like there's insufficient supply for everyone to get a drink. People only bid when multiple buyers want the same item. Bars don't only offer one of each drink. They tend to keep enough on hand to satisfy every possible customer for at least one week.
 
  • #4
Suppose a bar (or a sports bar) sells: Beer A, Beer B, Beer C

The more people buy Beer A, the more its price will rise, causing the prices of Beer B and Beer C to in this alcoholic stock market to fall.

People will rush to buy Beer B and Beer C, hence causing their prices to rise.

In this system, one has to set the initial prices and minimum prices to avoid loss due to "market dynamics"

I'm excited to see this system used during the Happy Hours and Football or Hockey seasons, where people are more in the mood for betting, hence will be inclined such a pricing-scheme.
 
  • #5
I don't see the point; drink prices are already set this way :-p
 
  • #6
Well, no.

As in the regular Stock Market game, people watch on screens the prices of commodities go up or down, in a bar that adopts the system, the screens will be located above the bar listing the drinks menu along side their prices. And, the game would be to watch each drink price rise and fall and invest in your beverage at just the right time.

I guess when the market crashes the bar owner will send a signal (bells, whistles and light effects) which would motivate the patrons to invest more, that is, buy more drinks.
 
  • #7
As in the regular Stock Market game, let's introduce the (exotic) financial instruments: Arbitrage, derivatives and futures.

We would expect to find customers arbitraging ... I know I would try.

An arbitrage opportunity is the opportunity to buy an asset at a low price then immediately selling it on a different market for a higher price.

Read more ...

Derivatives: Definition

Futures : Definition

Could you offer suggestions as to how to apply these financial instruments to the bar?
 

Related to Stock Market drink pricing system

What is a Stock Market drink pricing system?

A Stock Market drink pricing system is a system used by bars and restaurants to adjust the prices of drinks based on demand, similar to how prices of stocks are determined in financial markets. The prices of drinks can fluctuate in real-time depending on factors such as popularity, time of day, and supply and demand.

How does a Stock Market drink pricing system work?

A Stock Market drink pricing system typically uses software that tracks sales and inventory data to determine the prices of drinks. The system may also incorporate a dynamic pricing algorithm that takes into account factors such as popularity, time of day, and inventory levels to adjust prices in real-time. Customers can view the current prices of drinks on a digital menu board or through a mobile app.

What are the benefits of using a Stock Market drink pricing system?

Using a Stock Market drink pricing system can benefit both the bar/restaurant and the customers. The system allows the business to maximize profits by adjusting prices based on demand, and customers can potentially save money by purchasing drinks when they are priced lower. The system also creates a more interactive and engaging experience for customers.

Are there any drawbacks to a Stock Market drink pricing system?

There are some potential drawbacks to using a Stock Market drink pricing system. Some customers may find the constantly changing prices confusing or frustrating. Additionally, the system may favor popular or high-demand drinks, making it difficult for less popular drinks to sell at a higher price. There is also the risk of technical glitches or errors in the pricing algorithm.

Is a Stock Market drink pricing system ethical?

The ethics of a Stock Market drink pricing system can be debated. Some argue that it creates a fair market for drinks and allows businesses to maximize profits. Others argue that it can be manipulative and potentially take advantage of customers who may not be aware of the fluctuating prices. Ultimately, it is up to the individual to decide whether they believe the system is ethical or not.

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