Rare beers retail: How to price?

Discussion in 'Great Lakes' started by UncleLankyFrank, Sep 11, 2014.

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  1. UncleLankyFrank

    UncleLankyFrank Initiate (0) Sep 11, 2014 Minnesota

    Disclaimer: I am not advertising for the store and will not list the name here.

    I work at a liquor store in Minnesota where they've squirreled away several bottles from each release of Surly Darkness, Smoke, #'s and Pentagram since 2009. The problem is how to put a retail price on these (for sale IN STORE ONLY). Is there any website or app that lists retail sales of cellared whales?
     
  2. JMN44

    JMN44 Pundit (809) Sep 19, 2013 Minnesota

    I think it depends on the stores goal with these bottles. Does the store want to reward and surprise its customers and make them happy/loyal or does it want to price each Surly bottle as high as possible to make the most money?
     
  3. DBijnagte

    DBijnagte Initiate (0) Dec 7, 2012 Minnesota

    For a bottle I usually expect up to a 10-20% mark up per year cellared as a storage fee. I always love when a place has no mark up :slight_smile:
     
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  4. EJJ1848

    EJJ1848 Initiate (0) Jun 24, 2013 Minnesota

    Might not be a bad idea to contact surly. Not sure what they'd say

    As far as alternate websites, those are usually egregiously over-priced, and would most likely piss a lot of people off
     
  5. JMN44

    JMN44 Pundit (809) Sep 19, 2013 Minnesota

    Were these bottles cellared properly in the dark between 55-60 degrees or kept near a receiving dock where the temps ranged from 20 to 90 degrees?

    If not cellared, you may really piss off some customers (& get bad PR) if you charge extra $ and the bottles are bad.
     
  6. UncleLankyFrank

    UncleLankyFrank Initiate (0) Sep 11, 2014 Minnesota

    Good question! Generally, we try to keep sales of rare releases to local/regular customers. We don't cater to lurkers or truck chasers, and I've seen the owner downright fib about whether we have something if he doesn't recognize the guy asking.

    On the other hand, I'm sure they'd like to make a decent profit for having held onto them for this long. Problem is, since cash transactions mostly happen on the black market, it's tough to tell what a "fair" retail price would be. I don't imagine anything ever selling for what people ask on Craigslist or eBay.

    They've been kept in the original case at a constant temp of about 50 degrees.
     
  7. Tyecko

    Tyecko Initiate (0) Mar 19, 2014 Minnesota

    I would go with the 10-20% markup per year, seems like a fair value for the time and space spent to cellar
     
  8. atrocity

    atrocity Pooh-Bah (2,264) Dec 18, 2013 Virginia
    Pooh-Bah Trader

    Agreed. Costs money to have storage space and proper temperature control to age that stuff.
     
  9. MNPikey

    MNPikey Pooh-Bah (1,693) Feb 27, 2011 Minnesota
    Pooh-Bah Trader

    In recent years Brooklyn Center Liquor has sold verticals and cellared bottles and usually price like this:

    2014 $20
    2013 $30
    2012 $40
    2011 $50
     
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  10. Douggo

    Douggo Initiate (0) Oct 24, 2009 Minnesota

    One million dollars.
     
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  11. UncleLankyFrank

    UncleLankyFrank Initiate (0) Sep 11, 2014 Minnesota

    That also seems roughly in line with the % per year scale. Thanks for the input, everybody. I'm not sure they even mean to sell what they've cellared, and we keep finding stuff in and under stacks of cases. I recently found a 2012 pack of Founder's Porter! Braised a pot of pork necks in half and drank the other while cooking. Amazing!
     
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  12. brewnic

    brewnic Zealot (648) Oct 7, 2010 Minnesota
    Trader

    From a business side this you’re best feedback is going to be from the local/regulars that come in. My suggestion is that you ask a general question around thought around prices of cellared beer and their interest in picking up some out of production bottles.

    Also you know the %markup from your other products, turn over, and amount of customers that fit in your ones that you want to get in the door.

    Are you going to tie it with other promotions? Where you might not mark up these beers as much but hope that foot traffic purchases $. What do your distributers have to say? They should know who else may be in the same position and what

    I think asking this on BA is a little of a loaded question unless you are looking to get top dollar out of these bottles. In that case you should ask MGM and Surdyk's :wink:.
     
  13. SlightlyGrey

    SlightlyGrey Maven (1,480) Apr 4, 2011 Minnesota
    Trader

    Zipps and Blue Max have regular cellar sales, they would be ones that I would check with.
     
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  14. nograz

    nograz Maven (1,424) Oct 30, 2013 Minnesota
    Trader

    I would price the Surly Darkness 09 - 13 for a KBBS.
     
  15. lonewolfcry

    lonewolfcry Pooh-Bah (1,994) Dec 7, 2007 Minnesota
    Pooh-Bah Trader

    Won't sell you good beer unless he knows you....hmmm.
    Now I see why he has so many in the cellar.

    Question is; will he sell a five year old, $50 bottle to a stranger?
    I suspect he will.
     
  16. SNReject

    SNReject Initiate (0) Jun 26, 2012 Minnesota

    Every beer you listed, with the exception of Darkness and Five, should be discounted. Discount 20% per year for Smoke.
     
  17. jjohnston884

    jjohnston884 Initiate (0) Feb 22, 2007 Iowa

    Five is drinking so good right now. I'd probably drop fifty for another
     
  18. zeledonia

    zeledonia Pooh-Bah (1,899) Nov 23, 2008 Washington
    Pooh-Bah

    I completely disagree on Smoke. I find it gets way better with age, as the overpowering smoke flavors relax and it becomes much more balanced. At 2-3 years, it's delicious. But then, I don't love beers with overpowering smoke.

    And BTW, Five is drinking fantastic right now. I just drank my last bottle last week, and I wish I had many more.
     
  19. evilcatfish

    evilcatfish Pooh-Bah (2,116) May 11, 2012 Missouri
    Pooh-Bah Trader

    How about a charity raffle for the bottles? $5 a ticket and donate all proceeds to a local cause or something? Could raise a lot of money and maybe a tax write off for the store? Just an idea
     
  20. Hopsiam14

    Hopsiam14 Initiate (0) Jan 23, 2013 Minnesota

    This is exactly the question to ask. I think if a store wants to surprise and delight a few people with these bottles at no or minimal mark up, that can be a good strategy. Frankly unless you're sitting on a lot of these bottles then I'm not sure what you'll really getting out of marking up the significantly, other than some frustrated BAs and a new negative thread here.

    Personally my opinion is that there is a bigger opportunity to make a bigger splash with the bottles by doing this in a way that excites people, creates loyalty and perhaps draws in a few new customers.
     
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