The "gouging" paradox.

$35 for King Henry makes me nauseas.

 

I'm referring to the Beer Sellar. It was originally $27 but after seeing how quickly it sold, they bought more and bumped it to $35 even though their cost is roughly $12 per bottle.

 

eh...I see what you're saying. But with a mortgage, homework is essential. It's an investment, in many more ways than financial. Now if the consumer is lied to or tricked then that's another story.
But this is beer. Much more important.

 

Ahhh...but you are in Colorado while the situation referred to above is in California. California wholesalers post their prices with the state ABC and all Retailers receive the same price...whether it's the local Sam's Club or the Mom-n-Pop on the corner.

 

i don't know the beer legalities but having worked in the spirits business for a while can tell you Colorado much like Ca is an open state. Sure Colorado is a big independent market because on one liquor license is permitted for any chain but deal levels aren't much different. Case discounts, depletion allowances, Combos, RIPS, IRCs, MIRs and scans are available in all open states (at least in spirits). Sure the beer suppliers try to ensure consistent pricing in the channels (grocery, drug, on premise restaraunts/bars) but deals are available for all but obviously only bigger buyers have the store space and capital

 

Simple economics.
As the price rises, demand falls. As demand falls, the price lowers. As the price lowers, demand increases. Eventually there is equillibrium.

But hey, I'm all for grumbling about paying more for something I want.

 

Well, on the spirits side you are absolutely correct...and, since you worked on that side of the industry, you should be.

The beer side, however, is completely different (at least in California). My last 19+ years have been spent on the beer side and I can tell you without a doubt that in terms of legally selling beer in California:

• There are no case discounts
• There are no depletion allowances
• There are no combos
• I've never heard of RIPs, so I'm guessing they are not legal
• IRC's (Instant redeemable coupons) & MIR's (Mail-In Rebates) are legal if affixed to the package by the manufacturer
• "Deals" are not available at all...let alone "to all" in the beer sector

As stated before, wine and liquor operate at a different standard than beer here statewide.

 

Let the market work it out. Generally the people who buy these beers are in the know enough to know that that's an outrageous price. And for those who would still buy it, it's obviously worth it to them. And if nobody buys it the restaurant will lose money and respect.

 

The thing is, and I say this as someone who has gotten to try Younger each year for the last 8, is that I can't believe anyone would pay that much for any IPA. Wild ale, perhaps. Vintage barrel-aged barley wines, maybe. But an IPA? Please. Not what they're for.

 

So gouging only occurs when people actually pay the price? So you argument is more about semantics?

 

if we all suit up in motocross gear w spikes on it i'm sure we can just go in and take whatever we want for free. long live mad max and cheap beer.

 

Similar thread in the Pacific forum:

I worked in my Grandfather's hardware store in the '70's...the typical corner store with friendly, personal service. He took great pride in offering outstanding quality & service for a fair price.

One of the best pieces of advice he gave me was, "Son, you can shear a sheep multiple times in a year, but you may only eat it once."

 

I agree that it's shitty for stores to upcharge on new products simply due to rarity, but there is a significant investment in both space and capital involved in cellaring beer, and any store that wants to take the risk should be able to charge a reasonable mark-up for something they've sat on for a year or more. The amount of mark up that's "reasonable" is up for debate, but after speaking with wine and beer store owners, the general consensus seems to be that 10-15% per year is necessary to make it worth doing.

 

$17.99 for Ruination and other Stone sixers for $17.99 @ Whole Foods makes ME sick...they can keep it. But every man has his limits, these days I'm more about buying mass quantities of singles, along with choice sixers and eliminating my likes and dislikes fast, life is too short.

 

I dont know if its bad business. FW XV is going to age well, and someone is bound to be happy to find it in the next year or two and pay the extra six bucks to try it. In Chicago, you have a big enough market to get away with being a little immorale(aka a price goughing prick). Doing this with hop forward beers would be bad business.

 

If you don't like the price, don't pay it, if you don't like it and pay it anyway, then don't complain about it because you're the reason why the price is what it is.

Paying $X for a bottle of beer and then coming on BA and complaining about the retailer "gouging" you makes you A) Part of the problem you're complaining about and B) An idiot.

 

same thing happened in Minneapolis this year http://heavytable.com/darkness-cometh-surdyks-and-surly/

 

That would presuppose a level of knowledge about beer that this gentleman does not possess. He simply knows it's a fairly coveted item and prices it according to what he thinks the market will bear. That's fair, but since it's been several months and the bottles are still sitting there at the same price you'd think he would have a sale. I didn't buy any of these, and I don't know anyone who did.

 

The issue isn't stores/bars overcharging. It's that high-end beers are generally being sold well below their market price. Look at the difference between the retail price and the auction-site price of most limited beers. Okay, the auction-site price is probably inflated by weird regulation of alcohol markets. But $20 retail, $100 at auction makes it pretty clear that $20 is less than the market will bear. I think most of this comes from brewers' desire to make their beer more accessible to consumers. Does the wine world have the same issues?

 

If I was a retailer with a beer geek (Sorry, "connoisseur") clientele I would age quite a few of the rare, ageable beers and charge a lot more for them the next year if I had the space. I could see a 50% if not greater ROI without too much effort.