Tags: Bar | stock | exchange | beer

NYC Bar Puts Market Theory to Work in Pricing Beer

By    |   Monday, 27 Feb 2012 07:27 AM

New York Beer Company, a Manhattan bar that is set to open next week, hasn't just dressed itself up to look like the New York Stock Exchange.

It also is using a trading system similar to that of stock exchanges – no word yet whether the bartenders will be Ivy League-trained rocket scientists.

Beer prices will fluctuate as if the brews are being traded on a financial exchange, CNBC reports. So when many people order the same beer, the rise in demand will send the brew’s price higher. And when demand slides for a beer, its price will drop.

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A streaming ticker will show beer prices, with changes in real time. The way it works is that bartenders and waiters enter beer orders into a computerized register. And the computer automatically adjusts the beer prices.

So you can bet that rocket scientists were indeed involved somewhere along the line, though more likely as computer programmers than as bartenders.

“The software is pretty complex,” Brian Connell, co-owner of the New York Beer Exchange tells CNBC. “You enter thresholds and parameters based on the number of sales.” The system will account for the time of day and day of the week, he says.

Perhaps it will be rocket scientists who are the bar’s biggest customers. They might have the skills to figure a trading program that would enable them to drink their beer for free.

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2012-27-27
Monday, 27 Feb 2012 07:27 AM
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