Great Notion

Discussion in 'Northwest' started by maltmaster420, Jan 22, 2016.

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  1. RedMedicine

    RedMedicine Initiate (0) Jun 3, 2005 Oregon

    I was an East Coaster once and I have to say the BA fests really suck on all levels compared to the PNW festivals.

    Nonetheless, hope Great Notion was received well. Bet no one would blink at eye at those crowler and draft prices out there:wink:
     
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  2. sharpski

    sharpski Grand Pooh-Bah (3,100) Oct 11, 2010 Oregon
    BA4LYFE Society Pooh-Bah Trader

    I remember sticker shock when they first started, but haven't heard more talk like that since. For those closer to GN, is their pricing still a sore spot in the local community?

    I kinda assumed once the accolades kept rolling in, their pricing became less of a sticking point and one decided to either get past it or just buy beer elsewhere. I also assume their pricing hasn't influenced other breweries' price points much, but now I'm curious if anyone has observed a reaction from nearby establishments.
     
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  3. John_M

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

    Just my impression but...

    At this point I think the pricing is a non issue. Most of the folks who are unhappy with the crowler pricing at GN, probably have other reasons why they don't want to buy/drink GN beer as well. Conversely, those who love GN stuff, they probably aren't put off much by the pricing (for growlers or by the glass). I'm sure they wish it were lower, but the difference from the PDX norm isn't enough to make them stop buying GN beer.

    Personally, their insistence in charging an unjustifiable premium for their beer is probably the primary remaining reason why I continue not to be fan of GN. As with many of the better breweries in PDX and Oregon, I find them to be a good brewery with a wide range of different beers (some I like more than others), but their pricing is one of the primary reasons that I find myself having to "make do" with the likes of Breakside wanderlust and Barley Brown pallet jack (for example). It's a sad commentary on my woeful beer consuming life, but I'm trying to make the best of the situation.
     
  4. sharpski

    sharpski Grand Pooh-Bah (3,100) Oct 11, 2010 Oregon
    BA4LYFE Society Pooh-Bah Trader

    Early on, GN referred to their location and the lack of economy of scale in their brewhouse as factors in their pricing. I've been willing to take that at face value, however their recently announced expansion should provide an opportunity to put that story to the test.

    Yes, it's a lot of new debt/investment required to expand, but other breweries manage to expand without it negatively affecting their pricing model. In this case, I think it should change, for the better. "Passing the savings on to the customer" and all that. If GN's pricing model doesn't change after gaining these economies of scale, I'll have a different opinion of their original argument. I realize my opinion will have zero effect on their business one way or the other, but it's an interesting opportunity to guess at the way they calculate their margin.
     
  5. distantmantra

    distantmantra Pooh-Bah (2,954) May 23, 2011 Washington
    Pooh-Bah Trader

    I'll be curious to see they'll charge for a 4-pack for cans of hazy juice IPAs. Hopefully they stay in the $15-16 range like we've seen with Holy Mountain, Fremont, Structures, Block 15, etc.
     
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  6. ElijahSF

    ElijahSF Initiate (0) Aug 30, 2013 California

    West Coasters laugh at the beer prices in the NE area while PNWers laugh at the prices in the bay area and the rest of the country. In the great words of Bruce Hornsby and the Range, that's the way it is.
     
  7. distantmantra

    distantmantra Pooh-Bah (2,954) May 23, 2011 Washington
    Pooh-Bah Trader

    And then Reuben's is able to sell six packs of their Crush IPAs for $10.
     
  8. John_M

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

    I honestly do not understand the point you're trying to make. Folks living in the NW are well aware that we're generally blessed with some of the most gentle pricing in the country (at least when it comes to beer). It's one of the things that's frequently pointed to as one of things that make this such a great beer destination (especially here in Oregon, where to top things off, there's no sales tax).

    I know this is a long thread, and that it's probably unrealistic to ask you to read through it, but the pricing at GN was discussed at length early on in this thread (as Sharpski points out). To summarize, it was pointed out that GN beer prices were high for the local area (on average, I'd say roughly 50% more than what other bars and breweries charge around town). We're aware they aren't high in comparison to what most folks encounter back in the NE (or bay area for that matter), and in fact it was mentioned that GN pricing seemed to be very similar to what one would expect to pay back East for a glass or crowler of NE style IPA (there was even a suggestion that this was no accident, and was one more tie in to the NE style GN appeared to be promoting). A related concern was that GN's pricing might impact the local market, encouraging other pubs, bars and breweries to follow suit. As indicated, we're very happy, and all too aware, that the pricing here is low by national standards. As you can probably imagine, we'd like it to stay that way, and to the extent GN's pricing negatively impacts local pricing, of course that would be unpopular. Even if you're a huge fan of GN, I would think you could see that. So just telling us "that's the way it is," is probably not going to be a popular outlook.
     
  9. ElijahSF

    ElijahSF Initiate (0) Aug 30, 2013 California

    " As you can probably imagine, we'd like it to stay that way, and to the extent GN's pricing negatively impacts local pricing, of course that would be unpopular. Even if you're a huge fan of GN, I would think you could see that. So just telling us "that's the way it is," is probably not going to be a popular outlook."

    My point was that's not going to happen, it's inevitable the beer prices in your area will increase. I'm not one to not like a brewery because their pricing negatively impacts local pricing. I wouldn't be able to drink Alvarado or Moonraker if that was the case and that isn't happening.
     
  10. ElijahSF

    ElijahSF Initiate (0) Aug 30, 2013 California

    I would actually embrace this time as a PNW because of the inevitable happening. It's happened everywhere else in the country even at spots like Cellarmaker in SF (who I love) beer wise and it will eventually (while as much as you and everyone else in your area hates it) happen in Oregon and Washington so drink up while you can still afford to money wise and without losing your self respect.
     
  11. John_M

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

    Thanks for the history and economics lesson.

    It's rapidly becoming apparent that when it comes to GN, you're convinced they can do no wrong. So I think it's pointless to try to explain (yet again) why some of us have reservations about GN. I will say that this comment by you "I'm not one to not like a brewery because their pricing negatively impacts local pricing," is probably not an opinion that is universally shared by most members in the NW forum. Cheers!
     
  12. EdwardAbbey

    EdwardAbbey Initiate (0) Jul 13, 2015 Washington

    I'll be the first to attempt to confirm (for who knows how many times, and starting long before I had an account on this site) that it isn't.

    Personally, I like breweries, even--no, especially--small and up-and-coming ones, who make great beer and put that beer out at fair prices, relative to their local markets. I recognize this makes nothing easier for them, as a small business operating with tiny margins, but it's precisely why I like them so much. I like them even more when I like them "personally," too: by the public face they show and whatever I can gather about their various core commitments and principles behind the scenes.

    I don't know enough about Great Notion to posit that they are not, in fact, great, by all these metrics. But I am supremely confident that anyone who knows the PNW beer scene well knows countless breweries, large and small, who meet that standard of excellence. So many had humble beginnings, proceeded humbly, and then by virtue of those facts subsequently earned their greatness, or are at least well on their way to it. If Great Notion has indeed become one of them, or is about to, they are just one of many here. Regardless, they are not the Son of Christ.

    And what's more, if they also insidiously undermine the regional scene with their pricing, or anything else they practice as a business, and no matter whether it is deliberate or entirely accidental, that will almost certainly be a demerit on their record in the eyes of most. It won't, at any rate, serve as a reason to be indifferent towards them, and much less one to applaud them. Nothing about that is a "great notion," respectfully.
     
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  13. distantmantra

    distantmantra Pooh-Bah (2,954) May 23, 2011 Washington
    Pooh-Bah Trader

    I stand corrected. Astral Projection was $20 for a 4-pack of tallboys. We've reached peak beer. Pray it doesn't get any peakier.
     
  14. EdwardAbbey

    EdwardAbbey Initiate (0) Jul 13, 2015 Washington

    Typically naive and amnesiac for you.:wink:

    With a name like "Astral Projection," the pricing of that beer when finally put into tallboys was destined to shoot for the stars. Now that they've been reached, there is probably no going back for anything which has hype and rarity as two of its primary ingredients. But great beer will always be readily available here, for less money and sans lines. So, save your prayers for things that actually matter...
     
  15. shelby415

    shelby415 Pooh-Bah (2,098) Oct 10, 2011 Oregon
    Pooh-Bah Trader

    As a Portland resident I'm fairly confident that Great Notion's pricing has not had a noticeable impact on local pricing overall, at least I haven't seen it. I'm no expert on beer economics, but I'd imagine it takes more than a single brewery's prices to change things that way. Otherwise I'd be more concerned about Cascade's bottle prices, Loyal Legion's $6 pint, and Growler Guys charging extra for a 32 oz growler fill. All of those are appropriate examples of pricing models that could influence the market that I haven't seen anyone bring up.

    Now, when and if Portland sees a competitor brewing hazy NE style IPAs, maybe the pricing of a like-style beer would be set by Great Notion's prices.

    I know the Great Notion narrative has taken many turns - some more objective than others - but I think this particular notion didn't turn out to be a concern. At least not for now.
     
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  16. DefenCorps

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

    I don't know Astral Projection but i do know that when i was last looking at the prices of Trillium and Tree House, it was in the range of $16-22 for a similar 4-pack. And that they were selling like hotcakes. Makes me thankful for some of the far superior beers i've had from the bigger breweries out there.
     
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  17. hiddendecoy

    hiddendecoy Aspirant (239) Dec 13, 2015 Connecticut
    Trader

    ha I was going to say the same thing. Trillium is easily $5 per can for the DDH stuff and Treehouse is a small bit behind that. NE people pay it because its that much better than most other stuff.
     
  18. John_M

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

    This is generally my impression as well, but frankly, I think it's something that is very hard to discern. As we all know, prices tend to go up gradually over time anyway (due increased ingredient costs, increased labor costs, fluctuations in fuel costs.... you name it), so it's a bit difficult to tell whether a slow creeping price increase is due to those factors, or some proprietor looking over at the GN model and thinking "Damn. They're charging way more for their beer than we are, and seem to be having no problem selling everything they make. Maybe what I'm selling isn't absolutely comparable to what GN is making/selling, but clearly I'm pricing my beer too low for this market. I'll bet if I increase prices by an extra quarter or fifty cents a pint, no one is likely to care or really even notice."

    Shrug. I think the process can be pretty insidious, and not all that easy to parse.
     
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  19. RedMedicine

    RedMedicine Initiate (0) Jun 3, 2005 Oregon

    I'm not sure that it will happen eventually (to the extent it has elsewhere). Oregon and Washington are anomalous when it comes to a lot of things, but particularly beer pricing (draft, especially).

    I've said this before, but few other places in the county do I get the sense that brewery and bar owners want to offer their beers at reasonable, affordable prices because that is what is best for the consumer. They're actually not trying to profit maximally, in fact, the vast majority of places charge far less than what the market could bear (GN being one exception). I'm really not sure that typical economic principles apply to beer pricing in the PNW. Would love to hear an expert weigh in. Especially because that's a pretty big statement and could just be naive, but having lived in Boston, Philly, the Midwest, and Oregon, I'm going to stand by it for now.
     
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  20. John_M

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

    I'm always leery of attributing reasonable pricing to the generosity and good wishes of bar owners. Not that I haven't had generally positive experiences with most bar owners and customer service staff in town, but they're in the game to make a living, and I assume a very good living if they can manage it. The GN model not withstanding, I think the factor that most likely helps to keep prices down is the overwhelming availability of good beer almost every place else in town. Customers have so many different options when it comes to finding good beer, I think that makes it very difficult for any beer bar to charge a price that represents too great a departure from the city wide norm. Obviously, there's still some fluctuation in pricing around town, but I find it to be generally pretty unusual to see a bar charging a price significantly higher than most other places in town (unless there's some niche customer group they're able to tap - no pun intended).

    You mentioned you lived in Philly for a while, so what I'm about to say, I think you'll be familiar with. I lived in Baltimore for almost 10 years, and frequently drove down to DC and up to the Philly area in my never ending quest to find good beer. Finding a good beer bar in the Mid Atlantic was comparable to finding an oasis in the middle of the desert. There were some outstanding beer bars, that's for sure, but when making trips to central Pa. (for example), and attempting to visit multiple beer bars, that usually entailed a good hour or two drive to begin with, followed by another drive of a half hour or more to go someplace else. In Baltimore, the nearest beer bar with what I felt had a decent draft selection (15 or 20 imports and craft on tap), was 20 to 30 minutes away. In that kind of environment, pricing was completely an after thought. If some place was charging double or triple what other beer bars in the area were charging, then there might be some resistance. Customers might drive someplace else. Otherwise, selection, decent parking, friendly customer service, and so on, were much more important than pricing. Here in PDX if I'm unhappy with the prices I see, I can either walk across the street or hop in my car and drive 5 or 10 minutes to find another spot as good or nearly as good as the one I was just at. Those kinds of options for customers, I think make it much more difficult for a beer bar to set a price that is significantly higher than the city norm. It also seems to have the effect of keeping prices generally pretty reasonable as well.
     
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