how much is a good price to start out with an average beer price on the opening of my club? and should i.....?

Question

should i raise the price after a week or should i start out high then go lower? and how much should i pay my employees? would i need a manager?

2.50 being the average around my city

$2.50 beer being the average

Answer 1

Pricing:
You need to figure out what your break-even revenues are i.e. how many drinks should you sell to cover all your expenses.
From the break even revenues then, figure out how many units you need to move i.e. how many of X units do I have to sell to make the break even revenues of $Y dollars.

The break even price per unit you come up with will be the bottom end of your pricing strategy. Then do a little leg work and see what your local competitors are selling per unti and under cut them.

You will then be able advertise your grand open as having the cheapest drinks within a xx mile radius. That should draw a lot of people to the opening and hopefully you can make up on volume moved.

If you use break even, you will be able to hold that low price for longer provided your costs don't change significantly. As they change, then increase price either to another promotional pricing based on the same reasoning or to match competition or to the recommended retail price.

Employees:
You should pay at/above minimum wage for servers. A manager will be apid as negotiated btw the 2 of you. If this is your first restaurant business, you can work with a manager to help you understand the business esp. if you have no prior industry experience.

Answer 2

Would you need a manager? What are you going to do at this club--just deposit the receipts? You are talking of a small place, manage it yourself.

As for what you should charge, that reminds me of a meeting I was asked to attend in relation to a college class of, um, several, years ago. A man from the Federal Reserve was telling bankers of all the steps and processes in establishing banking service practices. Then he finished with, "And the last step is the reality step--call your competition and see what they charge." It might be good to visit your competitors and see what you are up against. You might find out what they charge for beer while you are at it.

Answer 3

Kinda depends where you open it doesnt it?