tag:blogger.com,1999:blog-7695054139670388214.post9080305328980270366..comments2024-03-25T02:38:06.683-07:00Comments on Beeronomics: The Oregon Brewers FestivalPatrick Emersonhttp://www.blogger.com/profile/17242234148546323374noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7695054139670388214.post-69210291716134214512010-07-25T11:42:07.756-07:002010-07-25T11:42:07.756-07:00That is true it all depends on the price elasticit...That is true it all depends on the price elasticity of demand (along with the cost of extra space). It is quite possible that lower pricing is more profitable. My working assumption is a fairly inelastic demand.<br /><br /> I will say that, regardless, Thursday was a delight. Perfect weather and lines that never got too long.Patrick Emersonhttps://www.blogger.com/profile/17242234148546323374noreply@blogger.comtag:blogger.com,1999:blog-7695054139670388214.post-59195735665556729082010-07-24T08:31:42.926-07:002010-07-24T08:31:42.926-07:00Pricing at beer festivals?
Well, they may also ne...Pricing at beer festivals?<br /><br />Well, they may also need to ensure large crowds so that more breweries will commit to the event, which will bring even bigger crowd and so keep the pricing low. A lower priced beer festival with many attendees and breweries may be more profitable that a smaller one with higher addmission and fewer breweries. And since the cost to add one more person to a beer festival is negligible, a low pricing strategy may make sense to ensure many people will attend, rather than just a few higher priced attendees. Maybe the math works out that lower pricing is more profitable.<br /><br />Some beer festivals effectively price discriminate by charging extra for early VIP sessions, where special releases are poured and attendees are given more access to the brewers that the regualr attendees.<br /><br />And finally, you'll notice beer dinners typically have a wide range of pricing, which I believe is due to the fact that the seating at a bar are restaurant where these events take place is a lot more fixed than an outdoor beer festival, and so the pricing is set to limit the number of people to the amount of available seating.Derrick Petermanhttps://www.blogger.com/profile/03965272125362046327noreply@blogger.com