1. Remove Dollar Signs ($) to Increase Spend

Studies from Cornell University show that menus without dollar signs lead to higher spending. The reason? Customers associate dollar signs with “spending money” rather than just ordering. By removing the currency symbol, you reduce the subconscious pain of paying.

🔹 Example: Instead of "$14" for a cocktail, list it as "14" or "Fourteen."

✅ Actionable Fix:

• Review your drink menus and remove all dollar signs.
• Test whether number-only pricing leads to higher tabs (it usually does).

2. The “Decoy Effect” – Guide Customers to Your Most Profitable Option

People instinctively avoid the cheapest option but also hesitate to splurge on the most expensive. The sweet spot is the middle-tier choice, which feels like a balanced decision. You can use this to drive sales to your highest-margin items by carefully structuring your pricing.

🔹 Example:

• Basic Vodka Soda – $9
• Premium Vodka Soda – $14 ✅ (Best Margin, Most Sales)
• Ultra-Premium Vodka Soda – $22

The $14 cocktail looks like a smart value choice, even if it only costs you slightly more than the basic drink to make.

✅ Actionable Fix:

• Identify your highest-margin drinks and position them between two options to guide customer choice.
• Avoid having only two pricing tiers—always give three choices to create a clear “best deal.”

3. The Right Price Format: Charm Pricing vs. Whole Numbers

The way a price looks influences how expensive it feels.

• For Bar Sales: Use .95 or .99 pricing (e.g., "$12.95") because fractional prices are processed as “a deal” in the brain.
• For Bottle Service & Premium Items: Use rounded numbers (e.g., "$500" instead of "$495") because whole numbers are associated with luxury and prestige.

🔹 Example:

• Standard Drink: $12.95 (Feels like a deal)
• VIP Package: $500 (Feels premium)

✅ Actionable Fix:

• Format bar drinks with charm pricing (e.g., $12.95) to increase sales volume.
• Use clean, whole numbers for high-end purchases (e.g., $400 bottle service) to maintain luxury appeal.

4. Bundling: Sell More Without Cutting Prices

Instead of discounting drinks (which can devalue your brand), package them into “deals” that increase perceived value while raising total spend per customer.

🔹 Example:

• ❌ Bad: "$9 Shots All Night" (Devalues product, no extra spend)
• ✅ Better: "3 Shots for $27 + Free Red Bull" (Feels like a deal, increases volume)
• ✅ Best: "Bottle Service Package: $350 for 1 Bottle + 6 Mixers + VIP Table" (Justifies price, encourages full experience)

Why it works: Customers like feeling like they’re getting “extras” without realizing they’re spending more.

✅ Actionable Fix:

• Add premium cocktail flights, “buy 2, get 1 free” shots, or exclusive bottle packages with perceived value add-ons (table, mixers, personal VIP host, VIP perks, etc.).
• Always position the bundled offer next to individual pricing to make it look like a better deal.

5. Limited-Time Pricing: Create Urgency & FOMO

People spend more when they feel like they might miss out. Urgency triggers impulse buying, making guests act now instead of hesitating.

🔹 Example:

• “Tonight Only: $10 Espresso Martinis” (Short window = impulse orders)
• “VIP Tables: Only 3 Left at This Price” (Creates urgency, driving faster table bookings.)
• “Exclusive Cocktail: Available This Weekend Only” (Drives social media buzz and first-time orders.)

Scarcity makes people justify a purchase faster, so they don’t wait and risk missing out.

✅ Actionable Fix:

• Run rotating limited-time drinks (weekend-only cocktails, holiday exclusives, limited VIP packages).
• Train servers and bartenders to promote urgency when selling—“This deal ends in an hour” works better than just listing a special.

Final Takeaway: Guide Spending, Don’t Just Set Prices

Most customers aren’t rational about pricing—they make decisions based on perception, not cost. Your pricing should subtly guide their choices toward higher spend per order without making them feel like they’re being upsold.

🔹 Action Plan for Your Venue:

✔ Remove dollar signs from menus to reduce price resistance.

✔ Use three-tier pricing to make mid-tier, high-margin items the obvious choice.

✔ Format pricing differently for bar vs. VIP service (charm pricing vs. whole numbers).

✔ Replace discounts with strategic bundles that raise total spend.

✔ Create urgency with limited-time pricing (tonight only!) to drive impulse purchases.

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