2023 Beer Memberships: Adding, Keeping, and Dropping

Discussion in 'Pacific' started by pdmoore714, Dec 3, 2022.

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  1. DefenCorps

    DefenCorps Grand Pooh-Bah (4,838) Jan 18, 2007 Oregon
    Society Pooh-Bah Trader

    If I were local, I'd gladly pay the $30 to be a member. Their BA strong ales are some of the best out there.
     
    bret27, ChicagoJ, SP23 and 1 other person like this.
  2. annakarina

    annakarina Savant (1,003) Jul 29, 2016 California

    I will gladly pay the $30 admin fee. Somebody add me to Private Press. Thank you.
     
  3. John_M

    John_M Grand High Pooh-Bah (6,849) Oct 25, 2003 Washington
    Mod Team Society Pooh-Bah Trader

    Personally, I always feel uncomfortable with this sort of attitude. $30 can easily morph into $50... then $100 and so on. At what point does it become excessive? If membership is limited to only 150, and the brewery is popular, why not just auction off membership slots to the highest bidders?

    The brewer/owner sounds like a great guy and I gather the beers are very good, but even so. I've seen similar scenarios where the brewery in question is highly regarded and membership fees just go up and up and up. Not that my opinion matters, but I tend to be more appreciative of brewery clubs where there's a pay as you go arrangement, there isn't any sort of admin fee, and club size is determined solely by the amount of beer the brewer is able make.... or wants to make.
     
  4. chrisjws

    chrisjws Grand Pooh-Bah (3,302) Dec 3, 2014 California
    Pooh-Bah Trader

    Considering how badly some clubs have been run *cough* Lost Abbey *cough* I have no issue with a fee for administration as long as I'm seeing my money come back in the form of communication, smooth pickups and remediation of issues.
     
  5. annakarina

    annakarina Savant (1,003) Jul 29, 2016 California

    Or a membership you pay $400 for that’s supposed to include $80 in bar credits but the bar credits aren’t available until a week after the brewery location near you closes down on extremely short notice.
     
  6. John_M

    John_M Grand High Pooh-Bah (6,849) Oct 25, 2003 Washington
    Mod Team Society Pooh-Bah Trader

    Just my two cents, but I kind of figure this is something any club member should be able to expect... with or without an admin fee.
     
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  7. chrisjws

    chrisjws Grand Pooh-Bah (3,302) Dec 3, 2014 California
    Pooh-Bah Trader

    Takes time and energy to run a club, no?
     
    fegelFatso likes this.
  8. Xul

    Xul Pooh-Bah (2,139) May 18, 2008 California
    Pooh-Bah Trader

    Pay as you go, no admin fee, and available beer determined by capacity...isn't that basically just how every brewery who doesn't have a club sells their beer? Do you expect a brewery to offer you first right of refusal on buying the beer they produce without you making some sort of financial contribution to the process?
     
  9. John_M

    John_M Grand High Pooh-Bah (6,849) Oct 25, 2003 Washington
    Mod Team Society Pooh-Bah Trader

    Yes I do. I expect to pay a premium to obtain special, limited release beers, but I feel like that should be sufficient. You feel otherwise?

    Again, using wine club experience as a model, the brewery in question has a guaranteed source of income from me as a club member. They don't have to go thru a distributor and hope that someone will buy their beer, and so turn a profit. I think that has some value to most breweries (or they likely wouldn't create a beer club membership to begin with).
     
  10. John_M

    John_M Grand High Pooh-Bah (6,849) Oct 25, 2003 Washington
    Mod Team Society Pooh-Bah Trader

    Of course. But I think the value of having a guaranteed, steady source of income more than off sets the cost. I'm not expecting the brewery to give their beer away for a song. The cost of running the club should be built into the price of the beer.

    I mean, isn't that how it works for pretty much any other business? If you're selling widgets, the MSRP takes into account PR, advertisement, shipping costs, manufacturing expenses, returned product costs, etc. That doesn't work the same way for a beer club?
     
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  11. Xul

    Xul Pooh-Bah (2,139) May 18, 2008 California
    Pooh-Bah Trader

    I do. There's an opportunity cost for the brewery to offer me first right of refusal and hope I purchase enough to make it worthwhile for them.

    If it's pay as you go and there's no administrative fee - as you said, you don't feel you should have to put any skin in the game - where exactly is the guaranteed income for them? Sure, they can boot you out after a year if you simply don't buy anything, but scale that risk out to a full club and consider the differences between the wine club model you cite and beer:
    1) Beer is more perishable than wine and there's inherently more risk for the brewery in holding on to unsold product.
    2) Many beer clubs are fairly young and the breweries running them have less sales data to model out members' spending habits, what percentage of people will fall out, etc. It's considerably easier to run that style of club when you have years of data to work from to manage your costs and risk.

    Managing risk absolutely has a benefit, but allowing customers to take up a slot without any investment on their part barely qualifies as managing risk.

    I think there's a point to be made about advocating for consumers to not absorb excess risk in club scenarios - I've lived through some of them with Lost Abbey and Modern Times, I get it - but I think that a sustainable club is predicated on both the brewery and members recognizing the value they derive from a given setup.

    If you choose to only engage clubs in which you don't have to make even a nominal investment to gain access, that's entirely fair. But attempting to extend that to an objective truth where that could, should, or would work for every brewery misses the mark.
     
    bret27, wolf13, Dimidiata and 2 others like this.
  12. ChicagoJ

    ChicagoJ Grand Pooh-Bah (5,247) Feb 2, 2015 Illinois
    BA4LYFE Society Pooh-Bah Trader

    I can see both sides, but believe the $30 fee is the better route to care for your best customers under this membership format.

    The $30 is collected upfront, so there is some skin in the game and there is less of a chance of scalpers or on the fence customers to just throw their name on the list with no repercussions beyond not being able to do so the following year.

    If the $30 approximates calculated fixed costs in terms of labor time to maintain the list and secondary website portal, etc., by charging $3.75 per bottle more instead of $30 upfront, your least valuable members buying 0-8 bottles are subsidized by your best customers willing to buy 8, 12, 20 bottles.

    The other benefit is upfront cash flow to cover the costs for brewing initial batches. For programs which collect the entire membership cost upfront ($400 for x, y and z), there is no variable component so it would not be warranted to charge an administrative fee.
     
    infectedstouts and Dimidiata like this.
  13. fegelFatso

    fegelFatso Pundit (949) Jun 23, 2013 California

    This! Or makes you pay for expensive shipping to get the beers you paid for.
     
  14. backwash

    backwash Aspirant (276) May 26, 2021

    Is Lost Abbey restarting Sinners? I don't count 2022. The DDG Club or whatever.
     
  15. SoCalBeerIdiot

    SoCalBeerIdiot Pooh-Bah (2,191) Mar 10, 2013 California
    Pooh-Bah Trader

    Same
     
    fegelFatso likes this.
  16. SoCalBeerIdiot

    SoCalBeerIdiot Pooh-Bah (2,191) Mar 10, 2013 California
    Pooh-Bah Trader

    They did not tailor-make this club for you, it seems. Can we move on?
     
    dmsulli, bret27, johnInLA and 2 others like this.
  17. John_M

    John_M Grand High Pooh-Bah (6,849) Oct 25, 2003 Washington
    Mod Team Society Pooh-Bah Trader

    As I alluded to earlier, I can absolutely see the benefit to be derived by the brewery in this scenario. You and @Xul make some good points, but I see the situation differently. I do find it interesting that one would characterize the decision to go into business in order to make a profit an opportunity cost. That being said...

    It's clear we have different definitions of the term "skin in the game.". PP members have to commit to an 8 bottle a year purchase, which amounts to a minimum cost of $310 (plus tax and whatever the cost of physically obtaining the beer). It they don't fulfill that obligation then they lose the right to renew, which at least at this point seems like a pretty big deal (as apparently there is considerable interest in PP beers and I gather there's a wait list to join their club). So I would argue that the risk to PP is minimal (bordering on nonexistent), and that members do have "skin in the game.".

    The other risks you and @Xul reference are simply the normal aspects of running a business. Like any businessman the owner of PP wants to minimize those risks, to which I say the best way to do that is to make a high quality, highly desirable product (which he seems to have accomplished). It sounds to me as if you feel the $30 admin is just additional insurance to further pad the bottom line in order to make sure PP can withstand and/or absorb any market turbulence and vagrancies. I get it, but my response is to do a better job pricing your product.
     
  18. John_M

    John_M Grand High Pooh-Bah (6,849) Oct 25, 2003 Washington
    Mod Team Society Pooh-Bah Trader

    This is beer advocate. We're having a conversation about beer related topics. If the conversation doesn't interest you, it's very easy to ignore it. Likewise, if you don't agree with my point of view, I don't think you should have any problem ignoring me. Cheers!
     
    Jaycase, afrokaze and HopHead84 like this.
  19. SoCalBeerIdiot

    SoCalBeerIdiot Pooh-Bah (2,191) Mar 10, 2013 California
    Pooh-Bah Trader

  20. John_M

    John_M Grand High Pooh-Bah (6,849) Oct 25, 2003 Washington
    Mod Team Society Pooh-Bah Trader

    And yet, you're still here.
     
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