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(Abc.net.au)   Small town comes up with radical idea to save its local pub by having those who use it buy shares in it. Subby saved his local pub with the radical idea of drinking his pay cheque at the bar every single week   (abc.net.au) divider line
    More: Interesting, Investment, small community of Grong Grong, Royal Hotel, local pub, Grain grower, whole lot of shareholders, hard work, face lift  
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587 clicks; posted to Business » on 22 Jan 2022 at 10:38 AM (17 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



21 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2022-01-22 10:55:05 AM  
Maybe all pubs should be like this.
 
2022-01-22 11:13:26 AM  
live-production.wcms.abc-cdn.net.auView Full Size


I could waste hours trying to rationalize this.
 
2022-01-22 11:27:28 AM  
There was no math in that article. Anyone know how it would work?

Say I invest $X and own X% of the bar. What does my share get me in return? That percentage of any future sale -- which would seem unlikely to ever happen? I don't see the benefit. Seems it'd be better just continuing to drink there and help the pub that way.
 
2022-01-22 11:32:04 AM  
I want to see the second half of Weird Al's UHF, where the station spectrum gets auctioned off for several billion dollars, to the surprise of the shareholders in the community who thought their shares were a novelty.
 
2022-01-22 11:32:25 AM  

bostonguy: There was no math in that article. Anyone know how it would work?

Say I invest $X and own X% of the bar. What does my share get me in return? That percentage of any future sale -- which would seem unlikely to ever happen? I don't see the benefit. Seems it'd be better just continuing to drink there and help the pub that way.


Well, this might be a covid matter.

It was profitable until it had to close because of the unnamed virus of unspecified origin, and sells shares to bridge the gap. Once the lockdowns end, having shares might be a big plus.
 
2022-01-22 11:33:35 AM  

bostonguy: There was no math in that article. Anyone know how it would work?

Say I invest $X and own X% of the bar. What does my share get me in return? That percentage of any future sale -- which would seem unlikely to ever happen? I don't see the benefit. Seems it'd be better just continuing to drink there and help the pub that way.


If the trade isn't enough to keep an owner happy then having community ownership means pub doesn't shut down.  If there is no "owner" who wants $100k/year to live on, that lowers the income required to... zero.  As long as it covers costs it gets to stay open.  See also "co-op" model.  See also many private clubs.

Also means that you can go to a real part time model if the local property taxes aren't a pisser.  Open from 4-11 Tuesday through Saturday, sundays till 9?  Ok.
 
2022-01-22 11:44:14 AM  

MadHatter500: If there is no "owner" who wants $100k/year to live on, that lowers the income required to... zero.


This assumes people are willing to invest the time and effort in administering the business.

Because even "we'll just hire a manager" includes some effort on behalf of the owners.
 
2022-01-22 11:45:36 AM  

MadHatter500: bostonguy: There was no math in that article. Anyone know how it would work?

Say I invest $X and own X% of the bar. What does my share get me in return? That percentage of any future sale -- which would seem unlikely to ever happen? I don't see the benefit. Seems it'd be better just continuing to drink there and help the pub that way.

If the trade isn't enough to keep an owner happy then having community ownership means pub doesn't shut down.  If there is no "owner" who wants $100k/year to live on, that lowers the income required to... zero.  As long as it covers costs it gets to stay open.  See also "co-op" model.  See also many private clubs.

Also means that you can go to a real part time model if the local property taxes aren't a pisser.  Open from 4-11 Tuesday through Saturday, sundays till 9?  Ok.


This assumes (maybe rightfully so) that the owner did nothing but leach money off of their ownership. It's far far more common for the owner to be an active worker at the facility meaning their cost is actually part of the bars labor, although they would assumingely be paid at least a managers wage if not higher than that, but I also highly doubt the bar was failing solely because the owner was sucking it dry and their salary was the sole expense throwing them into the red, especially if they were contributing no labor or effort.

A far far far more likely scenario is the funds raised were used to pay off loans, debts and mortgages owed by the bar. Interest charges, especially on items not typically financeable under extremely low mortgage rates can get quite high and I assume they probably don't even get the best rates on mortgages for bars since they are typically considered a higher risk than say a factory or other facility that's not likely to have their sales ebb and flow based on external factors and such.

It's not always just about a freeloading rich guy.
 
2022-01-22 11:56:35 AM  

bostonguy: There was no math in that article. Anyone know how it would work?

Say I invest $X and own X% of the bar. What does my share get me in return? That percentage of any future sale -- which would seem unlikely to ever happen? I don't see the benefit. Seems it'd be better just continuing to drink there and help the pub that way.


From a technical standpoint, part ownership is just like any other investment. Even if they don't pay dividends on their earnings, It could be sold in the future to another person to recover the cost or even make money on any appreciating value of the bar.

Beyond that it pushes much needed cash into the business at a faster rate. Raising $1,000,000 in a month by selling shares can allow the bar to pay off loans and high interest debts. By comparison, even if you did heavy binge drinking every night for a month with $100 bar tabs (for yourself) they would only have about $3,000 in sales from you and of that likely $2,000 of which is cost in supplies/labor (at best) meaning you're only pushing about $1,000 into the business a month. Assuming a bunch of people did this, yes it would help, but it would still not be as quick of an impact and it would rely on patrons doing this month after month for at least a few years to have the same sort of impact.

If done right, they probably paid off all the debt and likely only need to pay for supplies and labor at this point plus a small token for taxes and maintenance. Elimination of loans takes a massive financial burden off a business, just imagine what it would be like if you didn't have to pay rent/mortgage for your personal finances.
 
2022-01-22 12:11:13 PM  
"We've drank all of the profit?"

external-content.duckduckgo.comView Full Size
 
2022-01-22 12:11:57 PM  

MadHatter500: bostonguy: There was no math in that article. Anyone know how it would work?

Say I invest $X and own X% of the bar. What does my share get me in return? That percentage of any future sale -- which would seem unlikely to ever happen? I don't see the benefit. Seems it'd be better just continuing to drink there and help the pub that way.

If the trade isn't enough to keep an owner happy then having community ownership means pub doesn't shut down.  If there is no "owner" who wants $100k/year to live on, that lowers the income required to... zero.  As long as it covers costs it gets to stay open.  See also "co-op" model.  See also many private clubs.

Also means that you can go to a real part time model if the local property taxes aren't a pisser.  Open from 4-11 Tuesday through Saturday, sundays till 9?  Ok.


Depending on how much you drink, unlimited wholesale beer prices would save you a bundle.

Before the plague when I used to travel for work, I bought an aeroline lounge membership because of the free drinks. The membership was cheaer than the sum of all my potential aeroport bar tabs put together.
 
2022-01-22 12:13:30 PM  
Depending on what else is in the town, this could be the only social hub. Lose that and you end up drinking in your garage with the other townie degenerates. Do you really want a bunch of drunk townies using your bathroom?
 
2022-01-22 12:25:29 PM  

DerAppie: MadHatter500: If there is no "owner" who wants $100k/year to live on, that lowers the income required to... zero.

This assumes people are willing to invest the time and effort in administering the business.

Because even "we'll just hire a manager" includes some effort on behalf of the owners.



I believe the point of co-ops you missed, was that everyone who does bother to get involved. They do so for reasons beyond their own immediately calculable paychecks. And so when the reason to do the work, is simply, to have the thing available that the work makes. The "cost burdens" faced to remain in operation, will be significantly lower, than when the point of the business is some owners', or inventors', demanded amount of personally pocketed cash from all work effort.

Sometimes the direct fruits of the labor, are the only real value to be had. Not that there can also be some extra private profits extracted from that too.


Go on and tell what kind of civilization it is, where citizens can only have food, shelter and water, as long as they make it profitable enough for someone else? Some else who apparently has no meaningful obligations to you, because you can be left without the basic needs of life if you do not hand over their demanded self enrichment first.
Otherwise just go be homeless, we don't actually give a shiat about basic human needs, those can all be locked away behind a pay wall where citizens get nothing but the nice idea of their own right to life.Even though they are 100% beholden to others and their personal profits to be met, if they expect to eat a meal today or not die of dehydration or exposure to the elements.So exactly how does one have the right to a life, when one has no rights to any of the necessities of that life?If you only have a thing, because you made it past someone else's private profit pay wall to have it. pretty sure that's a demonstrator, you have no rights to that at all.If you only have  food, shelter and water today, because you competed enough for them.Then you are living the same millions years old jungle animal life same as it ever has been for all animals on earth for all time.The real human POV is to stop imaging we can still support the silver back way of life, where we basically only uses our strength for our own self enrichment, not the enrichment of the group as a whole.
 
2022-01-22 1:43:48 PM  
An independent movie theatre in Vancouver did that a few years ago.

https://www.indiegogo.com/projects/save-the-rio-theatre (Fark doesn't like the link)
 
2022-01-22 4:39:51 PM  
Good on 'em
 
2022-01-22 4:41:16 PM  

dryknife: "We've drank all of the profit?"

[external-content.duckduckgo.com image 474x319]


What's that from?
 
2022-01-22 9:00:37 PM  
Of course it's a pub in NSW, the ABC have no mental concept of Australia outside of NSW...

CSB:

Gripes aside, the best pub in Aus I've been too is in Kingoonya. The (only) pub is run by the grandson of the pub when it was built during the trans lines (railway) line to WA.

The town had totally died for a while, but the pub bought it back. (Huge amount of totally abandoned towns where I am)

Alcohol, is there anything it can't do?
 
2022-01-22 9:54:46 PM  

WhiskeySticks: Depending on what else is in the town, this could be the only social hub. Lose that and you end up drinking in your garage with the other townie degenerates. Do you really want a bunch of drunk townies using your bathroom?


Stanhope solved that problem by installing a urinal on a fence on the edge of a cliff.
 
2022-01-22 11:43:14 PM  
"drinking his pay cheque at the bar"
pics.me.meView Full Size
 
2022-01-23 5:11:52 AM  
I'd like to see the financing, but seems like a good idea for a small town trying to hang on to a sense of community. Been to a lot of "private clubs" in dry counties, but they were mostly trash billy hick bars or dangerous dives. Contrast all of those places with Valhalla pub at Rice U. which operates as some kind of nonprofit. A pleasantly weird place to drink cold and cheap beers.

/ Good luck weird little Aussie town!
 
2022-01-23 1:15:36 PM  

apathy2673: "drinking his pay cheque at the bar"
[pics.me.me image 500x689]


Grong Grong
 
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