Are Beer Prices Going Up?

I think it depends on the brewery. Take De Garde for example their stuff is cheap. We should promote pricing like that since we are part to blame for expensive prices.

 

The cost of the product is a factor. Breweries can't just keep raising prices forever, even if the demand is there, because other brewers will enter the market.

If it costs ACME Beer $5 to make a six (after factoring in all expenses) and they sell to the pubic for $10, netting $5 profit, they are able to do so because the demand for the product allows it.

However, the new ABC Beer company decides that it will make the same quality beer for $5 a six, but that it is happy making $3 profit so it sells to the public for $8 a six.

If ABC later decides to sell for $10 because demand permits it, then XYZ Beer will start making beer for the $5 and selling for $8. And, so on.

In the end, the cost of production does affect the price paid by the consumer, unless a Brewery can make a unique product for which consumers see no substitute and for which other Breweries cannot make a substitute. Only then will price be strictly based on whatever the market will bear regardless of production cost.

 

That's crazy. You should move to AZ. We have affordable regional beers! Always helps to cut coupons too.

Fresh Founders Harvest Ale for the win.

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To be fair to my local Distro I will say that backwoods and harvest have just been released here and the price has actually gone down. Backwoods is now $16+tax instead of $20 and Harvest is $20+ tax instead of $24 like it was last year. However, we haven't seen as significan a drop in the price of other beers so I'm wondering if Founders Brewing called our local Distro out for pricing it so high last year.

 

Although homebrewing is cheaper, I'm sure as people migrate more to it to save money from retail beer buys, the homebrew stores, will jack up the prices to maintain supply/demand. If you want to save money homebrewing, now is the time. One thing I've learned over several decades of being an adult is the consumer only wins in the beginning of a new movement until the producers learn how to maximize profits. Whether its free TV, free download music, cheap homebrew etc. eventually the consumer gets screwed in the end due to capitalism.

 

Beer prices are going through the roof in my neck of the woods, tax, tax, and taxed again.