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Almost 50% of a difference when you're on the exchange menu versus when you're not. >> the sales for the items that were part of the drink exchange were so much higher than anything else, that their liquor distributor got word of this and wanted to feature some items for their clients, to make sure that they were being sold. >> brilliant. it's the -- it's a great example of rethinking the data that you have available to you already. and how you might use that. in this case to make more money. >> and more drink distributors asked to have their brands listed on the drink exchange, frank and todd...

>> and that's exactly how frank sees it from behind the bar at the tipsy crow. keeping customers engaged, he says, makes all the difference. >> the difference between somebody staying and buying one drink, and buying any drinks, or buying five or six, or coming back the next day. >> recently, frank installed a bar game at the tipsy crow that uses sales data to change the prices of his drinks. it's called the drink exchange. and it works like the stock market. where high demand causes prices to rise. and low demand causes prices to drop. >> so as a patron if you walk into the bar, you see these...

hi there, everyone. i'm j.j. ramberg and welcome to "your business." data. for anyone who's not in to crunching it it sounds like a scary word. and it kind of sounds like something for big companies with big budgets. but you know what? it is not. we all have information hidden in the data we're collecting on our customers and it's just a matter of figuring out how to look at it and then what to do with it. we found a corner bar in san diego that's done a great job at both collecting data, and then acting on what they've learned. just a little research has resulted in a big increase i...

Determined by algorithms tied in to the bar's point of sale system. >> a point of sale system is a data collection system. what is changing is the ability to open up the black box of that data and combine it with other data sets that you might have. >> with realtime sales data driving price changes, the game often leaves customers to choose the bargain drinks, whose prices may drop but whose profit margins remain high. >> it will drop the price of say a tequila shot. and they make a high profit margin on tequila, so all of a sudden people start buying tequila. so, we really created a system fo...