How to Properly Address Outrageous Overpricing

Discussion in 'Beer Talk' started by infuturity83, Oct 20, 2013.

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  1. iguenard

    iguenard Zealot (594) Jan 30, 2006 Canada (QC)
    Trader

    I still havent figured out how to quote someone yet, but all I wanted to say is if the goal is to share the beer wealth (or emergency bottled water), all they need to do is put a limit on items per person. No need to gouge while doing it.

    If a store is gouging, I usually just find the nearest shop that has it, and go there. If its so limited that I cant find any... then I just pony up the cash or forget about it.
     
  2. BrandonOakes

    BrandonOakes Initiate (0) Aug 2, 2013 Pennsylvania

    Where in SW PA?
     
  3. KS1297

    KS1297 Initiate (0) Apr 14, 2013 Wisconsin

    Here's a question for everybody: why is it always "greedy price gouging shop owners are charging too much" and never "cheapskate crybaby shoppers aren't paying enough"?
     
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  4. KS1297

    KS1297 Initiate (0) Apr 14, 2013 Wisconsin

    No no please make the arguement! I was being completely sincere. If I'm wrong I would be really happy to know why.
     
  5. Rzzzzz

    Rzzzzz Savant (1,201) Nov 10, 2007 California


    I quit drinking ground beef six years ago.
     
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  6. russpowell

    russpowell Grand High Pooh-Bah (8,292) May 24, 2005 Arkansas
    BA4LYFE Society Pooh-Bah Trader

    One of the reasons I do so little business with the local store, prices are consistently a few buck a sixer over what they are in Tulsa & even cheaper still in Missouri
     
  7. imperialbeerdude

    imperialbeerdude Initiate (0) Feb 5, 2012 Colorado

    Don't buy from that store anymore and instead shop at a store with reasonable prices. Pretty simple really.
     
  8. infuturity83

    infuturity83 Initiate (0) Sep 22, 2009 Massachusetts

    Can you please explain how we "aren't paying enough?" I'm tired of this argument. Most craft breweries I know of are able to produce these brews simply because they are doing very well and can afford the investment in better raw materials. The bottom line is, the retail end of production is usually the one that makes the most profit off a product based on its final cost. Every time I asked about Double Dose, the answer was about $5 per bottle in singles, or about $18 for a 4 pack (4.50 a bottle).

    Seems odd to me that every single source was charging about the same, except for this one.

    Let's do some simple math, shall we? If a single bottle of Double Dose is worth $9.99, that equates to $0.8325 per fluid ounce. If we then consider that a single barrel contains 3,968 fluid ounces.

    By that math, you're essentially saying that every 2 kegs of this stuff is worth $3,303.36! That is just plain nuts. There is no way that the brewery-to-store cost can be even close to that.

    I understand that some beers are considerably underpriced, but $10 for 12 oz is ludicrous for a DIPA.
     
  9. infuturity83

    infuturity83 Initiate (0) Sep 22, 2009 Massachusetts

    I forgot to include this analysis above:

    Let's say that Double Dose cost $750 a barrel to make (which is obscenely high). Even if we figure in appropriate profit margins at all levels (brewery->distributor->store->customer)[btw, I'm defining "appropriate profit margins as 35%].

    So a $750 barrel to produce would be sold to the distributor for $1012.50. The distributor would then pass it on to the store for $1366.875, which would then sell it to the customers at $1845.28 per barrel.

    Since a barrel produces 330 12 oz bottles, this would equate to $5.59 per bottle, with everyone comfortably taken care of. And this assumes the extremely high assumed production cost (knowing some of the prices for malt, hops, bottles, packaging, etc., there is no way it's even close to that for a brewery that can get things wholesale).

    This also assumes that we are always talking about an extremely expensive style like DIPA to produce. The margins become even greater for brews that take much fewer ingredients to produce and can be made in much bigger runs.

    Explain to me again how we're under paying?
     
  10. kzoobrew

    kzoobrew Initiate (0) May 8, 2006 Michigan


    Hit the reply button in the bottom right corner of a specific post to quote.

    A stores goal is not necessarily going to be to share the wealth. They are a business, they are more concerned with making money on the product that sell rather than being a goodwill ambassador to beer world. Beer is a luxury item, the customer always is a willing participant in the transaction. Emergency water is a necessity, and an appropriate time to use the word gouging, when stores start turning up the price on that I will get sufficiently upset, but overpriced beer does not warrant that.
     
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  11. KS1297

    KS1297 Initiate (0) Apr 14, 2013 Wisconsin

    I can't say for sure whether we are underpaying or not. My question is about why the discussion is so one-sided and it's an honest question.
     
  12. rozzom

    rozzom Pooh-Bah (2,620) Jan 22, 2011 New York
    Pooh-Bah Trader

    Haha - I missed that one - amazing!

    To answer the Op's question. Like many others have said, the way to address it is not to shop there. Like it or not.

    I agree with those arguing for more realistic pricing in the realm of craft beer - the sooner the better.

    And to those who've stated that if they owned a store everything would be reasonably priced (no doubt running in tandem with an absolutely "perfect" selection) blah blah etc - get back to reality. These people have a business to run.

    If there is someone on here who runs an independent beer store, that is able to price the same or better vs all competition (including the larger chains), then please opine. Otherwise the armchair store owners are the same who "don't understand" why Founders doesn't make 10x more KBS to meet demand, or why RR has "selfishly" decided not to expand.
     
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  13. jimmy666

    jimmy666 Initiate (0) Jun 20, 2010 Maryland

    If you really feel that strongly about it ( IMO you should not) take a bottle to the register and after it gets rung up say "WTF? I'm not paying that for this bottle!" then leave.
     
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  14. hnandez

    hnandez Initiate (0) Jun 5, 2013 California

    If it's something rare or something that I really want I'll pay as long as it's in my budget.

    I have told multiple cashiers that their prices were way off on certain stuff. They generally don't like that.
     
  15. Dracarys

    Dracarys Initiate (0) May 28, 2013 Alabama

    Because it's only worth what people are willing to pay for it.
     
  16. OldPenguinHunter

    OldPenguinHunter Initiate (0) Oct 13, 2010 California

    I had the same thing happen to me in Cayucos, Ca. A guy was charging $75.00 for Firestone Walker XV: Paul's Liquor was the place. I was shocked and just said no, but as I got further away, I got really angry. So I posted here to vent, as well as FW. FW wasn't very helpful; they even encourage the price- not to thread jack, what I am trying to say is, I would notify the brewery and let people here know about their price jacking as to discourage and inform others about what's going on and where. Some people here will tell you to shut it and deal with it- to stop complaining; but this is a very strong principle- at least with me. Price gouging is bull shit, and retailers who do price gouge, need to be called on it.
     
  17. KS1297

    KS1297 Initiate (0) Apr 14, 2013 Wisconsin

    that's the right answer to a lot of questions but it's not really applicable to this one lol. I'm saying why do we always hear one side if this issue and not the other? I agree that it's only worth what someone is willing to pay, but I find it hilarious what someone complains about the price but buys anyway.
     
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  18. jmw

    jmw Initiate (0) Feb 4, 2009 North Carolina

    A. This is not gouging. Many have told you that but you seem to like using the word.
    B. You've been here long enough to know that this topic has come up many, many times. You're particular indignation is not so important that this 'etiquette' cannot be found by doing a search for the answers. Try the word 'gouging'.
    C. Snark happens. This is the internet. There are some people that feel very strongly that 'shop somewhere else' is the right answer. You trying to tell them to go away just makes it a game.
    D. Your math is cute.
     
  19. Dracarys

    Dracarys Initiate (0) May 28, 2013 Alabama

    Most people here are consumers and not store owners, being willing to pay the price for the beer usually determines whether or not someone's going to come here and bitch about it. I can't think of a good reason for this store to price something significantly higher than the other stores in the area other than the owner thinks that's what he can sell it for.

    What I don't understand about these overpriced/underpriced discussions is how anyone can look at the amount of beer that shelf sits and the number of people that already have sticker shock over craft and seriously think that prices going up can be a good thing for the market.
     
  20. Stugotzo

    Stugotzo Initiate (0) Jun 13, 2012 Florida

    I would have challenged the owner to a "kick in the junk" contest. Just make sure you get to kick first.
     
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