Comments on: What is something worth? http://artisanfamilyofwines.com/blog/?p=1998 Winemaker Journal Wed, 22 May 2013 13:23:01 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: Christian Miller http://artisanfamilyofwines.com/blog/?p=1998&cpage=1#comment-6107 Christian Miller Fri, 27 Apr 2012 21:54:10 +0000 http://artisanfamilyofwines.com/blog/?p=1998#comment-6107 Wait a second Tom. What if the wine doesn't sell out before the next vintage (setting aside volume variations) at , say, $50 a bottle. Then they hire some genius (or maybe you or me instead) to help them with their PR or Market Research, make some changes in their marketing, and the next vintage sells out in 3 months, again at $50. Was the first vintage under-priced or over-priced, for that wine? Wait a second Tom. What if the wine doesn’t sell out before the next vintage (setting aside volume variations) at , say, $50 a bottle. Then they hire some genius (or maybe you or me instead) to help them with their PR or Market Research, make some changes in their marketing, and the next vintage sells out in 3 months, again at $50. Was the first vintage under-priced or over-priced, for that wine?

]]> By: Zoeldar http://artisanfamilyofwines.com/blog/?p=1998&cpage=1#comment-6105 Zoeldar Thu, 26 Apr 2012 16:27:24 +0000 http://artisanfamilyofwines.com/blog/?p=1998#comment-6105 As usual, we in the wine industry believe our products are dramatically different than other markets...yes and absolutely no. Who determines the price - it will always be the consumer. sure, we set prices, we decide how to market/position/etc. based on what's in the bottle...but the consumer has the final vote, as Tom alludes to. The difference between vino and CPG is the wide variability of positioning...peanut butter will always be peanut butter, and even Whole Foods, selling a custom crush PB, can only charge so much above Jif and Skippy, even if it is the Mouton of PB. Our market ranges from $1.99 to $1,500 or more...without too much rhyme or reason (if you strip away the hype). Always a fascinating discussion full of perils. At the end of the day, for the money/profit, do as Willie Sutton and follow the money - it is all about volume and sub-$8 bottles...aka Barefoot, Moscato, Wine in a Box....and one would never mistake a fine PS or Cab or whatever for the cheap stuff. After that, it is all about Direct Sales and circumventing the (almost criminal) 3-tier oligopoly we all live with...that, with a well-run biz, can allow one to survive and sometimes even make a modest profit in today's wine world. Z As usual, we in the wine industry believe our products are dramatically different than other markets…yes and absolutely no. Who determines the price - it will always be the consumer. sure, we set prices, we decide how to market/position/etc. based on what’s in the bottle…but the consumer has the final vote, as Tom alludes to.

The difference between vino and CPG is the wide variability of positioning…peanut butter will always be peanut butter, and even Whole Foods, selling a custom crush PB, can only charge so much above Jif and Skippy, even if it is the Mouton of PB. Our market ranges from $1.99 to $1,500 or more…without too much rhyme or reason (if you strip away the hype).

Always a fascinating discussion full of perils. At the end of the day, for the money/profit, do as Willie Sutton and follow the money - it is all about volume and sub-$8 bottles…aka Barefoot, Moscato, Wine in a Box….and one would never mistake a fine PS or Cab or whatever for the cheap stuff. After that, it is all about Direct Sales and circumventing the (almost criminal) 3-tier oligopoly we all live with…that, with a well-run biz, can allow one to survive and sometimes even make a modest profit in today’s wine world.

Z

]]> By: Mike V http://artisanfamilyofwines.com/blog/?p=1998&cpage=1#comment-6103 Mike V Wed, 25 Apr 2012 16:09:04 +0000 http://artisanfamilyofwines.com/blog/?p=1998#comment-6103 Tom Wark is exactly right. It is supply and demand. If a crappy wine sells out at $50 so be it. People want it. If a good wine doesn't sell at $25...lower the price. I work for a winery and we do try to price wine to sell out in 365 days. Wouldn't it be nice if that actually happened! Tom Wark is exactly right. It is supply and demand. If a crappy wine sells out at $50 so be it. People want it. If a good wine doesn’t sell at $25…lower the price. I work for a winery and we do try to price wine to sell out in 365 days. Wouldn’t it be nice if that actually happened!

]]> By: Tom Wark http://artisanfamilyofwines.com/blog/?p=1998&cpage=1#comment-6102 Tom Wark Wed, 25 Apr 2012 15:30:45 +0000 http://artisanfamilyofwines.com/blog/?p=1998#comment-6102 Jeff: This one is pretty simple. If a wine sells out easily prior to the next vintage being released, then it is probably underpriced. If the wine does not sell out by the time the next vintage is released, the it is probably overprised. This means that the $300 Napa Valley Cab that sells out is at least price correctly and is worth what it is priced at, if not underpriced. Jeff:

This one is pretty simple. If a wine sells out easily prior to the next vintage being released, then it is probably underpriced. If the wine does not sell out by the time the next vintage is released, the it is probably overprised.

This means that the $300 Napa Valley Cab that sells out is at least price correctly and is worth what it is priced at, if not underpriced.

]]> By: jonathan r bates wine broker chatsworth ca http://artisanfamilyofwines.com/blog/?p=1998&cpage=1#comment-6101 jonathan r bates wine broker chatsworth ca Tue, 24 Apr 2012 23:18:48 +0000 http://artisanfamilyofwines.com/blog/?p=1998#comment-6101 Jeff, great post. 43 years in this business, it has been a fun ride! Really makes you think! I like it. Good show! Jonathan R Bates Wine Broker Chatsworth, California Jeff, great post. 43 years in this business, it has been a fun ride! Really makes you think! I like it. Good show!
Jonathan R Bates
Wine Broker
Chatsworth, California

]]>