Publicans to reduce drink prices

Mr E

Are they finally copping on?

http://breaking.examiner.ie/2004/09/27/story168307.html

Publicans ‘prepared to reduce drink prices by 30 cents’

Publicans are reportedly prepared to reduce the price of a pint by 30 cents in an effort to boost business following a drop in sales in recent months.

Reports this morning said the Vintners Federation of Ireland, which represents rural publicans, also wanted the Government to reduce excise duty by 20 cents-a-pint.

The federation has reportedly told the Minister for Finance that it will reduce the price of a pint by 50 cents if the reduction in excise duty is forthcoming.

The VFI has blamed the workplace smoking ban for a 25% drop in sales in the past six months and has warned that the situation could get worse during the winter months.

Its national executive is due to meet in Athlone this week to discuss the matter.

Cabaal

imho I think its the workplace ban and people just got sick of paying high prices, I know I did..
* I don't even smoke

Lafortezza

I think they've finally realised that raising drink prices to boost flagging revenue is not the way to go. A friend of mine mentioned that it is now possible to get Dutch Gold on tap. Seeing as the cost would be tiny student bars could probably afford to sell a pint of Dutch for about €2 and still make reasonable profit, and they'd be packed.

vibe666

i think everyone is missing the point.

mr. martin's new baby is to reduce the amount people drink, and his last effort has already got the ball rolling, there's no way he's going to throw that away by making drink cheaper.

look at the papers over the last few months since the smoking ban telling us we all drink too much. the smoking ban has reduced the amount we drink (in pubs at least) which has to be a good thing for our overall health as a nation.

it would be interesting to see if off licences have taken more money since the smoking ban or if there's an overall drop in drink sales across the board.

something to think about anyway.

ixoy

Got to agree with vibe666 here. I can't see the government reducing the excise duty on drink. If anything they're more likely to increase it. Their aim is reduce our drink levels and the high prices seem to be actually working. Price reduction will only be done by the publicans again, not by any government initiative and I'm almost in agreement with it. Almost...

viking

mr. martin's new baby is to reduce the amount people drink, and his last effort has already got the ball rolling, there's no way he's going to throw that away by making drink cheaper.

Correct.

The government will not reduce excise on drink, but what they could do is "propose" a 20 cent increase on drink in the next budget. The gov. could then say we will hold off on this increase if the VFI drop prices.

Effectively meeting the VFI's demands.

Viking

vibe666

hey I was right, woohoo!

it's nice to have an opinion that people seem to agree with sometimes.

sorry, i'll get back under my rock now.

RuggieBear

Yeah, i gotta agree it's a health measure.

Still the Indo made me laugh just now....it states that in many areas the price of a pint would come down to €3 if 50c was taken off the price.

I live in Dublin...the cheapest i've seen a pint is 3.75. Obviously Dublin isn't one of these "areas". I've got to the stage where anything even near €4, i consider "good value" :eek:

anyway, old argument. I'll stop now.

spongebob

vibe666 wrote:

mr. martin's new baby is to reduce the amount people drink, and his last effort has already got the ball rolling, there's no way he's going to throw that away by making drink cheaper.

The offer from the publicans is for the Pint only, not for double Vodkas and certainly not for the can of Red Bull . A lot of the drink problems in recent years are stuff like Buckfast Drinking outside and not drinking in Pubs themselves .

As long as people want to go to a pub or club they will behave accordingly , If they intend to go to neither they will hammer the Bucky and then wander into town not caring how pished they are. I bet the yobbos who did for the poor Lithuanian last week in Dublin were not in a pub, they were probably bush drinking the Bucky instead.

M

Tazz T

The Flowing Tide in Dublin has knocked a euro off the price of a pint of Fosters in response to Guinness raising the prices - 3.60, I believe it is now.

chump

I've said this in another post somewhere
But Handles (well it has a new name now) near christcurch is selling pints for 3.50, and 3euro for guinness... all the time... excellent price.
Saw another pub with an ad for 3.50pints in the window on the way down there.
I think pubs are realising that they have to attract us into them!

Xterminator

Well it took them long enough, but at last publicans are begining to feel the pinch!

Hopefully they might consider doing something about the cost of softdrinks next!

X

leeroybrown

vibe666 wrote:

it would be interesting to see if off licences have taken more money since the smoking ban or if there's an overall drop in drink sales across the board.

If I remember correctly Diageo are reporting approximately a 5% reduction in their sales to bars (that's prior to the Guinness/Heineken issue) and a 12% increase in sales to off licenses.

simonm2

I am constantly amazed by the way the media deal with pubs. RTE has on numerous occasions published stories to where publicans lament falling sales. When you look at the article you see something like "pub sales (volume) down 5%, turnover up 7%". I recall two specific instances - once early Feb (Jan sales down compared to Xmas - surprise surprise) where there was effectively a 10% price increase being reported and again in August where the price increase was another 7% - but in both cases it was "Oh the poor publicans are loosing out" ...

I moved back to Ireland in 2000 (and am so fed up that I am on the point of moving out again) and have not been in a pub in Ireland more than 6-7 times in that period. They were too dirty and smelly and too dear. Since the smoking ban, some of them as less nasally challenging I'll admit - but I've plain and simple lost the habit. I settled for some Lidl Pils (the 6 x 500 mls @ 6.99) which is a better value proposition than anything in any pub in the country, and the 9.99 Cremant de Jura from Aldi which is the best value fizzy on the Irish market bar none.

chrismon

I was talking to a taxi driver during the week,we were talkin about this subject and he told me alot their calls(as a company) were going to offliscenses,buying a load of drink and delivering it to peoples houses.Offliscenses must be doing well these days.....

spongebob

A Letterkenny publican has joined in the consensus that the pint should be no more than €3 , twas in todays Independent . Once the rest of them see that the place is rocking they will join in.

About half to two thirds of ALL publicans will drop the price of the pint and the small one AFTER the budget anyway. Thats whether they get a concession from the government or not .

The drinking-in culture is starting to ingrain itself , the pubs are too empty too often nowadays and the pubs are losing critical mass as their client base starts to assume that

"There will be nobody there so why bother going down "

where it was once ..... in recent memory

"Everyone will be there, must go down "

Irish pubs only remain at the centre of their communities if the community go there. The community has been priced out of it by the publicans and lulled into the home drinking habit by Lidl and Aldi .

M

simonm2

lafortezza wrote:

....bars could probably afford to sell a pint of Dutch for about €2 and still make reasonable profit, and they'd be packed....

FREE BUSINESS IDEA!!!!!!

Often thought about the following. How about a pub where seating is provided as normal - maybe even a bar and stools too but where all the drinks were supplied from vending machines. You'd pay a deposit on the way in for a glass of your choice (returnable when you leave) and then just put coins (tokens, code numbers etc might be a better way) in the the machines for the tipple you wanted. An almost staffless pub with Aldi/Lidl type prices. The premium (5%) beers in lidl/aldi (sometimes includes Beamish) are about 2.35 a litre - their cheapies quite a bit less. That's maybe 1.60 a pint incl their margin - and probably under a Euro a pint for their cheaper ones. Set-up properly a self-service put could probably have a wide range of beers at 1.50 to 2.00 a pint and make money. Soft drinks should be do-able for well under half that.


Publicans have a love hate relationship with soft drinks. Love them because the profit margins are astronomical: hate them because they are not addictive in the way alcohol is. The guy/gal who's drunk seven pints of Guinness will always have room for one more - I doubt anyone who's done seven pints of Fanta/Coke/Sprite could face another one - ever - not in this lifetime anyway.

Anyway - so maybe beer prices will come down - but don't hold your breath on other prices.

The whole deal with getting a reduction in excise duties is a face saving job - it really hasn't a lot to do with the economics. If the publican drops 50 cents off a pint/short without some plausible story then some customers are going to get to thinking - hey, he can sell me the pint 20% cheaper this year than last even though inflation has gone up --- does that mean he's been ripping me off for years?? Think think think ......

parsi

simonm2 wrote:

the 9.99 Cremant de Jura from Aldi which is the best value fizzy on the Irish market bar none.

Still a ripoff though ! Beautiful Cremant is around 4-4.50 in the Hypermarkets in France - we always bring back a few boxes...

simonm2

parsi wrote:

Still a ripoff though ! Beautiful Cremant is around 4-4.50 in the Hypermarkets in France - we always bring back a few boxes...

Agree entirely - just it's "good value" compared to the rest of the ripoffs. Dunnes used to have a fizzy about the same price which was good too: "Great Western" or something to that effect - may have been an OEM of Jacob's Creek but I'm not sure.

When I'm in Spain my fav is "Anna de Cordoniu" about 6 euros now - way way better than the Freixnet black label which is about the same.

seamus

simonm2 wrote:

Often thought about the following. How about a pub where seating is provided as normal - maybe even a bar and stools too but where all the drinks were supplied from vending machines. You'd pay a deposit on the way in for a glass of your choice (returnable when you leave) and then just put coins (tokens, code numbers etc might be a better way) in the the machines for the tipple you wanted. An almost staffless pub with Aldi/Lidl type prices. The premium (5%) beers in lidl/aldi (sometimes includes Beamish) are about 2.35 a litre - their cheapies quite a bit less. That's maybe 1.60 a pint incl their margin - and probably under a Euro a pint for their cheaper ones. Set-up properly a self-service put could probably have a wide range of beers at 1.50 to 2.00 a pint and make money. Soft drinks should be do-able for well under half that.

It's a good idea, and could do well, but there's nothing like a freshly-pulled pint. If you wanted to amend that idea slightly, you could try the vending machine approach with taps - You stick in your euro, then you get a pint's worth to pour from the tap into the glass yourself. Whether the maintenance costs of allowing the public to use the taps would be less than the cost of hriring barmen though is the kicker.

simonm2

seamus wrote:

... you could try the vending machine approach with taps - You stick in your euro, then you get a pint's worth to pour from the tap ...

Definitely - in fact that's more or less what I had in mind - draught means less bottle handling afterwards - although that could be automated too. (Some) supermarkets on the continent have have automated systems for handling bottle/can returns for more than a decade.

The Guinness taps in the UK have been press button for donkey's years - would be very easy to make them coin/token/code operated.

Maybe we could take a leaf from the Portuguese book too. Some discos there are in industrial estates out side the city - lower rents now parking problems. So how about a warehouse size self service pub in an industrial estate -any takers? Throw in a bus service if its big enough.

mcaul

Guinness taps in UK have all being changed to the same system as in Dublin - that's why Guinness in the UK doesn't taste any way as bad as it used to. (still not the same as home though!)

Re pricing - Pubs need to make a profit on every drink and have each "seat" making him/her money. I have no problem with the price of pints and Dublin is far cheaper than most similar pubs in london / manchester etc etc and far far cheaper than pubs in France, Denmark Finland etc.

What I see is the rip off is the spirit + mixer. - The pub has allowed for a "seat" profit on the sprit alone yet will still charge a full profit on the mixer - thus a double profit on one drink. The same applies to a "pint" of coke. The main profit is built into someone having one coke but when they want a doubnle coke it is a double profit.

One pub doing well is the Central Bar in O'Connell street. 4.50 for vodka and sprite. - That's good value.

My idea to publicans is to charge a nominal one euro for a mixer when mixed with a sprit and just a one euro addition if someone wants a double coke! - Keeps the single cokes guys paying for the "seat" and keeps us mixer guys happier with alower price.

So simple

Eurorunner

So how about a warehouse size self service pub in an industrial estate -any takers?

Yep, thats how the continentals do it. Havnt really seen it done with pubs as such, but works well with clubs.

They earmark an old industrial zone for such a development. Provide large carparks, public transport, etc. and a few different 'clubs' all within the one complex. Its away from residential areas - so party-goers dont annoy anyone else.

Works well.

chump

Was at one in france a few weeks ago... unreal places... everyone drives to them (and back!), the venue has enough parking for thousands, and it was completely full ... never seen anything in its ilk

goes on until the morning
people arrive at 1 or 2...

Ronan|Raven

Here in Roscommon in the wee village I live in one publican has dropped his prices following his refurbishment to 3euros per pint (guinness , budwater etc) and shorts to 2:80. Another pub has followed suit from what I have heard. Will have to pay them a visit

Danno

How about this:

Last year a guy rents a pub in a small rural village, pop 600. He is able to hire a full time bar man, and a part-time one too. He is also able to put on live music one night a weekend and a dj on the other weekend night. The pub is not a big one, say 100 folks and theres a crowd.

This guy is able to:

pay rent on the pub
pay full time wages to 1 staff
pay part time wages to 1 staff
pay a dj
pay a band
pay himself

all on the profits of a pub. Imagine what the family-run pubs are making?
The average prices where I live are as follows:

Guinness/Ale 3.30 pint
Carlsberg 3.60 pint
Cider 3.60 pint
Shorts 3.20 pint
Mineral 2.00 for 250ml
Smirnoff ice 4.20 for bottle

THESE ARE RIP-OFF PRICES. Id hate to pay what you *poor fools* pay in Dublin.

SickCert

Last weekend had friends around! yes i have friends.

Bottle of vodka €17
8 cans €16 approx
Tonic and mixers €5
2bottles wine €12(tesco)

4 people drank all night for €50 - €12.50 each!!

Why do we bother going out?

thereallyreal

Think we are going to have to change our habits and start having more house parties......

SickCert

And i still threw my friends out to the back garden for a smoke - just for that true pub feeling !!!!!!

Capt'n Midnight

Why don't they drop the price on soft drinks ???

A rock-shandy or any drink made from two bottles in a pint glass is less than a pint even when you include the ice, the cost in a supermarket is a lot less and yet it costs more than a pint.

It would litterly drive you to drink.

seamus

Capt'n Midnight wrote:

Why don't they drop the price on soft drinks ???

Cos they make a killing on them. You see, publicans still don't get the concept of "drop the price - increase revenue". A vodka and coke in most pubs will set you back around €4.50 for the vodka, and €2-€2.50 for the coke. A 250ml bottle of coke (some pubs actually now stock 200ml bottles, but continue to charge the same price :rolleyes: ) sets that publican back 50c. That's a 400% markup.

As these prices increased, people began to move away from mixers, to pints or alcopops. Accordingly, publicans further increased the price of soft drinks to try maintain their profit on them, and to competely assrape teetotallers. Basic supply-demand economics is lost on publicans.