How do Wine Makers Price their wine?
When I browse the wine section in my super-market or Costco or my local wine specialty store or VinoShipper.com I see quite a range in the price of wines. I realize wines are not commodities like wheat, oats, hay, soybeans, oil, gas and hog-bellies. Wine is a "produced" product based on the commodity grapes along with the Art and Science of Winemaking. Which means you have a complex set of factors involved in setting a market price for your product.
Here are the factors I can see that might play in the market pricing of a wine.
The Quantity and Quality of the harvest.
The Quantity and Quality of the wine making process.
The past reputation of the Winery/Wine Maker.
The Market Demand for the varietal.
The Assessment of the Critics
The Profit Motive
And there are probably more...
Of course I may have the factors all wrong.
SO... how do Wine Makers price their wines?
amanda
Here are the factors I can see that might play in the market pricing of a wine.
The Quantity and Quality of the harvest.
The Quantity and Quality of the wine making process.
The past reputation of the Winery/Wine Maker.
The Market Demand for the varietal.
The Assessment of the Critics
The Profit Motive
And there are probably more...
Of course I may have the factors all wrong.
SO... how do Wine Makers price their wines?
amanda
Replies to This Discussion
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Permalink Reply by Ryan Wycoff on -
In these current economic conditions, are the factors that go into pricing wine adjusted?
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Permalink Reply by Mark Chesebro on -
If you have wines priced at 25+ that are not on allocation the answer is yes. Even below that point there is increased discounting. The reality is that at times like these one needs to move product whether you make or lose money. After all, wine is perishable and keeping excessive inventory is expensive and cuts off your cash flow. Some wineries will use this opportunity to promote their brand since they have to discount anyway. This is a classic time to expand if you are nimble enough. In the last recession that is what Kendall-Jackson did. This time around they have been forced to retrench instead. Wine sales have increased steadily over this recession. It has been interesting to see who the winners and losers have been.
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