Manila

If your going to lose money you don't open up. My point is that you don't raise prices because you have less customers. Raising prices usually leads to guess what? Even less customers. Obviously there's is some optimal price that maximizes your profit. Basic economics. Based on the post I replied to I'm going to assume he just lost a customer.

I'm not thankful for coffee shops staying open at higher prices.

You can be thankful all you want.

I will be thankful when a coffee shop opens up and gives me coffee for free. They will have all my thanks.

Until then I will go to a coffee shop and see the prices and if it's too expensive I will leave. It's a business transaction. These business aren't my friends.


[QUOTE=Dg8787;2462055]A few places here in USA have raised their prices too. It is to try and cover the increased cost of a limited and restricted operation. No one has really complained about it. I for one understand it.

Be happy some are still opening up. Predictions are half of the businesses will be closing up or bankrupting soon.

Perhaps some opportunistic western can pick up a place cheap and charge 30% less?[/QUOTE]

[QUOTE=Kazeu;2462091]If your going to lose money you don't open up. My point is that you don't raise prices because you have less customers. Raising prices usually leads to guess what? Even less customers. Obviously there's is some optimal price that maximizes your profit. Basic economics. Based on the post I replied to I'm going to assume he just lost a customer.

I'm not thankful for coffee shops staying open at higher prices.

You can be thankful all you want.

I will be thankful when a coffee shop opens up and gives me coffee for free. They will have all my thanks.

Until then I will go to a coffee shop and see the prices and if it's too expensive I will leave. It's a business transaction. These business aren't my friends.[/QUOTE]I will defer to your vast business education and experience.

Meanwhile I will be thankful and enjoying my morning coffee even at 30% more.

[QUOTE=PedroMorales;2462021]Spare a thought for her family as they are truly fcked. There are very hard times ahead for those for whom money is an issue.[/QUOTE]Nothing to do with the shop assistant Pedro. He is doing what management wants (in this case, it's Jollibee who now own Coffee Bean & Tea Leaf.).

You and some others missed the point I was making about the standard Asian business model.

If less people visit your business, you increase the prices to attract them back. Super logic.

[QUOTE=RedKilt;2462213]Nothing to do with the shop assistant Pedro. He is doing what management wants (in this case, it's Jollibee who now own Coffee Bean & Tea Leaf.).

You and some others missed the point I was making about the standard Asian business model.

If less people visit your business, you increase the prices to attract them back. Super logic.[/QUOTE]SOP in Phils. Just look at the Burgos bars in Makati. Fewer dudes over the years has resulted in higher drink prices and higher EWR prices, reducing the number of drinks sold and EWR's, resulting in even fewer dudes walking thru the doors.

[QUOTE=WestCoast1;2462258]SOP in Phils. Just look at the Burgos bars in Makati. Fewer dudes over the years has resulted in higher drink prices and higher EWR prices, reducing the number of drinks sold and EWR's, resulting in even fewer dudes walking thru the doors.[/QUOTE]Which begs the question: is there something else going on, some other revenue stream that these bars are tapped into, ie is the bar's main business to sell drinks and barfine girls OR to act as a front for these other operations? I don't think the bar owners and managers are stupid, so there most likely must be an explanation for their otherwise irrational economic behavior. Or not. LOL.

[QUOTE=NattyBumpo;2462280]Which begs the question: is there something else going on, some other revenue stream that these bars are tapped into, ie is the bar's main business to sell drinks and barfine girls OR to act as a front for these other operations? I don't think the bar owners and managers are stupid, so there most likely must be an explanation for their otherwise irrational economic behavior. Or not. LOL.[/QUOTE]NB: Clear your inbox.

[QUOTE=WestCoast1;2462299]NB: Clear your inbox.[/QUOTE]Box is cleared. It is always good to hear from you.

[QUOTE=Dg8787;2462098]I will defer to your vast business education and experience.

Meanwhile I will be thankful and enjoying my morning coffee even at 30% more.[/QUOTE]I am in Cebu province and a coffee addict.

I usually buy whole beans, grind them myself, and brew in a French press.

However I ran out of beans in Apr, I cannot find real coffee here either ground or beans so am stuck with instant.

The local mall sells coffee grinders but when I asked in the grocery section about brewed coffee got a blank look before they answered not available po.

I would kill for some real coffee, I have 6 lbs in a DHL stuck for a few days to clear customs, but once it is delivered in Manila, it will be another two weeks before LBC gets it to me.

[QUOTE=RedKilt;2462213]Nothing to do with the shop assistant Pedro. He is doing what management wants (in this case, it's Jollibee who now own Coffee Bean & Tea Leaf.).

You and some others missed the point I was making about the standard Asian business model.

If less people visit your business, you increase the prices to attract them back. Super logic.[/QUOTE]Prices in a free market are at the intersection between supply and demand curves.

Cost has nothing to do with price except as it relates to the supply curve.

The lockdowns and social distancing has resulted in both a supply side and a demand side shock.

On the supply side, lower seating capacity and employment restrictions has shifted the supply curve to the right, many places will be unable to operate at a profit and will close.

On the demand side, there is a pent up demand, people have not gotten out to get their sit down coffees, they are willing to pay more.

The net result will be increased prices as the market adapts to the changes.

Of course the average pino does not think this through but thinks need revenue increase prices. It works, people stay and pay the higher price.

I'm no economist, but I would wager that if you only have 1 customer in your cafe, you're probably priced too high. A good strategy to find the right maximal pricing might be to start from something cheap so that your shop is at capacity, then start raising prices until you start losing a few customers.

[QUOTE=KabulGuy;2462438]Prices in a free market are at the intersection between supply and demand curves.

Cost has nothing to do with price except as it relates to the supply curve.

The lockdowns and social distancing has resulted in both a supply side and a demand side shock.

On the supply side, lower seating capacity and employment restrictions has shifted the supply curve to the right, many places will be unable to operate at a profit and will close.

On the demand side, there is a pent up demand, people have not gotten out to get their sit down coffees, they are willing to pay more.

The net result will be increased prices as the market adapts to the changes.

Of course the average pino does not think this through but thinks need revenue increase prices. It works, people stay and pay the higher price.[/QUOTE]

[QUOTE=KabulGuy;2462438]Prices in a free market are at the intersection between supply and demand curves.

Cost has nothing to do with price except as it relates to the supply curve.

The lockdowns and social distancing has resulted in both a supply side and a demand side shock.

On the supply side, lower seating capacity and employment restrictions has shifted the supply curve to the right, many places will be unable to operate at a profit and will close.

On the demand side, there is a pent up demand, people have not gotten out to get their sit down coffees, they are willing to pay more.

The net result will be increased prices as the market adapts to the changes.

Of course the average pino does not think this through but thinks need revenue increase prices. It works, people stay and pay the higher price.[/QUOTE]Huh? In many places people have not been working and have far less disposable income. There is not pent-up demand. We are at risk of deflation.

[QUOTE=KabulGuy;2462438]
On the demand side, there is a pent up demand, people have not gotten out to get their sit down coffees, they are willing to pay more.
[/QUOTE]Some might be.

Others, like me, will forego the exorbitant price in a mall coffee shop and make my own at home using my fancy Breville coffee machine that grinds enough for each shot on demand.

The only reason I stop off for a coffee in the mall is for the social aspect. To meet a couple of mates now and again and watch the world go by. No need for that right now.

Incidentally, I just walked past the coffee shop referred to in my earlier post. Totally empty at 1000 h. As I walked past again on my way home, it was still empty at 1115 h.

Any other time it would be a bustling center of activity. Crazy strategy to apply such price rises.

[QUOTE=RedKilt;2462481]Some might be.

Others, like me, will forego the exorbitant price in a mall coffee shop and make my own at home using my fancy Breville coffee machine that grinds enough for each shot on demand.

The only reason I stop off for a coffee in the mall is for the social aspect. To meet a couple of mates now and again and watch the world go by. No need for that right now.

Incidentally, I just walked past the coffee shop referred to in my earlier post. Totally empty at 1000 h. As I walked past again on my way home, it was still empty at 1115 h.

Any other time it would be a bustling center of activity. Crazy strategy to apply such price rises.[/QUOTE]For whatever it's worth, things appear to be much the same in Davao. I do not typically frequent coffee shops since, like RK, I can make better coffee grinding my own beans at home. However, the shops that I do pass by, and there are lots of them, are either typically empty or quite sparsely populated. I read an article today by some senior government official (I forget which one), saying that quarantines will remain in effect until at least October 1. If true, this crisis will be the death knell for several restaurants including, perhaps, our own.

GE.

[QUOTE=RedKilt;2462481]Some might be.

Any other time it would be a bustling center of activity. Crazy strategy to apply such price rises.[/QUOTE]I believe the strategy would be to maintain the headline item ie coffee at P95 and increase the prices on the add-ONS. Additionally offer a coffee deal at P250 which includes muffin and unlimited coffee refills. People wll bu more food with each refill and hey never drink as much as they think.

I like the "chillis" margarita deal. Unlimted refills for P295 I recall.

[QUOTE=PilotPaul;2462503],,,,

I like the "chillis" margarita deal. Unlimted refills for P295 I recall.[/QUOTE]You never see a bottomless cup of coffee deal but the all you can during happy hour deals are common.