Southwick_Seagull
Well-known member
- Oct 8, 2008
- 2,035
My guess is that the elasticity is such that a 10 per cent increase in price will lead to something like a 4 per cent drop in sales.
In other words ... if 1,000 pints are sold at £3.60, this will bring in £3,600. If the price goes up to £4.00 (an 11.1 per cent increase), sales will fall by 4.44 per cent, to 955 pints, bringing in £3,820 (an increase of £282).
From the point of view of the seller, the problems only start to arise if someone else can break into the market, selling beer at less than £4.00. As long as the Club can maintain their monopoly, they're OK. But if folk decide to buy their pints somewhere else, there could be a crisis.
Very similar to a conversation I had on Saturday. Brighton have the advantage when it comes to charging high prices for food and drink that the location of The Amex means they have no real competition. It's not like it's a city centre stadium where there are 4 Wetherspoons within walking distance selling £2.80 pints.