The "gouging" paradox.

This and only this. If stores started selling 6packs of Nugget Nectar for $30 each, and people bought up all their stock... then clearly, $30, while being a substantial price increase, would still be an entirely "fair" price for said beer.

 

this is why I think stores that charge more ("gouge") are good. They can satisfy both markets of people. Maybe you have no problem paying $50 for Bramble because your time is worth more. There maybe be someone tight on money that feels the amount of time to hunt down a bottle does not matter as long as he only has to spend $20.

If everyone worked as many hours as they wanted and made as much money as they could for the respected hours, then yes there would be a standard price that would be fair to everyone. But that is not the case.

 

To the people who complain about gouging, do you:
1. Complain about marginally higher gas prices at highway rest stops vs gas stations 5 minutes off the highway?
2. Complain about higher prices of apples/ bananas/white bread at a 7-Eleven vs the same thing at a grocery store?

 

thank you for saying this. i bit my tongue until someone else pointed it out. firestone makes quality beers, but they do not age well.

 

I see what you're saying. Supply wouldn't be an issue...the store can receive/supply all it wants. The product is not a rarity (i.e. hard to get). Demand may be a bit trickier to nail down. There may be a demand, but that wouldn't justify higher prices...that would be unfair: "unlimited" supply with "unlimited" demand.
Legal? Perhaps. Bear with me, this is hypothetical. Yes, another store could open. Perhaps nobody wants to do it, maybe it's a small town....perhaps the land is haunted

 

Now we're getting somewhere. Greedy ghosts are clearly behind all this "price gouging".

 

I think Parabola has aged well, I liked the bottle I opened at xmas. I guess that's only 8 months, but I also liked the pour of B1 I got at sourfest, and it was >1 year at that point.

 

I understand the business relationships. I also understand the theories taught in Econ 101. I guess all I'm saying, and maybe not so eloquently, that if I have a group of consumers that voice a perceived injustice with regards to my product, whether it be caused by me or some other supplier, I will address that perceived injustice. I won't tell my customers, "hey man, you need to go check the Colorado Revised Statues for the real definition of gouging," or, "hey dude, you know what Alex Smith said, 'that's capitalism baby, suck it up.'"

And yes, if I set prices of my product so that the going retail margin reflects the price I would like it sold at, and if the retailer (or whoever else) decides to add an additional 100%, I do think that's unfair. That pricing could affect the perception of my product or business and it could offend, for lack of a better word, my consumer or potential consumer. Is that action by the retailer legal? Yes. Does it fall within the theories of capitalism? Yes. Will the market correct the pricing? Maybe. That doesn't necessarily make it fair or ethical to me or my consumer.

 

I see you're a brewer by profession (and I wish I stopped by when I was in Breckenridge last year), and so, your perception is different. In general, a retailer doesn't care about how the public perceives your product, he cares about his bottom line. And if he can boost his margins by pricing significantly above MSRP, he will. And if the market for that particular brewery collapses, he has no problems, because he can probably find another brewery that he can make a quick buck on. It is, maddeningly and frustratingly enough, part of your job profile as brewer, to deal with stores that cause these problems for you (if you didn't have enough to do already!).That said, I'm not a fan of this approach, because I don't think it's sustainable in the long term.

 

Addressing negative consumer feedback is often good business. But perceived injustice != actual injustice. There's no real moral dilemma here.

We got pretty close to resolution, but then you started referring to fairness and ethics again. There's absolutely no moral dimension to the scenario you just described.

We agree that brewers will often have an interest in controlling the resale price of their beers, and they are free to negotiate for that control in their contracts with distributors and retailers. But regardless of how much the retailer chooses to mark up his product, he's not engaging in a moral action.

I truly apologize if I'm beating a dead horse here. I'm sure there are plenty of people who are annoyed that this thread keeps getting bumped to the top of the forum. I just get tired of all the moralizing that goes on here about the pricing of rare beers.

 

Imagine if beer were essential. More of my tax dollars going to fund a beer-for-all program...

 

Funny you should say that. Courts in Lithuania seem to agree that beer is essential:
http://www.theregister.co.uk/2012/03/05/carlsberg_ruling/

 

I haven't had to deal with it. All my retailers are pretty awesome. Not sure what I would do if I had to deal with it.

 

They also forget that they brew in Cali and distribute first everywhere else.

 

Oh yeah, and next time you're around, do stop by and we'll have a pint. That goes for anyone else. Even if we disagree.

 

sorry to disagree here, but the XIII (I just had) was delicious.

 

Wait so if I disagree with you I can stop by for free beer? Man we gotta talk more often

 

One store was selling DFH 120 for $10 a bottle another store about 10 miles away was selling it for $30 a bottle. I told the owner of the store, which had the $30 bottle, about the $10 bottles accross town. He laughed and said," There practically giving the stuff away!" I did not buy a bottle from Mr. $30 a bottle. But did buy 2 for $10 a bottle.

The store that had them for $30 a bottle sold out in about two hours. He said he had a case. I love DFH 120 but $30 for a 12oz bottle?! That bottle better cook me dinner and clean my dishes too! And cuddle afterwards!

 

I think anyone can charge whatever they want whenever they want...its called a free country. Whether we decide to be complete dumbasses and pay ridiculous prices for beer and continue to do business with these immoral a holes is our own undoing. At the same time, these guys are sitting on some overly hyped lemons that they have to swallow time after time, so maybe they know they have gem and want to get their money back.

 

well within your right to disagree. did you have it fresh?