Beer pricing

you identified the issue - its a catch 22 for brewers - either way you are going to piss someone off

 

In fairness, I live in southeast Pennsylvania, where our arcane alcohol laws, and whatever else, inflates beer prices considerably. But yeah, BA Ten Fidy is literally $20 a can where I've seen it. Not even $19.99.

The solution for me in recent weeks was to get over my FOMO and just pick up less-rarified world-class beers like Sierra Nevada Celebration Ale and the new Guinness 200th Anniversary 12-pack.

 

It's business! Charge what you can, if it's too hi they won't buy.

If you don't like the price, move on.

 

I hit that wall recently, and am focusing on bang for the buck now as well. Of course, I may grab a $20 seasonal 4 pack here and there, but it's mostly that superb Guinness, Kostrizer, and stuff like that in my fridge.

 

BA Fidy hasn't shown up here yet this year, but last year was $11.99 a can. Has there been a significant increase in wholesale price driving it up this year, or are $20 price points simply stores getting what they "can"?

I over-stocked-up on BA Fidy last year and am still drinking through them. I may just buy one this year to compare, since the 1 yr aging seems to have rendered them less in-your-face bodacious than I recall them being when fresh. Would love to get my hands on some Rum BA Fidy.

 

To bring this back to something else you said up thread though, isn't it more often than not going to be the case that going to one of many liquor stores is more convenient than going to the brewery? And thus people would expect and not be too bothered by paying a bit more for the convenience?

I totally understand the "not competing" idea but it doesn't seem as if that would just be a blanket truth in all situations. A lot of breweries are in shit or very out of the way places.

 

Yes

 

And I suppose a small brewery might not be in a position financially to give up some on-premise profit so stores can make more. Since large brewers make more in the distribution channel, they know where their priorities need to be - they can't piss off retailers even if it costs some on-premise profit. Granted - big breweries would only be impacting local retailers.

 

It was $20 here last year too. $11.99 sounds much more reasonable.

 

This "problem" will sort itself out over time. Charge what you like but face the consequences.

 

In theory, they could charge whatever they want to, but buyers will only pay a given price up to a certain point until it's no longer worth the cost. At that point, suppliers will incur a surplus (because no one or very few are buying) which will place downward pressure on the price, forcing a drop.

 

This is kind of my feeling, as well. If someone's outpricing themselves by charging more than what is considered fair market value and their product isn't demonstrably superior than everyone else in the market, then they will reap the whirlwind that comes with doing that.