Peacocks PBR prices

Recently, I went to the Peacock downtown with a few friends and found there was a price increase for their signature $1 Pabst Blue Ribbion (PBR) beverage to a $1.50. A 50% mark up seemed a little ridiculous to us, especially because inflation in 2013 was 1.5% (reported by the Bureau of labor statistics BLS). This deterred the whole group of people I was with from purchasing a PBR ¬†at all. Instead a few of them got an IPA because the alcohol percentage can be as high as 7 % sometimes. This would help accomplish their ultimate goal of inducing intoxication more rapidly, but also has a higher cost of 3-5 dollars per drink. The trade-off prior to the price increase would have simply been two PBRs for a fraction of the price, as well as a bloated stomach and terrible taste lingering. Other friends decided to go with a mixed drink that left you even less full than the other two options and tended to hit more quickly because you didn’t have to waste time consuming three pints of God awful PBRs.

At first I sided with my friends, and thought that the price increase was strictly harmful to the consumer, and the supplier only gained. Knowing a PBR was still the cheapest drink on the menu, and the loyal customers of the peacock would likely accept the increase due to “inflation”. The rational consumer may recognize the disproportionate ratio and decide to purchase another drink. But then I decided it actually benefits the consumers welfare in a physical sense rather than financial. While it does discourage binge drinking a terrible drink, it also allows consumers to more willingly pay for slightly more expensive drinks with a higher alcohol percentage. Which in turn helps accomplish the goal of inducing intoxication, and also increases the willingness to pay for more drinks. More fun, but more cost. So, maybe it hurts our wallet a little more in the long run- sure. But I contend college experiences will be remembered and valued more in the future than having to pay $.50 more for a crappy beer.

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One Response to Peacocks PBR prices

  1. kobzeffr says:

    I am not 21 yet (5 more months!), but I have heard an insane amount of grumbling from my smug 21 year old friends about the price increase of the PBR’s at the Peacock. When first reading this I thought that maybe the bar increased the prices because of the mass amounts of PBR being ordered that the bar was no longer making a fair profit from the cheap cheap beer, but after doing a little research the typical 12 pack is no more than $8 making my point moot. I guess it’s just a response to the increase in demand for the most inexpensive beer at the bar, allowing the owners to get a little more bang for their buck and the consumers to maybe choose a more neglected yet tastier option.

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