Quantcast

Tag Archives: wine prices

First Wine Curmudgeon wine prices survey

winetrends

wine pricesThe biggest impression from the first Wine Curmudgeon wine prices survey? That several of my assumptions about wine prices may not be true, including that prices are not  a function of where in the country the store is located. Second, that wine is increasingly treated like other consumer packaged goods, where pricing is not about cost but about bringing customers into the store and serving as a loss leader.

The caveats first: I only got prices for 50 wines or so from the blog’s readers, so there is nothing scientific about this. I know better than to make that claim. But, as we repeat the exercise every year, we should be able to work our way to more prices and better results. And my thanks to everyone who participated.

So what generalizations can we safely get from this?

• Costco, if it doesn’t have the best wine prices in the country, is the standard by which other retailers price their products. It’s not news that many retailers in markets that compete with Costco match the warehouse chain’s prices, but it surprised me just how low other retailers will go. How about $7 for Smoking Loon, Ravenswood, and Mark West at a Denver-area retailer? That’s more or less the wholesale price.

• Independents don’t necessarily mean higher prices, especially in very competitive markets like New York City. One reader paid 20 percent less for the Los Dos garnacha blend in Manhattan than I did in Dallas.

• Grocery stores remain the great unknown. Raley’s, a chain in northern California, beat Total Wine and BevMo, two of the biggest chains in the country, on Michael David’s Earthquake zinfandel. Haggen’s, which aspires to be a big-time West Coast grocer, charged almost three times as much as Costco for Toasted Head chardonnay.

• Expect to pay more if the wine isn’t well-known or a Big Wine brand, or doesn’t have a powerful distributor behind it, regardless of who sells it. Bonny Doon’s Vin de Cigare rose was the same price, $15, in Dallas and the East Coast.

• Imports, and especially from France, may be a couple of bucks more than comparable domestic wines, even if they don’t offer a couple of bucks more of value. This is another example of how the French still see the U.S. as a captive market, and don’t understand that it isn’t 1976 anymore.

 

Restaurant wine prices: A better way

winetrends

Restaurant wine pricesWhat better way to follow up this month’s very popular post about escalating restaurant wine prices than with a story about restaurants that charge reasonable prices and sell more wine — and make more money — in the process? That was the theme of my piece in the current issue of the Beverage Media trade magazine, where one restaurateur told me: “We want our customers to be able to have dinner for two with a glass of wine each for $35 a person.”

Revolutionary thinking in a world where glass of wine costs $10 and bottles are marked up four times their wholesale price, no?

The highlights of the article, as well as a few of my thoughts:

• The debate centers around volume vs. margin; that is, does the restaurant want to sell a lot of wine, or is its business model focused on the amount it makes per bottle? This margin approach, which has been the model most restaurants use, has given us the $10 glass. Not surprisingly, those who use it still see no reason to change.

• Yet an increasing number of restaurants see a better way. “There is sort of this infrequently spoken gripe from consumers: ‘Why are we paying these kinds of markups?’… [T]hey are going to be cynical about your wine program.” says Stan Frankenthaler, chief officer of food, beverage and strategic supply for CraftWorks, which operates about 200 restaurants under 11 brands, including Old Chicago and Rock Bottom. That someone at a chain said this speaks to the failure of the margin model, since chains have some of the worst and most marked-up wine lists.

• A better approach: Pricing tiers, like 4 times wholesale, 2½ times, and 2 times, based on quality and availability. If the wine is difficult to find, for instance, or offers exceptional value, we’re more likely to pay 4 times markup — and especially if we have legitimate, less expensive choices instead of grocery store wine masquerading as something else.

• This story includes advice from my pal Diane Teitelbaum, who died shortly after I interviewed her. “You can sell a $100 bottle once a day, or you can sell $20 bottles of wine all day and all night,” she told me. No wonder everyone misses her so much.

 

 

The Wine Curmudgeon’s first wine prices survey

winetrends

wine prices One of the difficulties with writing a wine blog that focuses on price, and that most of my colleagues don’t have, is that there is no standard for wine prices in the U.S. One region’s $10 wine can be another’s $15 wine, and this doesn’t take into account states with minimum pricing laws or those with government-owned retailers.

It’s not the problem availability is, but it’s enough of a problem that I decided to do this post, which is also something many of you have asked for. The goal is to get pricing data from readers around the country, put it into a spreadsheet, and see if we can determine regional differences. That is, we’ll know that a wine in Dallas will cost 10 percent less in one place or 15 percent more in another. That way, when I list the price, you can make the appropriate adjustment.

So let’s do this:

First, e-mail me the prices for two or three wines you buy regularly, as well as where you buy them. Or, you can click the Contact link at the top of the page. Preferably, these should be wines we talk about on the blog, since doing it for wine prices higher than $15 won’t help much. I’ll take your prices for the next month or so, until Mother’s Day.

Then, I’ll flesh out your numbers with wine prices from retailers I know around the country, using your wines as the guidelines.

Finally, I’ll crunch the numbers and publish the results on the blog. We also might be able to learn a thing or two and make some news in the process: Are Big Wine prices more consistent? Do state taxes make that much of a difference? Are some retailers more or less expensive?

Powered by WordPress | Designed by: suv | Thanks to toyota suv, infiniti suv and lexus suv