Am I Taking Crazy Pills

On January 1st I bought my old bosses bar from them. I've worked for them for years and bartended for 12. One of my first tasks was creating a rental policy for our backroom/event space. It has a curtain that can separate it from the bar and tables. But, acts as part of our dining room when not in use for events.

The old owner would constantly wave room fees for anyone who called and bitched. It would piss off the staff because they were supposed to get autograt and set up wages from the room fees. So often a bartender or server would serve a group for hours only to walk away with $20. Also, it really wasn't making money for the bar. When you close off the backroom and no one is really paying for it.

I made my prices in my opinion very cheap. I didn't want it to be unaffordable being in a smaller area. The pricing from the old owner was supposed to be $100 for half $200 for full. I made rates depending on the demand. $75 for a weekday morning up to $250 for a weekend night.

I've successfully planned multiple parties getting people's budgets and giving them options that fit. Today I had an extremely angry gentleman. Because, he wanted a group of 50 people to have wings, meat and cheese trays and veggie trays. Not pay the room fee and max budget of $200. For a Friday night.

I told him he'd had to pay a room fee. He responded with "I've never had to pay that before". "Okay but that's how much I have to charge for my space". "Well then I guess I don't need your space then".

I just want to make sure I'm not out of line. I feel my pricing is reasonable. I hate to say no to business. But, I'd lose money on the food after paying employees etc. Unless they drank like fish I will make much more money having my backroom open to diners. First time I've had to turn down business and I just don't know how to feel. Am I taking crazy pills?