THE holidays may be over, but party-goers have plenty to cheer about - cheaper drinks. Nightspots, which have seen party-goers spending less and scaling back on their visits in recent months, are now waging a price war.
Clubs are battling for a bigger slice of the pie by offering more discounts, free drinks and even free bar snacks. But the war could get bloody as the profit margin narrows, leading to the demise of some establishments.
Mid-sized venues such as Bangkok Thai Disco at Ming Arcade are now pricing three bottles of spirits at less than $400. A bottle usually costs over $200.
Nightlife chain St James Power Station has just slashed its happy-hour beer prices at Movida Latin club, Peppermint Park and Dragonfly Mando club.
Instead of paying $10.50 (plus taxes and other charges) for a mug of Tiger Beer draught, party-goers now get another two mugs free. A jug of beer now comes with a free three-litre beer tower - equivalent to 2-1/2 jugs or up to 12 mugs - at $40.
This works out to about $3.50 for a mug and $11.40 for the jug promotion during happy hours from 6pm to 9pm. Usually, a mug is sold for $5 upwards and a jug costs $18.
Without providing figures, St James Holdings' chief executive officer Dennis Foo, 55, said it is 'expecting early happy-hour takings to double' during the promotion that will last at least three months.
These may not be the cheapest beers in town. Members of Union Square Latin club at The Amara pay $1 net for the first mug of happy-hour Tiger Beer draught and subsequently $5 (plus taxes) each.
These discounts are coming despite a hike in the cost of beer. A 30-litre barrel of Tiger Beer, which fills nearly 100 mugs, is now priced at between $250 and $260, up from $235 last year, say club owners.
St James' aggressive promotion has raised eyebrows as it signals that the big boys are prepared to have lower profit margins for larger sales volumes.
Another nightlife chain, LifeBrandz, which runs the month-old Zirca at Clarke Quay, is offering one-for-one deals for loose drinks and jugs between 9.30pm and 11.30pm, until tomorrow.
Zirca is also offering free entry - plus a complimentary drink - to those in the creative and entertainment industries on Thursdays. Bar None at Singapore Marriott Hotel now gives five free drinks, instead of two, to women from 11pm on Tuesdays - ladies' night.
And patrons who flash their identity cards in the week of their birthdays at M Hotel's J Bar enjoy one-for-one drink deals the whole night - including selected premium bottles such as Chivas Regal whisky priced from $140 each.
Its food and beverage manager Andy Chua said: 'We want to ensure that there are purse- friendly options for customers who may scale back due to budget constraints.'
Mr Frederick Dodwell, 42, entertainment director of The Arena, added: 'Traditionally, the slow period will start after Chinese New Year. Nightspots are taking a pro-active role instead of waiting to see how things pan out this month.'
Venues such as Loof at Odeon Towers are enticing bar-goers with free satay from 6pm to 9pm every Monday. And from next month, if the Straits Times Index closes lower for the day, free bar snacks will be served at 8.30pm at the newly opened OverEasy bar at One Fullerton.
But not everyone is willing to cut prices or offer freebies. The 17-year-old Zouk dance club is sticking to its current drink deals that have seen good response, said marketing manager Tracy Phillips, 30.
Mr Keef Ong, 52, who runs the 14-year-old Crazy Elephant bar at Clarke Quay, said he will not lower prices as 'cheap deals are temporary solutions'.
Many also cited the consequences of a price war: Boat Quay's waning popularity has been blamed on the vicious price wars which erupted during the 1997-1998 Asian financial crisis.
Tequila shots went for $5 a pop and a jug of beer under $15 was sold at almost every pub on the waterfront during happy hours.
Another casualty of that price war was the former clubbing precinct Mohamed Sultan Road. At the height of competition, the former Hardlanders pub sold a mug of beer at $2.50 during happy hours in the early 2000s.
Some nightspots followed suit. The move drew the crowds but the numbers dwindled when the promotions ended. Eventually, a price hike saw a drop in business and Hardlanders closed.
A price war does not augur well for smaller clubs with far fewer resources. When the former Devils Bar at Orchard Parade Hotel, then operated by St James' Mr Foo, sold three-for-one beers from 2002 to 2007, Pat's Pub at the nearby Ming Arcade suffered a 30 per cent drop in monthly sales.
Mr Adrian Houghton, 36, who runs TurnStyles Sports Bar Cafe at Holland Village and Circular Road, said: 'The big boys can afford to run cheap promotions. They get better deals from liquor suppliers as they may buy 100 beer barrels a month compared to just 30 barrels I buy. Still, smaller bars must keep their prices in check. People will go to the pub next door if the beers are cheaper.'
And the winners in this sore economy? Drinkers. Sales manager Crystal Sim, 30, said: 'I'm selective about where I drink. Besides cheap drinks, the nightspots must add value to the entertainment. It makes my outing worthwhile.'
'The big boys can afford to run cheap promotions. They get better deals from liquor suppliers...Still, smaller bars must keep their prices in check. People will go to the pub next door if the beers are cheaper.'
Mr Adrian Houghton, who runs TurnStyles Sports Bar Cafe at Holland Village and Circular Road
Discounts galore
Bangkok Thai Disco is pricing three bottles of spirits at below $400, compared to over $200 a bottle previously.
St James Power Station has slashed its happy- hour beer prices. Party-goers who fork out $10.50 (plus taxes and other charges) for a mug of Tiger Beer draught get another two mugs free. A jug now comes with a free three-litre beer tower - at $40.
Members of Union Square Latin club pay $1 net for the first mug of happy-hour Tiger Beer draught, and $5 (plus taxes) for subsequent drinks.
Zirca is giving one-for-one deals for loose drinks and jugs between 9.30pm and 11.30pm, until tomorrow.
