A bar in Southern California has adopted a flexible pricing process for its tequila, making an average Saturday night out more like a day on the trading floor. The Blind Burro changes up the pricing for its selection of tequila based on what people are ordering that night, the Associated Press reported.
The bar uses software from a company called The Drink Exchange to continuously adjust the prices of its tequilas (more than 24 varieties) as customers make purchases. This policy of dynamic pricing — commonly seen for commodities such as sports events, airline tickets, and Uber rides — accommodates a fluctuating demand for certain tequilas. It's also being used in the restaurant industry for reservations; Tock is the most notable software that prices reservations based on daily and hourly demand.
Bars are able to use this technology to link drink prices so one drink will decrease in price when another increases. Customers can even play a game with the numbers and score a lower-priced drink if they focus long enough in order to figure out when a drink may typically dip in price, as Wired noted.
At The Blind Burro, the tequilas and prices are displayed on TV screens on the walls, and customers can watch the prices jump from hour to hour. This dynamic pricing technology is currently used in more than 20 establishments across the country.