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Cathouse. New 'owner' screwed?


Yehtmae

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From latest Asiabugle...

 

"Former Cathouse owner and boss Top Cat has departed town after his sale of that business, without landlord Boss Hog's permission, and has thus created a raft of problems including accusation of financial impropriety. TC skated round the problems for a while but once the police agreed to get involved it seems the airport and a ticket out looked the best option. I am saddened because I always got on well with TC but I must admit I am not totally surprised. Let us hope he comes back and deals with his critics and does not join the ever-growing list of farang bar owners who left, never to return, one step ahead of the posse."

 

http://www.baronbonk.com/asiabugle_19tHoCToBEr2oo5.htm

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I always wondered how Cathouse could make money with its low prices. And I am not the only one: a BG I know from a bar on the other side of NEP also wondered how the bar could possibly make money when it was selling beer that cheap (BGs are smarter than we give them credit for when it comes to these sorts of things.)

 

The Cathouse business model always reminded me of the old Groucho Marx joke: we lose money on every sale, but make it up in volumne.

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I actually sat with TopCat and went over the business model with him -- we were friends, respected each other and were business junkies, so to speak. It was quite valid and he made money on the program. I will not detail it here because a) it is private (but I am sure TC would not care now and it is really just a matter of crunching numbers anyway) and B) moreso, it is too complex for a post on a message board. If interested, PM me and we can meet for a beer to detail it (this only applies to Gaddy or guys I know personally...sorry).

 

Cheers,

SD

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Gadfly1 said:

I always wondered how Cathouse could make money with its low prices. And I am not the only one: a BG I know from a bar on the other side of NEP also wondered how the bar could possibly make money when it was selling beer that cheap (BGs are smarter than we give them credit for when it comes to these sorts of things.)

 

The Cathouse business model always reminded me of the old Groucho Marx joke: we lose money on every sale, but make it up in volumne.

 

So thats where General Motors got the idea from - I wonder who put that one in their head. ::

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suadum said:

I actually sat with TopCat and went over the business model with him -- we were friends, respected each other and were business junkies, so to speak. It was quite valid and he made money on the program. I will not detail it here because a) it is private (but I am sure TC would not care now and it is really just a matter of crunching numbers anyway) and B) moreso, it is too complex for a post on a message board. If interested, PM me and we can meet for a beer to detail it (this only applies to Gaddy or guys I know personally...sorry).

 

Cheers,

SD

 

I would expect it would make money - clearly important to understand what USP's a first floor bar has against its competition and to then create a program that brings in the punters, pushing past the other bars on the way. Odds are, only a fraction of the customers were drinking more than the cost of the promotion - as the night wears on, they buy more and more lady drinks - huge profit for the owner if he is smart in the pricing of things that are not "headline" - punter thinks he is getting a good deal, bar is happy and making money and people attract people. Would be interesting to know how many spirits he sold later into the evening when some punters could stomach no more beer but were incapable of bothering to move onto somewhere else.

 

Many would come past the bar and think, hey thats a happening place, go in and buy a drink at regular price as well as some of the happy hour bunch continuing past the happy hour when presumably drinks revert to normal pricing.

 

The bars fixed costs need to be covered - this no doubt achieved it and mostly before other bars were even open for business. Good model from what I have seen of it and I cannot think of another example where someone has created something that people remember a) so fondly - i.e that TC is a good bloke, not ripping us off B) creates a lasting and positive impression for the punter, to the extent that many posters on here are well aware of it, even if like me, they have never stepped foot into the bar.

 

The best marketing tactics are often the simplest ones and I'd say this hit that mark exactly.

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