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I refuse to pay a cover charge at bars, I know that much. Beer costs enough as it is, they don't need more money than that, and I doubt any act will be better than the beer.
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Depends on the event, I've seen free concerts get really crowded.
I was in Hyde Park in 1969 watching the Stones for free, I've never paid, anywhere, anytime, to see a better event than that.
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