Price v. Distance

Discussion in 'Beer Talk' started by Sneers, Sep 23, 2012.

Thread Status:
Not open for further replies.
  1. Sneers

    Sneers Initiate (0) Dec 27, 2009 Pennsylvania

    Occasionally I'll see someone on here posit that the reason why a certain beer is so expensive for them is because they live far from the brewer of said beer. Conversely, some have said that the low price for which they can buy a beer is related to how close they are to the brewery.

    While there is a sort of common sense logic to it, I find myself doubting a significant correlation between the two. Does anyone non-anecdotal evidence on this?
     
  2. dennis3951

    dennis3951 Initiate (0) Mar 6, 2008 New Jersey

    Last year when i was in north CA i paid more for SNPA than i do in NJ.
     
  3. Homebrew42

    Homebrew42 Initiate (0) Dec 20, 2006 New York

    Overall you're not going to find much correlation between price and distance from the brewery, price has more to do with local supply and demand than anything else.
     
  4. yemenmocha

    yemenmocha Grand Pooh-Bah (4,116) Jun 18, 2002 Arizona
    Pooh-Bah

    Sam Adams Boston Lager is usually cheaper in AZ than in Boston.

    Taxes & how much the middle man marks up are the key differences, not shipping.
     
    chefkevlar and gatornation like this.
  5. ChadQuest

    ChadQuest Initiate (0) Mar 4, 2009 Illinois

    Most times beer is more expensive at the actual brewery, so they don't compete with their retailers.
     
    BBThunderbolt likes this.
  6. VncentLIFE

    VncentLIFE Initiate (0) Feb 16, 2011 North Carolina

    which I think is crap. Thats no incentive to visit the brewery. If I can buy their beer cheaper elsewhere, ill go elsewhere. Fullsteam here in Durham sells their beer cheaper than anywhere Ive seen at regular price.

    I refuse to fill a growler at Great Lakes. Anything worthy of a growler is around $20. Seriously? one off growlers down here are like $15 at the brewery. Just seems like im getting screwed for visiting the brewery and covering their shipping cost myself.
     
    Bitterbill likes this.
  7. 5thOhio

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

    Sierra Nevada is one of the cheaper craft beers here in SC, as is Sam Adams, Stoudts, and Lagunitas --- we're talking their regular releases, of course.

    I think it has more to do with the specifics of a brewery's financial situation, e.g. scale of brewing, overhead, price points yadayadayada.
     
  8. kzoobrew

    kzoobrew Initiate (0) May 8, 2006 Michigan

    I live less than 45 minutes away from Founders, less than 5 minutes from Bell's and it is not uncommon at all to see people several states away paying less for these beers than I am.

    Individual distributors and retailers play a much larger roll than any other factor. The wholesale price from a brewery to a distributor is usually pretty set and pretty standard.
     
    5thOhio likes this.
  9. Bitterbill

    Bitterbill Grand High Pooh-Bah (7,036) Sep 14, 2002 Wyoming
    BA4LYFE Society Pooh-Bah

    I liked this post but...if I go to a brewery, I'm going to check out brews that aren't packaged and can be sold in stores. To me, it doesn't make any sense to go to a brewery and get something widely available...
     
  10. VncentLIFE

    VncentLIFE Initiate (0) Feb 16, 2011 North Carolina

    and I never do. But I also dont believe that it costs $20-$25 for a growler of non-distributed stuff from a brewery the size of Great Lakes when I can get something of the same quality for around $15 here in Durham. hell the smaller brewery even barrel aged and Great Lakes wasnt.

    cost should always be cheaper at the brewery. They dont have to pay to distribute it.
     
  11. Bitterbill

    Bitterbill Grand High Pooh-Bah (7,036) Sep 14, 2002 Wyoming
    BA4LYFE Society Pooh-Bah

    Sorry, I've never come across $20 to $25 Growlers at any of the breweries I've visited and at price, it would have to be something really special for me to fork out that amount of money. I've done it for 750s so a Growler wouldn't be out of the question. And yeah, I guess the best prices should be at the brewery itself, in a perfect world.
     
  12. woosterbill

    woosterbill Pooh-Bah (2,807) Apr 6, 2009 Kentucky
    Pooh-Bah

    You missed the whole "so they don't compete with their retailers" aspect of it. Yes, it's a disincentive for visiting the brewery, but (especially for a brewery the size of Great Lakes) only a minuscule percentage of their total sales can even possibly happen at the brewery itself. They are 99% producer, 1% (maybe) retailer. As such, they depend on their retailers for the vast majority of their revenue, and therefore don't want to upset anyone by undercutting prices and essentially acting as competition.

    Yes, it's annoying to know that the brewery is charging you way more than they must be charging their distributors, but guess what? You, an individual consumer, don't buy quite as much beer as a distributor does. Bulk discounts and all that. If you absolutely want the cheapest price possible, simply visit a beer store in addition to taking the brewery tour.
     
    bozodogbreath likes this.
  13. mudbug

    mudbug Pooh-Bah (1,762) Mar 27, 2009 Oregon
    Pooh-Bah

    Rogue here in Newport has occasional back-door sales where you can pick up cases for half price or better (mislabeled stuff and such) And their draft pours at the brewery and public house are on par with everything else.
     
  14. woosterbill

    woosterbill Pooh-Bah (2,807) Apr 6, 2009 Kentucky
    Pooh-Bah

    Within the US it does seem that taxes and markups affect price more than shipping distance alone. That said, my understanding is that Russian River -tions are about $12 in NorCal and more like $18 in Philly.

    You can really see the difference internationally, though. A 375ml bottle of 3 Fonteinen Oude Geuze costs less than $5 at the brewery, and will generally be at least double that stateside. Same for pretty much every Belgian beer I can think of.
     
  15. VncentLIFE

    VncentLIFE Initiate (0) Feb 16, 2011 North Carolina

    I do quite often, but when I go to the brewery, I would much rather grab hoppy beers there since theyre usually fresher. but at $25 for a double IPA? thats $6 a pint without a huge tip, glasses, cleaning, transportation, and marketing. Just seems like im being screwed. I get the economic part, but it sucks.
     
  16. woosterbill

    woosterbill Pooh-Bah (2,807) Apr 6, 2009 Kentucky
    Pooh-Bah

    Oh, I'll entirely agree with you that $25 for a growler of a DIPA is an absolute ripoff, and I'm in no way defending that specific pricing decision.

    To use a different analogy, my local brewery (NEBCO) sells growlers of their DIPA, Gandhi-Bot, for $15 - $.234/ounce. The same beer retails for an MSRP or $11/4-pack of 12oz cans - $.229/ounce.

    Despite not having to pay for shipping, packaging, or wholesaler/retailer markups, the price is still slightly higher at the brewery. Why? Not because they're out to screw their customers, but because they don't want to screw their retailers. This doesn't strike me as unfair in the least, but of course I'd disagree if they were asking for an extra $10/growler...
     
  17. JimDH

    JimDH Crusader (428) Feb 7, 2011 Kentucky

    A few people here said taxes affect the prices in different regions, and that's part of it--taxes on all aspects of distribution and retailing. Also those of you in high-cost-of-living areas are paying a premium based upon the cost of floor space and labor.
     
  18. ChadQuest

    ChadQuest Initiate (0) Mar 4, 2009 Illinois

    Breweries do not grow and prosper because of how much they sell in house, they do so because of everyone selling their beer for them.

    I assume you do not work in any sort of retail environment?

    Incentive to visit a brewery should be unique offerings, not cheap core lineup.
     
  19. Beerista

    Beerista Initiate (0) Sep 11, 2012 Massachusetts

    As usual, all we have is anecdotal evedence. It pisses me off that a six-pack of Sam Adams Boston Lager is a dollar less in Washington State than it is here in Boston.
     
  20. VncentLIFE

    VncentLIFE Initiate (0) Feb 16, 2011 North Carolina

    no i do not.
     
Thread Status:
Not open for further replies.