930 Forums
=> GENERAL DISCUSSION => Topic started by: sweetcell on August 26, 2009, 10:43:50 am
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thought that yuenling was expensive now?
Brace yourself: Beer prices are going up
Brewers say rising commodity costs and lower volumes are forcing them to raise its price tags.
NEW YORK (CNNMoney.com) -- Beer drinkers beware: The cost of a cold one is going up.
Brewers across the globe are hiking prices to compensate for lower volumes and higher commodity costs in the recession.
Anheuser-Busch InBev, the world's largest brewer and maker of Budweiser, announced plans to raise prices Tuesday.
"We plan on taking price increases on a majority of volume and in a majority of markets this fall," Anheuser-Busch InBev said in a statement. "The increase helps cover some input costs."
The U.S.-Belgian brewer said prices will go up "across different price tiers" including its high and low-end brands.
The price hikes are part of a broader industry trend.
Heineken, best known for its Heineken and Amstel brands, said Tuesday that its global price increases have helped it turn profits despite sagging volumes.
Anheuser-Busch InBev (ABI) was formed in November 2008 when InBev, which brews Beck's and Stella Artois, bought St. Louis-based Anheuser-Busch for $52 billion.
The looming price hike comes as sales volumes in the brewing industry have declined. Anheuser-Busch InBev said earlier this month that total beer volumes were down 1.5% in the second quarter versus the same period last year.
Heineken, based in Amsterdam, said Tuesday that price increases helped the company offset the pull back in consumption. Heineken makes and brews 170 international beers and ciders, but is best known for its brands Heineken and Amstel.
"The economic and trading conditions remain difficult, and there will be continued pressure on volumes in the second half of 2009," CEO Jean-François van Boxmeer said in a statement.
http://money.cnn.com/2009/08/25/news/companies/anheuser_busch/index.htm
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Guess I picked a good time to go on the wagon....those Belgian Tripel prices were killing me as it was.
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Lets all guess the date a Yuengling reaches that $10 mark at Seth's establishments. I'll go with November 11th, 2010.
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Great.. I guess the $7 Budweiser at the 930 club can't be too far away..
All I know is my budget for beer is going down regardless of what happens to prices.
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Lets all guess the date a Yuengling reaches that $10 mark at Seth's establishments. I'll go with November 11th, 2010.
i'll take the under.
All I know is my budget for beer is going down regardless of what happens to prices.
that's precisely what got us in to this situation...
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Lets all guess the date a Yuengling reaches that $10 mark at Seth's establishments. I'll go with November 11th, 2010.
i'll take the under.
No, you actually have to pick a date. Closest wins.
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Lets all guess the date a Yuengling reaches that $10 mark at Seth's establishments. I'll go with November 11th, 2010.
i'll take the under.
All I know is my budget for beer is going down regardless of what happens to prices.
that's precisely what got us in to this situation...
I've carried the load long enough! Someone else will have to pick up the slack!
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Lets all guess the date a Yuengling reaches that $10 mark at Seth's establishments. I'll go with November 11th, 2010.
i'll take the under.
No, you actually have to pick a date. Closest wins.
01/01/10
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I would actually have to brace myself if I read an article that said beer prices were going to go down, not up.
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Lets all guess the date a Yuengling reaches that $10 mark at Seth's establishments. I'll go with November 11th, 2010.
i'll take the under.
No, you actually have to pick a date. Closest wins.
i was trying to make a funny... apparently i didn't.
ok then: March 1, 2011. enjoy single-digit priced beer for the next year and a half.
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It doesn't really matter to me as most of the time I now drink before the show and then just enjoy the concert...
But I think the 930 would be crazy to keep passing the hikes on to their customers as these are already consuming less.. SUCK IT UP SETH!!!
In a way InBevs strategy to me seems silly: consumption is going down because people can afford less so you INCREASE prices?
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But I think the 930 would be crazy to keep passing the hikes on to their customers as these are already consuming less.. SUCK IT UP SETH!!!
i take it you don't run a business... you expect seth to lose money on beer sales?
In a way InBevs strategy to me seems silly: consumption is going down because people can afford less so you INCREASE prices?
they're banking on the fact that they'll make more in higher prices than they'll lose to lower sales. look up "price elasticity".
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I'd venture to guess that at the typical show, after paying the band, staff, mortgage/rent, insurance and other general overhead involved, that a sizable chunk of the profits at 9:30 come from alcohol sales. So if prices go up, in order to maintain his profit he'll have to step in line or start cutting corners somewhere else. And off the top of my head I don't see too many places in a business like that to cut corners.
Insight Seth?
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But I think the 930 would be crazy to keep passing the hikes on to their customers as these are already consuming less.. SUCK IT UP SETH!!!
i take it you don't run a business... you expect seth to lose money on beer sales?
In a way InBevs strategy to me seems silly: consumption is going down because people can afford less so you INCREASE prices?
they're banking on the fact that they'll make more in higher prices than they'll lose to lower sales. look up "price elasticity".
i love it when sweetcell talks dirty. . .
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I'd venture to guess that at the typical show, after paying the band, staff, mortgage/rent, insurance and other general overhead involved, that a sizable chunk of the profits at 9:30 come from alcohol sales. So if prices go up, in order to maintain his profit he'll have to step in line or start cutting corners somewhere else. And off the top of my head I don't see too many places in a business like that to cut corners.
Insight Seth?
OH gee Sweetcell thinks I've never heard of price elasticity! Wow! Thanks Sweetcell for the tip!
I guess it comes down to how inelastic one thinks beer sales at the 930 are... At some point where you hike prices on beer you may have less gross sales revenue. Or maybe people will keep consuming the same regardless of price?.. WHy not $20 beers then?
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I'd venture to guess that at the typical show, after paying the band, staff, mortgage/rent, insurance and other general overhead involved, that a sizable chunk of the profits at 9:30 come from alcohol sales. So if prices go up, in order to maintain his profit he'll have to step in line or start cutting corners somewhere else. And off the top of my head I don't see too many places in a business like that to cut corners.
Insight Seth?
maybe he could take a bigger chunk of merch profits from the bands! that policy and the beer prices have been the only things that have irked me about the club... i'd rather pay a couple extra bucks in ticket prices than have the club tax the merch table
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WHy not $20 beers then?
cans of guinness at the pogues show were pretty close
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OH gee Sweetcell thinks I've never heard of price elasticity! Wow! Thanks Sweetcell for the tip!
I guess it comes down to how inelastic one thinks beer sales at the 930 are... At some point where you hike prices on beer you may have less gross sales revenue. Or maybe people will keep consuming the same regardless of price?.. WHy not $20 beers then?
You truly are the stupidest piece of shit ever to stink up this place.
Increasing a beer's price from $6 to $7 is a marginal increase in most people's mind, despite increasing the cost by over 16%. Do you think such an increase is going to drop liquor sales by 16%? Probably not. OTOH, increasing the price by $14 on an originally $6 beer passes a certain tipping point, upon which only the most alcoholic of patrons would partake.
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I'd venture to guess that at the typical show, after paying the band, staff, mortgage/rent, insurance and other general overhead involved, that a sizable chunk of the profits at 9:30 come from alcohol sales. So if prices go up, in order to maintain his profit he'll have to step in line or start cutting corners somewhere else. And off the top of my head I don't see too many places in a business like that to cut corners.
Insight Seth?
OH gee Sweetcell thinks I've never heard of price elasticity! Wow! Thanks Sweetcell for the tip!
I guess it comes down to how inelastic one thinks beer sales at the 930 are... At some point where you hike prices on beer you may have less gross sales revenue. Or maybe people will keep consuming the same regardless of price?.. WHy not $20 beers then?
well, i'd guess the more optimal response would be for the beer prices to reflect the demand for it- if it's a sold out show with an expected high amount of alcohol sales (say the pogues), then beer prices should go up to reflect the demand for the product; if it's a show that is sparsely attended, with an equal reduction in demand for alcohol, beer prices should go down......as it is, alcohol pricing reflects what seth thinks the market will bear all else being equal in order to achieve a certain level of profit.
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OH gee Sweetcell thinks I've never heard of price elasticity!
you are arguing as if you hadn't. just going with the flow.
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You truly are the stupidest piece of shit ever to stink up this place.
Considering some of the stupid turds that have been through this cyber toilet, that, my friends, is a serious statement.
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OH gee Sweetcell thinks I've never heard of price elasticity! Wow! Thanks Sweetcell for the tip!
I guess it comes down to how inelastic one thinks beer sales at the 930 are... At some point where you hike prices on beer you may have less gross sales revenue. Or maybe people will keep consuming the same regardless of price?.. WHy not $20 beers then?
You truly are the stupidest piece of shit ever to stink up this place.
Increasing a beer's price from $6 to $7 is a marginal increase in most people's mind, despite increasing the cost by over 16%. Do you think such an increase is going to drop liquor sales by 16%? Probably not. OTOH, increasing the price by $14 on an originally $6 beer passes a certain tipping point, upon which only the most alcoholic of patrons would partake.
The fact, ASSHOLE, is that beer consumption is price elastic. I'm not sure- and I'll leave determining the exact elasticity to the experts- but alcohol sales might decrease 16%. People might balk at paying $6 for a bottle of Budweiser. WHo knows?
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can we get a cat pic drinking a beer ;D
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People might balk at paying $6 for a bottle of Budweiser. WHo knows?
Beer is already at 5 a bottle. Increasing it another dollar is not going to stretch things so badly that 1 out of 5 people don't buy another beer. Simple conventional wisdom can tell you that; people love their alcohol, yo.
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People might balk at paying $6 for a bottle of Budweiser. WHo knows?
Beer is already at 5 a bottle. Increasing it another dollar is not going to stretch things so badly that 1 out of 5 people don't buy another beer. Simple conventional wisdom can tell you that; people love their alcohol, yo.
First of all Julian a big mandatory FUCK YOU ASSHOLE.
Thats opinion not conventional wisdom. People may love their alcohol but many love their money more. 1 out of 5 people may not buy that beer and people might think twice before getting that extra beer. People may decrease their average number of beers per show. Instead of having 4 beers people might have 3. Why not? Remember its not really $5 for a beer right now.. when you add the tip in its $6....
if it were so that increasing the price of bottle of bud by one dollar would result in increased gross sales why wouldn't it already cost $6?
Really the only person with the answer about the exact elasticity of beer consumption at the 930 is Seth/whoever runs concessions... and even they may not know exactly how the market would respond to increasing the price.
I will note that Live Nation is trying to increase beer sales by selling bigger beers at better (per ounce) prices.
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Seth's statement on this issue every time anyone's brought it up has been something to the effect of: he's a businessman and will charge as much as we're willing to pay, because he'd be stupid to do otherwise.
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a bottle of bud already costs $6, doesn't it? i'll never get more than one and it makes me more likely to skip the opening bands.
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Really the only person with the answer about the exact elasticity of beer consumption at the 930 is Seth/whoever runs concessions... and even they may not know exactly how the market would respond to increasing the price.
BTW, you make my point for me. When the powers-that-be are following through with the increased price model (as the article predicating this thread indicates), gee, there must be something to that. Unless now the person who knows the most about price elasticity isn't beer companies and promoters but they guy who thinks Baltimore venues are propped up by DC residents.
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Hutch and Julian should meet up for a beer summit soon.
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can we get a cat pic drinking a beer ;D
there are some great beer-related LOLs out there... i couldn't choose just one:
(http://img.moronail.net/img/8/7/1387.jpg)
(http://icanhascheezburger.files.wordpress.com/2008/05/funny-pictures-kitten-licks-beer-can.jpg)
(http://icanhascheezburger.files.wordpress.com/2008/01/funny-pictures-greedy-otter-beer-bud.jpg)
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I'm guessing Hutch learned his economic theory from Argentinian newspapers. I've heard similar ridiculous policy arguments from their officials....
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i'm just bummed hutch hasnt started a thread about lady gaga's wang
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Seth's statement on this issue every time anyone's brought it up has been something to the effect of: he's a businessman and will charge as much as we're willing to pay, because he'd be stupid to do otherwise.
And because of the cost, and his reaction, I don't drink at the club anymore. And I don't know too many people who do. I recognize i'm in the minority, but you have to wonder if the minority is having any impact.
I think the "regulars" who see shows frequently at the club fall more in the minority, drinking a beer or less on average. But the "irregulars", people who attend 5 shows a year or less, drop a boat load on alcohol as it is part of the experience. They are the same people who often end up talking their way through an entire show. I usually call them Iota'ers. I'm betting it is the irregulars who make up the difference and keep Seth and co happy. And rich.
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yeah I go on benders everytime I see a show there hence my tab being couple g's ;D
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I'm betting it is the irregulars who make up the difference and keep Seth and co happy. And rich.
i would have thought it was people like me - who go to a lot of shows AND drink regularly (and, as proven last night @ NIN, occasionally excessively...)
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Seth's statement on this issue every time anyone's brought it up has been something to the effect of: he's a businessman and will charge as much as we're willing to pay, because he'd be stupid to do otherwise.
And because of the cost, and his reaction, I don't drink at the club anymore. And I don't know too many people who do. I recognize i'm in the minority, but you have to wonder if the minority is having any impact.
I think the "regulars" who see shows frequently at the club fall more in the minority, drinking a beer or less on average. But the "irregulars", people who attend 5 shows a year or less, drop a boat load on alcohol as it is part of the experience. They are the same people who often end up talking their way through an entire show. I usually call them Iota'ers. I'm betting it is the irregulars who make up the difference and keep Seth and co happy. And rich.
I agree with you, on both counts. I stopped drinking at 930 Club when I was charged $16 for a double Stoli, and I agree that those of us on this messageboard are not indicative of the average 930 Club denizen who becomes an alcoholic every time they attend a concert.
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Really the only person with the answer about the exact elasticity of beer consumption at the 930 is Seth/whoever runs concessions... and even they may not know exactly how the market would respond to increasing the price.
BTW, you make my point for me. When the powers-that-be are following through with the increased price model (as the article predicating this thread indicates), gee, there must be something to that. Unless now the person who knows the most about price elasticity isn't beer companies and promoters but they guy who thinks Baltimore venues are propped up by DC residents.
Companies always do the right thing? This is crazy. there are dozens of examples of companies that have made mistakes in pricing. Perhaps Inbev will have more gross sales but that does not mean that the 930 will if they pass on the hike to the consumer. There is a difference. Also, why not look at it the opposite way: what if the 930 reduced beer prices! Might they not sell more beer and make more money (even after paying for the cost)?.. At the recent shows (surely not all) I've been to I've noticed hardly anyone drinking.. Its anecdotal but thats not the way I remember it.
By the way I said that certain shows in Baltimore were propped up by DC residents when these shows weren't an option in DC. I stand by that. I'm sorry you wish to keep distorting...
Look you want to insult and be rude go for it. You're just an asshole on an internet forum.. not the first and not the last.
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I'm guessing Hutch learned his economic theory from Argentinian newspapers. I've heard similar ridiculous policy arguments from their officials....
Gee thanks man.
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I agree with you, on both counts. I stopped drinking at 930 Club when I was charged $16 for a double Stoli, and I agree that those of us on this messageboard are not indicative of the average 930 Club denizen who becomes an alcoholic every time they attend a concert.
This reminded me of a Caps game a friend of mine went to last year. We were getting well hammered and I was waiting in line at one of the liquor stands. I offered to pick up the next round and my friend ran to can while I waited in the line. I ordered two double vokas and they told me I couldn't get that many by myself..but just then my friend came back so the lady served them up and and said "that will be $32" (and bet your ass they weren't serving Stoli). My jaw nearly hit the ground..luckily my bud kindly intervened and pitched in on the drinks with me.
Hockey games may not be quite as much fun next year when i'm not pounding beers the whole time, but it will sure be less expensive. Or maybe I'll be able to concentrate on the game more and enjoy it even more. Who knows. One thing is for sure - substances hate me, so I'm counting on all of you to drink an extra one for me.
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I agree with you, on both counts. I stopped drinking at 930 Club when I was charged $16 for a double Stoli, and I agree that those of us on this messageboard are not indicative of the average 930 Club denizen who becomes an alcoholic every time they attend a concert.
This reminded me of a Caps game a friend of mine went to last year. We were getting well hammered and I was waiting in line at one of the liquor stands. I offered to pick up the next round and my friend ran to can while I waited in the line. I ordered two double vokas and they told me I couldn't get that many by myself..but just then my friend came back so the lady served them up and and said "that will be $32" (and bet your ass they weren't serving Stoli). My jaw nearly hit the ground..luckily my bud kindly intervened and pitched in on the drinks with me.
That's wild.
I'm a reasonable guy, I understand they have to make money on the liquor sales, but those prices were just too much. If it was Jean Marc XO or maybe even Grey Goose, then OK at $8/per. But Stoli? On the vodka cost scale, it's in the lower half. In Virginia, a fifth of Stoli is $20, and we're expensive because we have a mandatory 20% liquor tax built-in to our prices. So in DC (which is typically less for liquor anyay), I'm going to guess about $16-17 for a fifth of Stoli? Does that sound right to anyone? Charging me the fifth price for a double cocktail of it? Insane.
I will give them, as Econo pointed out when I first posted this, that to the club's credit, it was a true "double" and fairly strong. Just not $16 strong.
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double jack and cokes are $14 at my local bar. and i live in the burbs
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You know its funny that everyone writing that the price of alcohol at the 930 continuing to go up will only increase revenue (for the 930) to add that they've stopped buying alcohol at the 930 because of the high prices; but of course OTHER people are all continuing to drink the same amount regardless of price!
I guess I'm here to say that I buy less alcohol at the 930 and I'm not so sure from what I see that others aren't spending less..
Moreover, I actually have numbers of many venues that have seen concession sales go down and I don't see increasing the price helping out. I don't believe that increasing beer prices by a dollar at the 930 in the current environment will result in more profit for the 930. I could be wrong though...
Lets wait and see though.. if Julian is correct- and some of the other posters- we should imminently see beer prices go up at the 930 because since InBev is raising its prices and the average consumer at the 930 doesn't mind it would be stupid not to raise beer prices that "marginal" dollar no one cares about.... In fact many have written that very soon we will have to pay $10 for a yuengling at the 930. I dont' belive that will happen any time soon barring an unprecedented inflationary spike...Then all bets are off..
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I rarely pay for drinks. I'm that charming....
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you beat me to it sweet . . . but this is one of favs:
(http://pro.corbis.com/images/NA002599.jpg?size=67&uid=2DFFCAB8-27F9-41F0-90A0-92FC58A7660F)
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i'm just bummed hutch hasnt started a thread about lady gaga's wang
(http://www.harshreviewer.com/wp-content/uploads/2009/08/lady-gaga-hermaphrodite-picture.jpg)
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Just to clear things up.. I think Seth's response on beer prices was that his hand was forced on the prices, because his kids wanted silly things like clothes.. or something to that affect.
Nevertheless, like most people here I stopped drinking at the club a long while ago, so if they raised prices in response to the general price of beer being raised, I wouldn't notice. A sixer of Bells or whatever I consume before the show will relatively remain unchanged from it's current 8.49 or whatever it is.
The main argument I hear from people I go with about the clubs beer/booze is the lack of a really low price point beer. It's a forgone conclusion that no one in the group is going to pay 6/7 bucks a beer all night long, but there are quite a few who'd buy quite a few if the club offered 1.50/2.00 PBR's or some such similar beer. Granted, I don't know many places at all, if any, in the DC area that do that. Alley Katz is about the only thing that comes to mind and that's A. in Richmond, and B. not quite the 930 club, so the comparison is quite pale, but that's often what I hear referenced.
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Dunno about the rest of the DC venues but I'm pretty sure Natty Boh bottles are still $3 at Sonar. I seem to recall not so long ago when they were $2/2.50 at Rams Head.
Club Firestone in Orlando charged me $5 for PBR this summer. Not much of an incentive to drink swill.
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I don't see it as realistic for the 930 to have a $1.50/$2 beer. This is DC not Topeka, Kansas or Baltimore or that shithole Richmond. But the 930 is at the other extreme and dangerously close if not already at the point where its gouging customers.
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So Im a bit confused (considering Ive not been to the 9:30 Club in awhile), but what are beer prices at currently? I remember them not being so cheap, but also not unaffordable.
And it seems up here, plenty of people pay $6 for beers all night long and dont complain. Or maybe we're just used to higher prices up here.
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So Im a bit confused (considering Ive not been to the 9:30 Club in awhile), but what are beer prices at currently? I remember them not being so cheap, but also not unaffordable.
And it seems up here, plenty of people pay $6 for beers all night long and dont complain. Or maybe we're just used to higher prices up here.
I think its $5 for budweiser bottle, and $6 for a lot of drafts.. not sure if there are higher price levels... I think maybe Stellas are $7?
By "up here" I take it you mean NYC? I think DC prices in the past 15 yeas have gotten closer to NYC prices.
I feel like there were $3 bottles less than 10 years ago....
ANyways, if affordable is a $5 bottle of Bud then I guess its affordable...
Sorry I can't be more helpful..
I guess I always add the tip in automatically so to me thats $6 for a bottle of bud or $7 for a yuengling..
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Don't worry, Seth. I still drink plenty. :)
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Anyways, thread wasn't about complaining about 930 prices.. it seemed to devolve into a discussion about upcoming price hikes for beer at the 930 given Inbevs decision to charge more for its beer.
I wrote that it seemed odd to hike prices in a recession when you're selling less because people have less income.
I still think its odd to hike prices in a recession. You don't increase taxes in a recession and you don't charge more for products when their demand is decreasing (which seemed to be mentioned in the Inbev article). In fact you'd probably be best advised to charge less!
You wonder if we're possibly heading into stagflation.
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>>>Hockey games may not be quite as much fun next year when i'm not pounding beers the whole time, but it will sure be less expensive.
For 7pm games there are some happy hour bargains in the neighborhood. I'll often get to LaTasca before a game for a couple $3.50 fairly deep glasses of red
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You wonder if we're possibly heading into stagflation.
ok sir, please stay calm - everything is going to be alright. i need you to step away from the economics terminology, niiiiiiice and slow. don't want any surprises, 'cause no one like surprises, right? thaaaat right, just step away and no one gets hurt...
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You wonder if we're possibly heading into stagflation.
ok sir, please stay calm - everything is going to be alright. i need you to step away from the economics terminology, niiiiiiice and slow. don't want any surprises, 'cause no one like surprises, right? thaaaat right, just step away and no one gets hurt...
yeah I really transmitted panic there!
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>>>Hockey games may not be quite as much fun next year when i'm not pounding beers the whole time, but it will sure be less expensive.
For 7pm games there are some happy hour bargains in the neighborhood. I'll often get to LaTasca before a game for a couple $3.50 fairly deep glasses of red
i like matchbox for rogue shakespearean stout
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just bring in a flask, seth won't mind ;D
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just bring in a flask, seth won't mind ;D
and joints. the scary looking guy loves people with joints. ;)
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I don't drink at the 930, but I do drink at the Black Cat. If the Black Cat can sell PBR drafts for $3.50 I don't see why 930 can't. I also think the Black Cat has nicer bar tenders, but that's for a different thread. Even if thre 930 sold PBR drafts for $4.50 I'd be more inclined to partake. The last beer I got at the 930 was a Rolling Rock @ $7 and that is not acceptable for pale piss in a red party cup.
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just bring in a flask, seth won't mind ;D
and joints. the scary looking guy loves people with joints. ;)
And your own outside food! His ear extenders can double as salad plates for patrons!
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just bring in a flask, seth won't mind ;D
and joints. the scary looking guy loves people with joints. ;)
And your own outside food! His ear extenders can double as salad plates for patrons!
actually, i was thinking of the shorter, scary looking guy. ;D
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(http://4.bp.blogspot.com/_djgssszshgM/Rygl-T4csTI/AAAAAAAAAKw/hRyCYpaTwhs/s400/stagflation_front.jpg)