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Essay text:
There is a very high elasticity of demand, meaning as prices go up, consumers will generally find somewhere else to go and there are plenty of places to do that. The buyer switching costs associated with this issue is generally not monetary but more mental. For example lets say our club must raise its drink prices and entry fee. This may cause one of our customers to become disgruntled and want to go somewhere else. However, if our venue is popular enough we will have a huge and loyal crowd so if this customer wants to go someplace else because of the price issue, his switching cost would be the effort of telling all of his friends who frequent our bar to go somewhere else, which may not be easy as price increases effect all consumers differently...
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