fb

Fast food or slow drinks?

What price should you charge for your products?

As any professional business qualification student knows, there are several different pricing strategies that can be used when setting the price for your product.

You could for example base it on the internal factors of how much it costs you to produce (cost plus pricing) or you could use external factors such as how much a customer is willing to pay for it (perceived value pricing).

So if you owned a cafe what pricing strategy would you use?

Well over in Moscow in Russia a new cafe has taken an unusual approach to pricing.

The trendy Babochki Anticafé does not charge for food and drink. Instead the customers are charged according to the time they spend at the cafe.

Customers pay one ruble and 50 kopecks for each minute they spend at the cafe. This works out at approximately £2 per hour.

Now this got the accountant in me thinking as I must admit that I am partial to the occasional social drink and there are some very good Russian vodkas out there.

A pleasant evening spent drinking some of the top (and very expensive) Russian vodkas at £2 per hour seems like a good deal (even allowing for the charge for the time when I fall asleep in the cafe at the end of the evening)

Alas for anybody thinking of grabbing a drinking bargain the refreshments are limited to tea, coffee and deserts.

Still, it’s certainly a novel approach to pricing food and drink and we wish the Anticafé well.

Share this entry

Recent articles

View All Articles
Insider Trading: A Cautionary Tale from the Oil Industry
Feb 29, 2024
Title
Insider Trading: A Cautionary Tale from the Oil Industry
Excerpt

In the complex world of finance, insider trading remains one of the most controversial and closely watched issues. […]

Lessons from Kraft Heinz’s Sales Decline
Feb 20, 2024
Title
Lessons from Kraft Heinz’s Sales Decline
Excerpt

In the fast-paced world of business, staying ahead of market trends and consumer preferences is paramount. The recent […]

The strategic rationale behind Uber’s share buyback…
Feb 15, 2024
Title
The strategic rationale behind Uber’s share buyback…
Excerpt

In the realm of corporate finance, decisions regarding share buybacks often spark curiosity and sometimes confusion among investors […]

Adapting to the Digital Age: Lessons from Sky TV
Feb 09, 2024
Title
Adapting to the Digital Age: Lessons from Sky TV
Excerpt

In the ever-evolving landscape of the entertainment industry, adaptability is key to survival. Recently, Sky TV, a prominent […]

EY’s Hybrid Work Insights
Jan 29, 2024
Title
EY’s Hybrid Work Insights
Excerpt

The world of business has seen a significant transformation in recent years, with the COVID-19 pandemic acting as […]

From blades to balance sheets…
Jan 26, 2024
Title
From blades to balance sheets…
Excerpt

Consumer behavior is constantly evolving, and businesses must adapt to these changes to stay relevant and profitable. One […]

Keep it in the family?
Jan 26, 2024
Title
Keep it in the family?
Excerpt

In the world of business, family companies often occupy a unique and intriguing position. They combine the dynamics […]

Benchmarking, football VAR and pilots…
Jan 23, 2024
Title
Benchmarking, football VAR and pilots…
Excerpt

In the ever-evolving world of business, staying ahead of the competition is essential. Companies constantly seek ways to […]