Poor business practices

Discussion in 'Beer Talk' started by FoamInnovation, Aug 22, 2014.

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  1. FoamInnovation

    FoamInnovation Initiate (0) Nov 12, 2013 Washington

    There still seems to be some confusion about a couple of business practices regarding rare and allocated beers, so I thought I might offer a retailer's perspective, while encouraging other retailers to sound off as well.

    1. Limited purchase quantities: This is done to address small quantities of highly desirable product. The goal is to make sure as many people as possible get a chance to have a sample of these gems. If a shop doesn't do this, it is likely a big spender is going to roll in and swipe all examples of a given product, and either re-sell for profit (usually at ridiculous mark-ups) or sit on it and brag about how they have 6 cases of something while the rest of folks spend another year frustrated, reading about that beer online.
    The benefit to the retailer is not the sale of the beers! It's the word of mouth that spreads through as many people as possible about how your store carries the best of the best, and that those folks may return and buy other beers you carry in addition. The relationship-building is priceless.
    2. Selling rares at huge mark-ups. No store should look to profit solely from the sale of the individual rare beer! This totally neglects the relationship you could build with folks when they know you aren't out to screw them. This is how you get return customers, not simply one-shot folks that are forced to pay through the nose, then resent you and avoid your business for the rest of the year.
    3. Selling old beer. I know, I know. Your distributor isn't necessarily going to buy back or swap out every single time you overbuy or misjudge a product as a potential hot item. You are left with beer that may not be spoiled, and you need to get something back for your hard earned cash you spent to put it on the shelf in the first place. One word--credibility. The second your store gets to be known as having and pushing old beer, you immediately lose credibility as a purveyor of fine beers. Special discounts and BOGO sales may move the beer, but you pay a price, and it damages your presence in the market. My opinion is, it isn't worth it.

    I hope some other retailers pile on, and look for good questions from customers as well.
     
  2. Patbrown2

    Patbrown2 Zealot (627) Nov 27, 2013 Connecticut

    All three points are great ones. Hopefully, retailers pay attention to these, for their own sakes.

    Admittedly, #1 is a nice-to-do....rather than a must-do. But it does inspire repeat purchase.

    But #2 & 3 are sure business killers
     
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  3. MaltLickyWithTheCandy

    MaltLickyWithTheCandy Initiate (0) Apr 22, 2013 Maryland

  4. azorie

    azorie Pooh-Bah (2,471) Mar 18, 2006 Florida
    Pooh-Bah

    I am ok with your #1 if its done fairly. I am not going to care one way or another. Still I hate the in the back thing and all that jazz because then if your NOT there, you then have to hope your employees will not pull any tricks. I say put them on display by the check out if your a small store. put a sign that says limit 1 whatever. When they are gone they are gone.
    No reserves, no employes getting first cut etc. its just 1 of the reasons I STOPPED caring or buying into these so called one off beers scams. IMHO. so that is #2 the rip off.

    3 is nice but the beer I buy is marked and I know the codes. :grinning:

    Its your store though. I never really lived where the places are so small they "know" everyone.
     
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  5. moshea

    moshea Initiate (0) Jul 16, 2007 Michigan

    Interesting points. I would not have a problem buying out dated beer at a discount, as long it is labeled as such.
     
  6. Patbrown2

    Patbrown2 Zealot (627) Nov 27, 2013 Connecticut

    I've never seen a place where old beer is discounted. But I've certainly see places where old beer is sold w/o warning.

    I only get burned once.
     
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  7. briang01

    briang01 Initiate (0) Dec 9, 2009 Maryland

    I would also not be offended by being offered discounted old beer. Most of the stores near me do not even recognize old beer unless they have a whole pallet of a seasonal from last year....

    I would probably pass on the IPA's in this section but I would have no problem buying a lot of beers that are out of date.
     
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  8. Mojo

    Mojo Initiate (0) Jul 21, 2012 Alabama
    Trader

    When it comes to the rare stuff, it seems like the retailer is always in a no win situation.

    I do find the OP's observations to be a good business model.
     
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  9. John_Beeryman

    John_Beeryman Initiate (0) Jul 19, 2014 Virginia

    I don't have a problem with what retailers do. It's breweries. Just make more of the beer that everyone wants. If it pushes out less popular beers, then so be it. Rare/limited beer is, IMO, the worst and most frustrating part of this hobby.
     
    mcrago, PSU_Mike, Hrodebert and 2 others like this.
  10. creepinjeeper

    creepinjeeper Initiate (0) Nov 8, 2012 Missouri

    @FoamInnovation sounds like he cares about his customers AS WELL as his business, which is a plus for all involved. I know that if I lived there, it seems like a shop I would make a favorite as well as a shop that will be there for years to come.

    I, too, do not have a problem buying older beers at a discount as long as they are advertised as such. The exception of course would be IPA's, depending how old they are. I have bought several Belgian dark ales and stouts with a little time on them. Very drinkable. Thanks for the thread!

    I thought I would ask this: do you get to know some of your regulars? Their likes, things they might be interested in? It's a big reason why I frequent my locals over a "big box" liquor store.
     
  11. briang01

    briang01 Initiate (0) Dec 9, 2009 Maryland


    Unfortunately the rare stuff is often rare for a reason. There are passion projects and then there is the 45ibu pale ale that keeps the lights on.
     
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  12. John_Beeryman

    John_Beeryman Initiate (0) Jul 19, 2014 Virginia

    If only passion were not rare. More passion, I say. But stuff I am really referring to is not one-time things, but stuff like Abyss and Dark Lord that comes out every year, but in limited quantities or areas.
     
  13. Vason

    Vason Initiate (0) Feb 19, 2008 Ohio

    In my state, at least, any store that already sells beer at the minimum markup has no option to sell their off-date beer at a discount, so we often have to simply pitch it :slight_frown:

    The first two points are big for the smaller specialty shops, which I think is your intended audience. At a big grocery store, it's often difficult to limit purchases since every cashier would need to be in the loop, but at least we don't mark up rare beers at all.
     
    creepinjeeper likes this.
  14. BeerGreg

    BeerGreg Savant (1,159) May 17, 2013 Illinois

    Yep. I will no longer shop at a liquor store a mile from my house. Besides Pipeworks, they really don't have any IPAs that aren't covered in dust. Last time I was there (probably 2-3 months ago), I saw some Bear Republic from August '13. They don't even distribute here anymore!
     
  15. Providence

    Providence Pooh-Bah (2,652) Feb 24, 2010 Rhode Island
    Pooh-Bah Trader

    Not every brewery wants to make more beer that everyone wants. Check the folks at the Alchemist. They could make tons of Heady Topper and make tons more money if they wanted to, but they don't want to. In interviews you see that Jim Kimmich is more focused on creating a sustainable business that provides him with a degree of comfort in his life and his employees with a degree of comfort in their lives. Simply put, he doesn't seem to want to become huge. He wants to dig out a nice life for his family and provide a nice life for his employees at the same time. Honestly, I wish more people had his take on business.
     
  16. 5thOhio

    5thOhio Pooh-Bah (1,571) May 13, 2007 South Carolina
    Pooh-Bah

    I've bought outdated beer at several stores. Recently got some Chillwave and Lake Erie Monster. A while back I got a sixer of Harpoon Rye IPA and a 4 pack of Nosferatu. I must have an unsophisticated palate because they all tasted fine to me. They were marked down as well.

    However, like moshea said, they should marked as such...and discounted as well, if laws allow.
     
  17. otispdriftwood

    otispdriftwood Initiate (0) Dec 9, 2011 Colorado

    The OP sounds like one of the good guy retailers but unfortunately there are many dbs around who aren't good guy retailers.
     
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  18. otispdriftwood

    otispdriftwood Initiate (0) Dec 9, 2011 Colorado


    EVERYBODY knows that when a rare/limited beer becomes more readily available, it isn't as good.
     
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  19. John_Beeryman

    John_Beeryman Initiate (0) Jul 19, 2014 Virginia

    Really? I didn't know that. So along with water, malt, yeast and hops they boil in some rareness? Once you take that out it's just not as tasty?
     
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  20. Beer4B

    Beer4B Initiate (0) Feb 28, 2014 Florida

    Meanwhile, The Alchemist is breaking ground on the new, bigger brewery any day now! :wink:

    By growing he can continue to provide better living for family and MORE employees...so still noble in my mind.
     
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