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I can't really comment on this but I do go out a lot in the Recoleta and microcentro area.
Every time I walk around I see more night clubs begin opened and if I talk to the guys at the door of for example Ladies in Microcentro they tell me all the business is gone.
If I compare this to 2005 there were few night clubs and I would think they did great. The big names bars probally still make good business but I doubt the new bars or with bad location are doing ok.
What do you guys think?
I don't venture into the city too often, but out here in the "sticks" (as my son calls it) it seems business has dropped off. My favorite places in San Miguel and Jose C Pas have raised their prices to the point where the average Argentine worker cannot afford to go very often. (its still cheaper then in the city!) One club, Imagina, used to have 200 or more girls on a Friday night. Plus 500 or more horn dogs coming in to sample the girls. Now its only 100 girls and maybe 150 guys. Prices much higher but the overall earnings for the girls way down. But for me, it works out as there are many more girls willing to do a 12 hour shift at my place for 100pesos. Basically the greedy owners have fucked themselves! I understand there is inflation and things cost more, but to have a beer go from 8 p to 12 p? (a beer they only pay 2.25 p for!) A putas trago went from 20p to 30 p? Give me a break! A ficha for pool went from 2 p to 4 p! Now I only go to the clubs when I want to recruit some new talent!
[QUOTE=Gandolf50] Basicly the greedy owners have fucked themselves![/QUOTE]I've seen this happen before many times.
I can buy a litre bottle of Blender's whisky at my local supermarket for $15 but a shot costs between $20 and $40 at the clubs. How much do they want to earn? The owners of the clubs when they see their profit going down just put the prices up. Of course this is stupid because in the long run they are killing the proverbial goose.
The girls also lie to each other pushing their prices up. If one girl gets $200 for an hour, what other girl is going to accept less. It's like they are accepting that the first one is prettier and even if one goes out for $50 she'll tell everyone she got $300. They'll lie their life away till they end up giving blow jobs in the Constitucion Train station toilets for five pesos. (Yes, I have seen at least one that was a queen on Suipacha some years back ending up like that)
Pipper's, one of the older clubs has just closed due to this greediness. The rent went up too high because the owner of the property thought it was worth a fortune, the business had been going down for years because the owners of the business thought he could charge the drinks at the same price as the place next door that has a better looking club, shows all night and much prettier girls.
Andres (among other people) has written some wonderful posts about the strange Argentine approach to economics. When demand drops, raise your prices! That way, you'll make the same money. Or maybe even more!
[QUOTE=Monger514]Andres (among other people) has written some wonderful posts about the strange Argentine approach to economics. When demand drops, raise your prices! That way, you'll make the same money. Or maybe even more![/QUOTE]I don't really know if this is the case for (foreign) mongers but in the regular bars they increase prices to maximize the profits.
Most Argentines go out with just 20-30 peso. If you increase the price they will buy only one beer instead of 2 or 3.
Example.
1 beer for 15 peso.
3 beers for 5 peso.
It's easy to see that you make more money in the first case.
The first world reality that people spend more if they enjoy themselves does not apply for Argentina.
P. S. I think Ladies on Reconquista will close it's doors as well soon. They won't even open up anymore on many nights.