Sculpin price drop

I've always found Sculpin to be overpriced. Check the date though, might be old.
I got burned on some 4 month old two hearted the other day, my own damn fault.

 

Wow, someone actually educated about the industry. I see so many bizarre attributions to distributors/suppliers/retailers on this site that it makes my head spin.

 

I think I understand your point with regard to a regular pricing strategy by the brewery but in my experience distributors and retailers don't always feel themselves constrained by the brewery's pricing strategy. Unless compelled to be by law.

For example, a couple of years ago Brooklyn Brewing moved their Black Chocolate Stout from 6 packs to 4 packs *without* changing the price of the case of beer to their distributors. However there were a number of retailers in several states who priced those 4 packs at basically what they had been charging the year before for 6 packs. (It was widely discussed in a thread on this site.)

As a different example, I have in my basement what is left of a case of beer in 750 ml bottles purchased here in PA about a year ago from a particular retail location. That case of beer was purchased for a sale price of $60. Two days later in two other different retail locations I visited I saw cases of that very same beer that were priced at approximately $100 dolllars. I visit this same retailer where I bought the case about once every month or so. Every time I walk in the front door they have stacks of a variety of different cases of beer clearly marked down (usually out of code and probably priced at their cost).

Hence my replies to the OP.

 

This

This is true of my experience as well.

 

The example of Brooklyn Brewing moving from 4 to 6 packs without changing price (or distributor changing list) is the oldest trick in the book. Mars corp was the trend starter as COGS on their chocolate bars escalated while retailers held firm on margins and consumers demanded $.99. If you had a standard Snickers bar from the last 15 years you would be amazed by how many different changes in size there has been in order to take price, without "taking price."

Jack Daniels lowered their proof twice in the 90s completely under the radar without benefit to consumers or reduction in price. It may have been done to curb increasing costs of corn or perhaps to merely squeeze additional shareholder value. Pricing is the lifeblood of CPGs, nothing is done unintentionally or without benefit to the supplier. My guess is that Brookyln Brewing switched to the new pack size to mitigate backlash of a price increase or "new tag". Veterans like you would notice the difference but the masses most likely wouldn't when the beer they bought before is the same price.

Suppliers have a list price and a set of discounts based on volume requirements. Many retailers (especially non-chain) don't have the cash flow to buy large quantity discounts yet they demand 45%+ margins. Chains, Clubs, TJ's will run lean when products are on ad or feature. There will always be differences in price across channels and accounts, much like you see with Toilet Paper, Cheese its, Cereal, etc...

Once a product hits the disco bin it generally means the supplier has kicked in for a Floor Stock Adjustment. This is done to restore confidence in the product line and partnership, and to entice new buys or lower prices going forward. There may even be buyback clauses in the agreements. Retailers aren't in the business of reducing prices at their own expense..

 

Sculpin bombers and 6-packs went down in price to retailers in my area about a month ago.

 

Yes, or they could be benefitting from economies of scale with increased production.

I'm happy with a lower price too, so long as availability stays the same. When it first hit my state I went to the store to buy it and a high percentage of the time I had to come home with something else because they were sold out AGAIN.

 

I believe it's still $16.99 here, it would have to gt down to 2H Ale or Modus territory before I'd even consider it. Even then...

 

But Brooklyn Brewing made absolutely no changes in the product other than moving from a 4 pack to a 6 pack. So the Mars and Jack Daniels illustrations, which were across the board thinly disguised price increases are clearly different. Case prices in PA did not change to the consumer. They did not change in other states to the distributors. So lots of us got the same product before and after with no pricing change. But some retailers charged their customers more per bottle.

 

oh.. Above you stated it was 6 pack to a 4 pack

The reverse case could be several things. It could be that Brooklyn was incompetent and never changed their pricing in their billing system, nor the distributor their list price. It could be Brooklyn has been shipping at a new higher FOB and the distributor has not changed their list and will eventually notice the margin dilution. It could also be that Brooklyn ran a Break Even and the expected lift would be greater than the incremental cost. I've learned never to overestimate the competence of small suppliers.

Suppliers and distributors can't dictate price, but the rule of thumb is retailers, especially small independents, will get theirs and maximize margin any way they can. Case in point, many spirits company do a Value Added Pack program called a hitchhiker where a small size bottle is be attached to a 750ml or 1.75ltr larger format. The hitchhiker can be a 50ml mini bottle all the way up to a 375ml. Many small independents simply break the hitchhiker off and sell it at full price rather than pass the concept and value of the free bottle to the customer. You don't have these issues in national chains.

Three tier systems present challenges, in the world of alcohol independent stores matter as it's a larger percent of business than other consumer goods. Just think about how many liquor stores there are and new bottle shops. Not being able to work directly with the retailers or policing leads to more variable pricing...

 

The second was an error, changed devices. The change made by Brooklyn was 6 packs to 4 packs. Apologies.

BTW, in PA liquor is sold only in State Stores. Beer is sold only by the bottle in "eateries" and most beer is sold by the case in stores that sell only cases of beer.

 

Correction, should read, moving from 6 packs to 4 packs.

 

I would also like to ask, is there any practical reason why Sculpin is so expensive even compared to Big Eye? Did they use 3x the hops or malts or something like that? I assume there is at least one practical reason for the significant price difference.

 

Sculpin is 14.99 and Big Eye is 9.99 and I like both but I can't justify the extra five for Sculpin, am I missing something?

 

Economics 101 - We have the same beer in the same bottle but with a different label. Depending on how many of the old labels were hanging around, why would they lower the price just to use the labels? I can't imagine that 6 labels cost more than the amount the were price was decreasing. The OP said he noticed a drop of $2 - $3 a sixpack, so if a sixpack of labels cost more than that, yes it would be worth it to drop the price of the beer and keep the labels. Otherwise, trash the labels and sell the same beer in the same bottle with a different label for the regular price, right?

 

Economics 101 - We have the same beer in the same bottle but with a different label. Depending on how many of the old labels were hanging around, why would they lower the price just to use the labels? I can't imagine that 6 labels cost more than the amount the were price was decreasing. The OP said he noticed a drop of $2 - $3 a sixpack, so if a sixpack of labels cost more than that, yes it would be worth it to drop the price of the beer and keep the labels. Otherwise, trash the labels and sell the same beer in the same bottle with a different label for the regular price, right?

 

The price appears to be the same in Philly, but that doesnt really mean anything outside of the city. I think the last bottle of Sculpin I bought was a 22oz like 2+ years ago in NJ. I'll have it on draft but I'm not paying $15+ for a sixer of any year round IPA.

 

Interestingly enough, the bombers are still $9.99 here even though the 6 pack is $13.99.

Happy to have the six packs around.

 

Ahh Sculpin...better than your average ipa, not quite a double. Wouldn't take West Coast over Sculpin....and regularly pick Sculpin over Union Jack when on tap

Then there's Habanero Sculpin...kinda grabs you by the boo boo. 6 Sculpins>1 Bruery

Haven't noticed the price drop