Price of a pint looks set to soar

[full back]

It is the price of drink in the supermarkets etc that is squeezing the small publican here. (there are many other reasons but this seems to be the topic we are on).  

The supermarkets are doing drink cheaper than everyone, not just the small publican
I find it hard to have much sympathy with them to be honest, when the mark-up on the 3 items discussed are so high
A small publican could cut the cost on a lost of items in the pub & still be making way over 100%

How can a small publican compete with the bulk purchasing power, lower distribution costs and the high stock turnover (not forgetting the diversity products it sells) of a massive supermarket chain? Also supermarkets sell drink (or many products in fact) at a loss or with no markup just to attract you in. They take a hit on this as they know they will make it back from sales from other produce/products.

Who is arguing with you?
I said supermarkets are doing it cheaper than everyone

The point I was making was to do with the massive mark-up on certain items in pubs, be the large chains or local ones

[Franko]

Yes, the markups are high – but they need to be.  (Though not as high as the 'hundreds of percent' that has been mentioned). The problem with a small pub is that the cost of overheads and the size of the pub are not directly correlated.  Double the size of a pub doesn't mean double the overheads.  The smaller pubs also have to sell the drink cheaper than these larger establishments because they generally provide for a sector of the population who typically would have less money to spend.  I can honestly assure you that if you are to take a pub and compare it with, for example, a builder or a car salesman of similar turnover you will find that the profits with the pub are quite a bit less.

[full back]

(Though not as high as the 'hundreds of percent' that has been mentioned).

Bottles
Spirits
Mixers

I can assure you there is at least 150% and more in some cases being marked up on these products, no matter the size of the pub

[thebigfella]

(Though not as high as the 'hundreds of percent' that has been mentioned).

Bottles
Spirits
Mixers

I can assure you there is at least 150% and more in some cases being marked up on these products, no matter the size of the pub

Its always been the case these products have had a high mark up, so why is it suddenly such an issue?

[Franko]

Ok but you are playing it fast and loose when you are describing 150 as 'hundreds'.  Very politician-esque...

[full back]

Ok but you are playing it fast and loose when you are describing 150 as 'hundreds'.  Very politician-esque...

OK Franko, 200% at least on those 3 products 

[Doogie Browser]

Pubs are closing as all businesses in all walks of life feel the squeeze, people are cutting back on their luxury items and the trip tp the pub falls into this category.      

[Franko]

Pubs are closing as all businesses in all walks of life feel the squeeze, people are cutting back on their luxury items and the trip tp the pub falls into this category.      

Exactly... any why.. because the profits they make do not cover expenses and thus the business is not viable.  So how then can anyone say they are ripping people off???

[Puckoon]

Shouldnt a pub think about offering a bit of value at the minute? While numbers of clients are falling, people are still drinking, at least here in Reno.

Wouldnt it be better to sell two or three times as many drinks for 10-20 pence less than continuing to give zero value to the punter?

Ive long said that there is zero value for money in the hospitality business in Ireland.

BTW, Those splits and mixers are a small gold mine for bars at home.

[Franko]

Ok but you are playing it fast and loose when you are describing 150 as 'hundreds'.  Very politician-esque...

OK Franko, 200% at least on those 3 products 

Right oh... the exact amount of the markup is really immaterial, my point still stands - it is necessary.

[Franko]

Shouldnt a pub think about offering a bit of value at the minute? While numbers of clients are falling, people are still drinking, at least here in Reno.

Wouldnt it be better to sell two or three times as many drinks for 10-20 pence less than continuing to give zero value to the punter?

Ive long said that there is zero value for money in the hospitality business in Ireland.

BTW, Those splits and mixers are a small gold mine for bars at home.

Correct - and many if not most pubs do try this - through happy hours and various other drink promos.  But selling drink at a loss to try and entice customers in cannot be carried on for any great length of time.  It is also frowned upon by the the public and the law (and may soon be illegal) and in most cases it doesn't exactly attract the finest people.

[Doogie Browser]

Pubs are closing as all businesses in all walks of life feel the squeeze, people are cutting back on their luxury items and the trip tp the pub falls into this category.      

Exactly... any why.. because the profits they make do not cover expenses and thus the business is not viable.  So how then can anyone say they are ripping people off???

So what do they do, increase prices to get customers in who cannot afford to go in the first place?   

[Puckoon]

Lets be honest here franko - if you are in the know maybe you can be more accurate for me. How close are cost prices to the price put on the consumer?

I doubt very much there is less than 50-60p a drink.

[full back]

Shouldnt a pub think about offering a bit of value at the minute? While numbers of clients are falling, people are still drinking, at least here in Reno.

Wouldnt it be better to sell two or three times as many drinks for 10-20 pence less than continuing to give zero value to the punter?

Ive long said that there is zero value for money in the hospitality business in Ireland.

BTW, Those splits and mixers are a small gold mine for bars at home.

Correct - and many if not most pubs do try this - through happy hours and various other drink promos.  But selling drink at a loss to try and entice customers in cannot be carried on for any great length of time.  It is also frowned upon by the the public and the law (and may soon be illegal) and in most cases it doesn't exactly attract the finest people.

Pubs would need to be selling very cheap drink to sell drinks at a loss
If they knock a couple of pence off their drinks they wouldnt be operating at a loss, thats for sure

[Franko]

Pubs are closing as all businesses in all walks of life feel the squeeze, people are cutting back on their luxury items and the trip tp the pub falls into this category.      

Exactly... any why.. because the profits they make do not cover expenses and thus the business is not viable.  So how then can anyone say they are ripping people off???

So what do they do, increase prices to get customers in who cannot afford to go in the first place?   

What's the alternative?  Cos if you have one I know a great many people would like to hear it?