People were warned, when they made the decision to open a competing night, on the same day of the week. That there are some things they needed to think about, regarding the economics of limited sized markets.
First off; diversity vs supply and demand. (Thanks to Tom for the basis of this wonderful little write up I’ve expanded on)
Everyone knows the rules of supply and demand.
Company A sells a product {supply}, soon demand for that product grows sometimes beyond Company A's supply, so price rises to accommodate the rise in demand. Hopefully stifling demand or making enough of a profit to get supply to match demand.
Sometimes when demand is extremely high and company A can't make enough of the product to match the demand, company B will come in and undercut company A. Hopefully starting to level out demand and supply.
Now that’s all and good in a market that can expand, however, in a niche market supply and demand do work differently, where demand MEETS supply and there is no room for expansion. Then most likely company B. won't be able to get a foot hold in the market without some kind of incentive for people to switch from company A to company B. now since we are dealing in a peer driven environment a large enough community needs to shift in order to be considered a foot hold. say in this market of ~200 people a shift of ~50 close knit locals to form your core, would be needed to even make a dent.
In all honestly there were three possible outcomes, I could see
1. Business A stays, bumps over the speed bump, continuing in growth as Business B fails,
2. Both stay and growth dilutes, as the market slowly expands to accommodate two businesses.
3. Business B stays becomes wildly successful and Business A fails.
What really happened?
Of the three, the first two seemed far more likely. An established company tends to win out over a new comer. In any case, they didn’t listen and forged forward with their idea . . . which only leads me to exclaim “BRILLIANCE” in a bad Irish brogue while shaking my head. Of course there was a 4th option, I had discounted or overlooked in my naivety and confidence in the night, and not even bothered mentioning which has come to pass
The introduction of this foreign element affected the attendance and bar sales enough, and this lull took so long to recover from, that when the owner of the venue was approached by someone with a set of “books” (how well cooked I can only guess), showing that they could bring in at a minimum, 8 times the weekly attendance with a bar tab to match. . . With the owner, currently looking at 3 nights, which at least when looking at the faces at the night, seem fairly similar. And looking at an overall 20+% drop in bar sales, He decided he needed to cut or consolidate down to just two nights, and Vector didn’t make the cut.
What are we going to do?
9/27 will be the last Vector Industrial Night at Goodtimes, and unless we have located a new Venue will be on hold until we do. We are currently looking for new a venues, in Las Vegas, one that will preferably allow us to put on live shows and bring you outstanding entertainment from around the world.
We’ll keep you posted here with what we are able to come up with. . .
