Why are "session" IPAs the same price as regular IPAs?

Demand....

 

Why is a DVD with quiet music the same price as one with loud music? Because it costs pretty much the same to produce.
But you don't get less music and it shouldn't be judged by how loud it is.

Material costs in brewing are a tiny proportion of the final price.

 

Probably because the packaging, transportation, utilities used during production, and labor costs are essentially the same and make up 90% of the cost of the beer?

No one wants to hear it and it's not sexy to talk about, but the actual beer in the bottle is a small fraction of the overall cost. This is true for brewers of all sizes.

 

I'm okay that Pinner, my session beer, is the same price as Little Yeller, Dales, and Old Chub. Also, I grab alot of Canundrum 12 packs, and don't mind it being there either.

 

So why are imperials so expensive?

 

With the main point being made already that the actual material costs are a small part of the beer, I would also like to say that even if it was much cheaper to make many session ipas fly off the shelves lowering the price wouldn't really make sense.

 

My guess for one factor: R&D costs. IPAs are a well blazed trail. Sessions are newer and there's a lot less of a knowledge base on them.

 

Going from 6% to 10% is a much bigger change than going from 6% to 4.7%?

 

"Got mouths to feed, Yo!"

 

Because we've already fallen into the trap of paying more because they're so much bigger/bolder. Unfortunately doesn't mean they're going to use reverse logic to make session IPAs cheaper.

 

Exactly, but I would say "This is true for commercial brewers of all sizes" before some homebrewer [who has no costs other than raw materials] tries to call you a liar.

 

For those that don't mind a bit of reading, all arguments on this topic were thoroughly covered in this discussion from last year... http://www.beeradvocate.com/communi...sumer-than-moderate-to-high-abv-beers.205527/

 

Because any business that prices its products at "cost+" will not prosper to the extent they could. All successful businesses price their products based on what the market will bear, and then reduce costs to increase margin.

Using "cost+" pricing will result in several bad outcomes, including leaving money on the table (as they say) and making bad decisions about bringing a product to market.

These are generic statements about a business, but they do apply to breweries.

 

They are the same price because that's what the breweries charge for them and what people are buying them for. If the latter changed, so does the former.

 

I buy my session IPA for 6.99 at my grocery store.

 

yes but going from 7% to 9% is the same as going from 7% to 5% which are more accurate numbers, from my experience

 

Here are some brewery costs that do not change based on a beer's ABV:

• brewery building lease or property mortgage
• equipment (purchasing, maintenance, repairs, upgrades)
• employee salaries/benefits
• utilities...heat, electricity, water etc.
• bottling/canning/kegging
• QA/QC
• distribution
• taxes
• marketing
• general business administration and management

If a brewery were try pass along the savings of some minimal difference in malts for a low vs high ABV beer you'd probably have a few pennies worth of savings by the time the beer reaches the consumer. Mind you that assumes the brewer's MSRP is honored by all distributers/stores down the chain, which they have no obligation to do. The only hope a brewer has in significantly lowering their costs is to produce and sell enough volume for economy of scale benefits, like Founder's has with All Day IPA. Reaching that economy of scale point can be very difficult, particularly for smaller brewers, when so many consumers are predisposed against low-ABV beers.

 

I would probably buy low abv IPAs if they were cheaper. I just won't pay $8 or $9 for a six pack of 5% or less beer. Maybe I would if my paycheck was bigger and I had more of an entertainment budget.

 

Because its not always about ABV. Its about good tasting beer. The cost of production I would argue is the same or slightly cheaper than a "regular ipa". Also they are selling like hot cakes so their is little incentive for a brewer to charge less even if they could.

Also it is worth considering that brewerys are making a higher margin on some products and a much lower one on others that equals out to their target profit margin.

If you price all of your beer similarly you will make more on some styles than others but It allows you to keep over all cost stable.

Just a few thoughts, I could be way off base.