Beer pricing

I am not in the business of selling beer, so I have to ask, are retailers not able to charge what they want for the beer they sell?

Absent this, I would say of course, a retailer should be able to charge whatever they want. There are enough market dynamics to cause the retailer to adjust the price if it is priced incorrectly.

 

Yes, they should charge the highest amount they think people will pay. Maximize profits, that's what they're there for.

 

I'd ask what are they comparing that to? I assume someone coming into your store seeking a stovepipe can of BA Ten Fidy knows they'll be paying a lot. But if they can get the beer elsewhere in the city for say, $14.99, then your price seems high, and since the consumer doesn't care how much your rent is they'll buy the beer elsewhere. Unless there's an opportunity cost that causes them to pay more.

 

Open a brewery instead of a craft beer store?

 

I don't know any craft beer place whose margin depends on those very uncommon specialty items. My local store says it adds a little-a very little.

 

A quick glance at Beermenus puts you in range of other stores in Manhattan, higher than some but not the highest price either.

That seems fair to me. Maybe just let your customers know that stores like yours can't compete with the chains in some areas, but you're better than them in others.

 

So customers are complaining about a beer priced $1 more than the cheapest it is found in the city?

 

I would tell them to go to the brewery then. You are charging a premium because people are buying it at that price. And if the brewery is in another state I don't see many people investing the time, cash, etc. to get the beer. Supply and demand....

 

If the prices are higher than you are willing to pay then simply choose to not buy the beer. There are a number of local breweries near me that will charge up to 25 bucks for a 4-pack. The choice is pretty simple for me - I buy other beer that is priced more reasonably.

Cheers!

 

If you were selling BA Ten Fidy for the second lowest price in all of NYC, and only $1 more than the lowest, I would not call you a crook. Also, even if you were twice the cost, I still wouldn't call you a crook, because as I said in my first post, you can charge whatever you want. I just wouldn't buy it from you.

Question: Did you sell out of your BA Ten Fidy and how much did you get?

 

So what's the problem?

 

I say let the market determine but again, my local store, not wanting to alienate his base, doesn't overprice on low volume one offs. The whole debate on how to distribute these raged for pages at a time on these boards a few years ago and has calmed--likely due to just more stuff out there.

An old grocer who eventually became a billionaire that I grew up near had a motto--
"I would rather make 5 hot pennies than one slow nickel."

Your market seems a bit tougher than NC so do what feels right and keeps folks coming back.

Good luck.