Monday, December 27, 2010

Markets in Everything: Market-Based Beer Pricing

How much is a pint of beer worth?  Well, why not let market forces determine the price? That's exactly what will happen at Michigan's Kalamazoo Beer Exchange, where a variety of 28 tap beers will be priced according to market demand, and will fluctuate like stock prices in increments of 25 cents. 

3 Comments:

At 12/27/2010 8:22 PM, Blogger Jack Stephens said...

If it's based on demand, that will mean that the fizzy yellow beers will wind up priced higher than than better beers that are less popular.

 
At 12/28/2010 9:04 AM, Blogger morganovich said...

this seems to me to be the wrong way to apply this model. it just evens out consumption by brand.

what they ought to do is allow price to move based on demand for rounds of drinks so that those who want them more pay up to jump line once the bar is full.

that would maximize profit by allowing people to pay more for priority which is pure profit for the bar.

any time you can get people to thank you for paying more for the same item, it's a good idea to let them.

also note:

the existing system is vulnerable to beer scalpers. if i buy 40 of a popular beer the listed price, i'll spike the price for the next guy and sell (at a profit) in the middle.

 
At 12/28/2010 11:38 AM, Blogger Buddy R Pacifico said...

If I visit this establishment I will wait for the Double Hop IPAs to crash. When the panic reaches dispair I will jump in and purchase like Morgan in 1907 and Buffett in 2008. Where there is hops there is hope. This place looks fun.

 

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