Welcome to the end of the week and another edition of Happy Hour! Just sit back, relax, and enjoy your end of the week roundup of all things interesting in the land of money.
The Holiday Premium
While you’re lavishing your partner with cards, candy, flowers, and dinner today, understand you could have gotten it all for less tomorrow. Ah…the price of love.
This is nothing new. Holidays are big business. And businesses take advantage of our willingness to conform.
To be fair, Valentine’s Day brings with it certain expectations that nobody wants to come up short on. Still, its smart business. Higher prices are a logical response when demand spikes.
Valentine’s Day is a big spike. Don’t believe me, check the price of roses next week. Bars and restaurants do it too. I’ve seen 20 – 40% price hikes on menus. Call it the “love” premium. And it just got a price.
This isn’t limited to Valentine’s Day either. New Years Eve, St. Patrick’s Day, and Halloween all come to mind. I’ve personally raised drink prices 33% on St. Patty’s Day. The same beer was pouring from the tap every other day that year. Yet, because that day had its own special name certain things, like beer, had a higher value.
As for Valentine’s Day, only the better restaurants have this problem. Reservations sell out faster than a Bieber concert. There’s even been a rise of Anti-Valentine’s Day parties catering to singles, the overlooked demographic of the day. Now that’s business at it’s best – a party against the holiday with premium prices. Even when you don’t try to celebrate it, it still costs you.