Price gouging

Discussion in 'Beer Talk' started by Ndfan1323, Dec 21, 2014.

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  1. Ndfan1323

    Ndfan1323 Initiate (0) Jan 26, 2012 California

    Hey everyone....last year I remember a post about price gouging. I believe it was posted by Goose island and they requested people who witnessed this to bring it to their attention. I know every market and every store has different price points but there is a particular store that is literally over $6-7 dollars more than stores I go too, of course much further away from me and this store is closer.
    Is there a way to find out the somewhat avg of what the prices should be? I mean I see $1-2 difference everyday but 6-7 is a lot.
  2. mudbug

    mudbug Initiate (0) Mar 27, 2009 Oregon

    This is a free market. There is no such thing as price gouging on non essential products. Only stupid consumers, one born every second.
    bld81, TMoney2591, zeledonia and 29 others like this.
  3. 5thOhio

    5thOhio Initiate (0) May 13, 2007 South Carolina

    Don't like the price? Don't buy it.

    That's why I don't shop at Nieman-Marcus or Tiffany's.
  4. Ndfan1323

    Ndfan1323 Initiate (0) Jan 26, 2012 California

    I agree, don't buy. But I'm not comparing Tiffany jewelry to jc penny jewelry I'm talking about the same products. But I do agree I wouldn't shop there either lol
    jman005 likes this.
  5. Dweedlebug

    Dweedlebug Initiate (0) Feb 28, 2012 Pennsylvania

    Madame Rose, where I live = $30 for 750ml

    No thanks.
  6. scream

    scream Initiate (0) Dec 6, 2014 Wisconsin

    After I'm done at Tiffany's I'll stop in at F.A.O. Schwartz. Damn I have nothing left for beer ! :slight_frown:
    riverlen likes this.
  7. Ndfan1323

    Ndfan1323 Initiate (0) Jan 26, 2012 California

    Nothing left for the ride home!! Was just at FAO but was able to stop in a bar and have enough pesos for '13 & '14 bcs!!!!
    BrewDudeRay likes this.
  8. Immortale25

    Immortale25 Grand Pooh-Bah (3,477) May 13, 2011 North Carolina
    Pooh-Bah Trader

    But that beer is sooooooo freakin good. If you haven't had it before, you're missing out.
  9. mikepcarney

    mikepcarney Initiate (0) Oct 28, 2009 Ohio

    Don't like the price don't buy it. After awhile they'll take the hit and hint.
  10. hophugger

    hophugger Grand Pooh-Bah (3,268) Mar 5, 2014 Virginia

    I do realize that the cost of brewing and distributing craft beer is higher than the mainstream beers that are out there(BUD, Coors, etc.). I also realize that because of that, I do believe that some craft breweries take advantage of that and the prices are elevated. Also, please understand, that there is also a lot of inflated prices due to what the store is trying to make. I believe that at least 50% of the high prices is because of the outlet that is selling, not always because of the brewer. Compare prices at different retailers and you will see that. Example>>>4 pack(pints) of a great DIPA, Hoptopus from VA was almost $15 a Total Wine and I found it less than a mile up the street for$2 less. The biggest price differences are usually because e of the retailer's markout.....
  11. Dweedlebug

    Dweedlebug Initiate (0) Feb 28, 2012 Pennsylvania

    It's good, but I don't think it's that good. YMMV
  12. skunkpuddle

    skunkpuddle Initiate (0) Feb 14, 2011 California

    Love how people start with the price gouging argument. My bet is the OP gets pissed when he walks into the local 7/11. "Dammit you want me to pay 2 dollars for a couple of peanut butter cups!!" By the way for the non San diegans you can find Grapefruit Sculpin in our local 7/11's.
    ThePaleRider likes this.
  13. parrotsnest

    parrotsnest Initiate (0) Aug 16, 2010 Washington

    We absolutely do not have a free market. We have a "free-ish" market. The three-tier system, on top of other barriers to entry certainly distort the market, allowing stores and producers to jack up their prices higher than if we had a free-er marker.
  14. Jsmick

    Jsmick Initiate (0) Feb 20, 2013 New Hampshire

  15. spitshaded

    spitshaded Initiate (0) Nov 12, 2012 Virginia

    I stopped in a store in MD that was trying to sell FW XVII for $40 a bottle. When I heard the price I politely declined & was made to feel like I was cheap & that was a good price for the beer. I told him it was a little over $20 in VA he got a little hostile like I was lying to him & asked me to give him names of stores so he could drive down & buy it all to sell in his store. They had Stone collab bombers on a shelf behind the counter for around $20 a pop too.
    krustster, thegrimone and BH712 like this.
  16. parrotsnest

    parrotsnest Initiate (0) Aug 16, 2010 Washington

    I can't take these Beanie Baby prices anymore! :slight_frown:
    whiskey and Imacopyouidiot like this.
  17. pagriley

    pagriley Initiate (0) Oct 27, 2014 Illinois

    There is a store not far from me that breaks up zombie dust and sells it at $4 per bottle (so a $24 sixer). There is a store within a mile that sells single bottles for 2.50 and a grocery store that has it at $14 a sixer.

    Simple answer is shop around and find a store that is fair - the stock at the gouging store doesn't sit that long, so obviously some people are ok paying more. I guess if you really want it you have to pay, because at the correct price the cheaper stores sell out in an hour, rather than a few days at the gouge store.
    Valleyview06 and yemenmocha like this.
  18. SmashPants

    SmashPants Initiate (0) Jun 24, 2012 Australia

    That's what shopping around is for. Unfortunately for those companies / stores that charge way more than others, the old 'word of mouth' is so much easier on the web these days. If there is a store that charges too much, let us all know. Likewise, if there is a good retailer, let people know.

    My best advice for people in Australia is to order your beers from Leura Cellars. They are around the same price as other top-end beer retailers, but offer a 20% discount on any single beers when you purchase over 20 (I think). They also ship interstate, and it is actually cheaper for me to get stuff from Leura Cellars sent to me from NSW to QLD rather than buy at the local - and more expensive - craft beer stores.
    parrotsnest likes this.
  19. 5thOhio

    5thOhio Initiate (0) May 13, 2007 South Carolina

    Other than gas, what doesn't continue to rise in price?
    jmw likes this.
  20. OldRickSputin

    OldRickSputin Initiate (0) Jan 7, 2014 Illinois

    Go to any bar around here and you're paying $12-$16 for a 10 or 12oz BCBS. One bar in Chicago was/is selling 2014 Bourbon County Vanilla Rye for $65/22 oz bottle.

    So the stores figure, "shit we might as well do the same."
  21. Janeinma

    Janeinma Initiate (0) May 24, 2009 Massachusetts

    this year its 765 ml and I found a local store selling it for around $15, instant purchase of two bottles....
  22. nc41

    nc41 Initiate (0) Sep 25, 2008 North Carolina

    Wish it was so simple, but some guy will drop $35 on a BCBS 4 pk, so they won't get the message. I'm still as a loss why BCBS is so expensive in GI's own backyard, are the city taxes that high? That's right in their market, they should know the pricing structure.
  23. LiquidCourage

    LiquidCourage Initiate (0) Nov 1, 2012 Rhode Island

    Well the issue is supply. Do stores just charge $30 for vanilla and sell out in minutes or $65 and wait for someone who really wants?

    Honestly, there are many people on this site (me included) who would buy a Vanilla right now for $65 at a bottle shop. So if the store is going to get someone to pay for that, why not charge it? No one is entitled to Bourbon County or any beer.
    Liquor stores don't exist to subsidize our beer hobby, they exist to make money.

    Dont like the price, dont buy the beer.
    MNAle and pagriley like this.
  24. jefffalcone

    jefffalcone Initiate (0) Nov 9, 2013 Massachusetts

    Did you read his post or are you just responding to the title with an insult? He actually was just asking for an easy way to tell if the prices he sees are fair, and his question is in response to a brewery wanting to know if stores are gouging.
  25. larryarms847

    larryarms847 Initiate (0) Dec 12, 2010 Illinois

    Spot on. It's incredible how much the the price of beer can change so drastically from the fermenter, to the hands of the distributer, to store shelves. It's not the breweries jacking up the prices, it's specifically happens on the backend (i.e. distributors and stores).
    London_Gent, TWITA and bluehende like this.
  26. larryarms847

    larryarms847 Initiate (0) Dec 12, 2010 Illinois

    That is incorrect. As others already pointed out, the legally mandated three-tier system allows for both distributors and bottle shops to jack up prices exponentially over what it costs for the brewery to produce. This happens for a very simple reason, a three-tier system means that 3 separate entities are fighting to get their share of the pie. Regardless though, yes you need to be aware as a consumer.
    LostHighway likes this.
  27. Chaz

    Chaz Grand Pooh-Bah (3,532) Feb 3, 2002 Minnesota
    Pooh-Bah Society Trader

    "Do you mean to tell me that Craft Beer is not an essential human right? Balderdash!" (wink, wink)

    Likewise, along with the hobbyist-defined gouging I have also seen a great many more examples of 'the market correcting itself' in recent years, whereby brands and packages which had previously been considered difficult to obtain have become more easy to obtain and priced more in-line with other (seasonal, limited) items from the same brewery as more competition in the form of other products from other breweries have entered the marketplace.

    I'm not naming specific examples (and it varies from metro area to the next, of course), but think of the sheer variety of bourbon barrel-aged stouts now available on the market.
    riverlen and Ranbot like this.
  28. semibaked

    semibaked Pooh-Bah (1,885) Mar 27, 2007 Minnesota

  29. rozzom

    rozzom Pooh-Bah (2,534) Jan 22, 2011 New York
    Pooh-Bah Trader

    Much as I hate the term price-gouging being applied to beer, did anyone even attempt to answer the OP?

    OP I don't know of any central price database, but I'm sure some googling should allow you to find out MSRP or 'normal' pricing on a particular beer.
    Andrew041180 and jefffalcone like this.
  30. biermark

    biermark Crusader (483) Sep 9, 2008 South Carolina

    Maybe this is how Inbev plans to affect our market. Think of this like gasoline - one station goes up then the rest follow. GI, as a strategic purchase, sets the new bar and others follow.

    For me this is 2 strikes against GI; 1) too expensive for what it is 2) Inbev
  31. rgordon

    rgordon Pooh-Bah (2,605) Apr 26, 2012 North Carolina

    True enough in theory. But believe it or not distribution is more art than raw business. To diminish the hard work of the very good distributors to merely being a tool of the antiquated 3-tier system is a mistake. Shipping anything is expensive and very complicated. I'd love to see a "wide" open system and the added expense and mayhem that would follow- most yahoos would beg for the old days. The big beer companies love the 3-tier system and franchise laws, but the enterprising and beer loving smaller companies- while having to adhere to "the rules"- do not "jack up" prices unfairly and are your friends, not your enemy! Getting stuff places is very hard work, trust me.
    LambicPentameter and mudbug like this.
  32. bluehende

    bluehende Initiate (0) Dec 10, 2010 Delaware

    I think this is what gets my goat the most. The guy who actually makes the beer gets peanuts. Now the guys that just hand it to some one else makes a lot of money. It seems that the art of the deal is more rewarded than actually producing the product. I would guess a good majority on here would have no problem with the brewer making more. We do get on our high horse a bit when retailers and distributors jack prices up.
    larryarms847 likes this.
  33. Jsmick

    Jsmick Initiate (0) Feb 20, 2013 New Hampshire

    Retail is $250.
    JScoot likes this.
  34. AleHunter805

    AleHunter805 Initiate (0) Mar 14, 2014 California

    Firestone Walker is currently selling the XVII for $50 at the brewery. The price on the XIV is $110. :grimacing:
  35. mjc3151

    mjc3151 Initiate (0) Apr 8, 2011 Illinois

    It's called inflation.
  36. semibaked

    semibaked Pooh-Bah (1,885) Mar 27, 2007 Minnesota

    Yes i know the retail is around $250.00, but again i didn't see any gouging on that site.
  37. indurTheB

    indurTheB Initiate (0) Oct 29, 2013 Florida

    Sadly I have to agree with the others... can't really call it "gouging" on non-essential products. They are charging that much because there are people paying it.
    Jsmick and semibaked like this.
  38. bluehende

    bluehende Initiate (0) Dec 10, 2010 Delaware

    Inflation has risen prices 4.5% over the last 3 yrs. The price for beer in my area has gone up about 25%. So inflation is not the reason for the large increase in beer prices. The boom in craft beer drinkers and their willingness to pay higher prices is the reason. It will not stop until the consumer pushes back. If you want the good stuff we will either have to pony up or as a group step away. I have chosen to let others have the high priced stuff and I will use my dollars for slightly less "quality" at a bargain price.
    larryarms847 likes this.
  39. jesskidden

    jesskidden Pooh-Bah (2,969) Aug 10, 2005 New Jersey
    Pooh-Bah Society Trader

    You really think that distributors don't spend money on shipping the beer from the brewery to their warehouse, storing that beer (some under refrigeration) until delivery, running a fleet of trucks and employing people to sell and deliver the beer? Distributor also usually are responsible for paying the state excise tax on beer (particularly on out-of-state beer). And in most cases, by contract, the cost of pulling out of code beer from the shelves and destroying it is borne by the distributor.

    And doing it all cheaper than the brewers could do it themselves in most cases - if the fact that most breweries, even in states that allow self-distribution, eventually sign with wholesalers to distribute at least some of their in-state beer, is any indication.
  40. dennis3951

    dennis3951 Initiate (0) Mar 6, 2008 New Jersey

    The only people who "jack up " craft beer prices are craft beer drinkers who are willing to pay them.
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