Subscribe to our RSS FeedBlog

Undercutting Drink Prices March 21st, 2010 Posted by Hunter Wilson
Related Image
- ← Previous
- Photo 1 of 1
- Next →
/media/c125931/608_245_med.jpg

Related Image
One of the worst things I have seen in this industry over the years is the practice of undercutting drink prices. This is where local bars compete to have the cheapest drinks in town on a particular night. Sounds like an understandable business practice, right?
This is not always the case. In markets like Greenville, NC, Myrtle Beach, and some areas of Columbia, this practice is crippling businesses. Here is why...

Let me take Greenville, NC as an example. This is a small nightlife scene with about 10-15 spots total, all of which compete primarily over the college student business.

One bar will undercut another bar's special in order to gain the upper hand on that particular night's promotion. It starts there at a reasonable cut, maybe .50 cents. Eventually, and what has happened in Greenville, is the undercutting has gotten dramatic with bars featuring penny drafts or even penny liquor nights! Let me go on the record by saying no bar can make decent profit, even with a door charge, when they give their product away. Now, on any given night of the week, there is a bar in Greenville with some crazy almost free drink prices. The customer base has grown accustomed to this and that is now what they expect.

Major organized changes will have to be made to help these businesses stay afloat.

Similar issues I have seen in other cities or smaller sectors of town. Myrtle Beach seems to have unusually low drink prices compared to other cities around the Carolinas. I would have expected, for a tourist market like the Grand Strand, to have increased prices.

You will more than likely see similar issues happening in sectors of towns that are closely associated with a college; 5-Points in Columbia, Boone, etc.

I have heard of some areas creating unions among the bar owners in order to reign in the problems and issues that face their industry. These unions in my opinion are great.

Coopetition!
- Filed Under:
- Thoughts from Hunter
- Post a Comment
- 8 Comments
Hunter Wilson
Owner, CarolinaNightlife.com1 Posts
Charles is the Executive Director of Carolina Nightlife and very involved in the nightlife industry in NC and SC. He has been working with venues of all sizes, different brands and products, and countless events across NC and SC for over 8 years.