How to Properly Address Outrageous Overpricing

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

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  1. Leebo

    Leebo Initiate (0) Feb 7, 2013 Massachusetts

    Laws of supply and demand. Capitalism. My 4 pack was $21.00. Was I going to complain about the extra $ 2.00, nope. The 1 case that the store received was not on the shelf yet. My beer guy" Jim" told me about this limited release. I thanked him and bought the 4 pack. You should get a better beer guy(or gal) or store. Related note, new craft beer cellar open in Westford.
     
    Chegui likes this.
  2. TheGator321

    TheGator321 Initiate (0) May 29, 2013 Connecticut

    paid $5.27 at Deciccio's Armonk just to try it. I would not pay the $19 for the four pack. good beer. not great. keep in mind this is ultimately an otter creek beer.
     
  3. pjs234

    pjs234 Maven (1,453) Jun 29, 2008 Connecticut

    Why do you think 35% is an appropriate margin? Most retail operations need to get a 50% margin to cover salaries, rent, utilities, and the like.

    Edit: I am speaking from my experience in public accounting. Have worked with many retailors, none that are package stores, so I am truly asking if it is different.
     
  4. rozzom

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

    With the exception of a handful of breweries, where the pricing is more realistic already (think, Bruery), most breweries' beers (thinking more in terms of MSRP rather than where certain stores actually set the prices) tend to fall in the range of $0.10 per ounce (year-round sixer) to $0.80 per ounce (barrel aged, anniversary etc).

    So when I say I think prices should go up, I'm not suggesting across the board, only on the more limited releases. For example KBS works out around $0.60-0.65 per ounce. I'd rather pay $1.30 per ounce and have the opportunity to buy one bottle, than miss out on buying one for half the price. Not sure if that makes sense - just my opinion. But like everyone else, my opinions are based around what would work best for my situation.
     
  5. LeeMarvin

    LeeMarvin Zealot (630) Jan 15, 2005 Massachusetts

    Capitalism is a hell of a drug.
     
  6. KS1297

    KS1297 Initiate (0) Apr 14, 2013 Wisconsin

    Yea that doesn't really make sense to have these pricey beers going bad on the shelf. That sounds like the store's problem and hopefully they will correct it. Regarding high prices in general though, I can say that there is an upside in that a high priced thing incentivises other people to start making more of that thing because there's obviously money to be made. But eventually that increase in supply causes a decrease in price and the added bonus of greater selection for us :grinning:
     
  7. Longstaff

    Longstaff Initiate (0) May 23, 2002 Massachusetts

    Point, laugh, then ignore. Can't think of any beer store I've been to where I haven't done that at one point or another - usually happens everytime I'm in one.
     
  8. crashdavisinoh

    crashdavisinoh Zealot (594) May 24, 2010 Ohio
    Trader

    Shop elsewhere. Do people really understand what price gouging is? On a side though ...would anyone have a problem finding a beer cheaper than it usually is? No...no one would say I'm sorry shopkeep...this needs to be priced higher. It's capitalism to find things more expensive and cheaper on occasion...gotta take the good with the bad.
     
    yemenmocha likes this.
  9. tommysagblad

    tommysagblad Initiate (0) Oct 6, 2011 Connecticut

    There's a beverage here man.
     
  10. Dr_Bahmbay13

    Dr_Bahmbay13 Pooh-Bah (1,751) Mar 10, 2013 Michigan
    Pooh-Bah

    I just wouldn't buy it. These over priced bombers are the same thing around these parts. I guess one way to get your point across would be.....purchase it, open it in the store, and dump it out all over the counter with big grin on your face, then return the bottle.
     
  11. Zimbo

    Zimbo Pooh-Bah (2,305) Aug 7, 2010 Scotland
    Pooh-Bah

    Don't buy it. Easy.
     
  12. CSpoons

    CSpoons Zealot (501) Nov 13, 2012 Maryland

  13. Andrew041180

    Andrew041180 Initiate (0) Mar 15, 2013 Massachusetts

    Whenever I pick up something for which I either can't find a price or misread the shelf labeling and the person at the register is ringing me up I ask if an unexpected price is correct. If he/she says that it is, I apologize and say that I need to return the product to the shelf and get something else. At least that way I've given some feedback. Like most of the others here I let my wallet do my talking.

    Re: bottled water after natural disasters, I read a compelling argument for selling gasoline at $25 a gallon after Superstorm Sandy. Basically people would only buy the gas they need, instead of filling up their SUV to the gills and then stuffing a couple spare gas cans inside it. People would buy less until the supply chain restored itself and other people wouldn't be stranded on the side of the road when they go to buy gas and find there is none available.
     
  14. infuturity83

    infuturity83 Initiate (0) Sep 22, 2009 Massachusetts

    From the retail end, you may very well be correct. I'm working off of the one beer store owner I know who actually explained how he prices. He takes the per-bottle cost and adds 35%, and his prices are very standard, so I figured this was about the standard.

    Even so, using the example I gave, with the obscenely overpriced barrel at $750. Even if we bring everybody's profit margin to 50%, we still end up with a retail barrel cost of $2531.25, which equates to $7.67, still well under the 10 bucks being asked at this store. And again, I must reiterate, that is assuming an astronomically overpriced barrel.
     
  15. jpsy422

    jpsy422 Initiate (0) Jul 12, 2009 Illinois

    Stadiums charge $8 for a bud light and people buy it and add on a tip.

    For an extra dollar you could be drinking an awesome Beer in your home.

    It's almost a deal.
     
    MinorThreat and HRamz3 like this.
  16. nophunk

    nophunk Zealot (673) Nov 27, 2011 Louisiana
    Trader


    I understand 100% where you are coming from.

    Semibaked, you are lame and uninformed.

    To the people defending 100% increases over other stores reasonable rates because this is a free market system and you can, you are the kind of people causing awful problems for America.

    I say chat with the person in charge. I think you will be able to figure out very quickly what kind of owner you're dealing with, and it shouldn't be hard to make a decision after that.
     
    lightman1 likes this.
  17. nophunk

    nophunk Zealot (673) Nov 27, 2011 Louisiana
    Trader


    Beer is not a very expensive beverage to make. Beer should be about community, drinking, good times, camaraderie, sharing your passions, etc.

    Strictly for profit businesses are eroding the middle class and widening the gap between the wealthy and very poor. If the Sam Adams guy is worth over a billion dollars and still selling his beer at reasonable prices, I don't see all of these "beer is too cheap" arguments being valid.
     
  18. charlzm

    charlzm Initiate (0) Sep 3, 2007 California

    Ask the shop owner point blank (but without rancor) why the beer is so much more expensive than what you have seen it priced for elsewhere. If you don't like the answer, tell him nicely that you'll be shopping elsewhere. Then do that.
     
  19. charlzm

    charlzm Initiate (0) Sep 3, 2007 California


    I know a store here in California that is sell HT for $8.99 a can because it's all on the DL (the beer not being officially available here in CA). I paid it a couple of times because I wanted to try it and I don't trade.

    If I were to want that beer (or any beer form out of distro area) on a regular basis, I'd find a shop willing to ship to me. After shipping, though, the beer would be closer to that nine bucks a can than I'd like to admit...
     
  20. nophunk

    nophunk Zealot (673) Nov 27, 2011 Louisiana
    Trader

    When I get cases shipped to me it comes out to about $5 per can, and I think that's pretty solid for living in Louisiana and it's such a great beer.
     
    charlzm likes this.
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