How do winemakers determine what to charge for wine?!
My husband and I love a good bottle of Cabernet Sauvignon or Merlot!. We find some pretty decent prices at Safeway and an Outlet store!. It makes me wonder how the winemakers decide what to charge for their wine and how do outlet stores determine how much to discount the original price when they put the bottles in THEIR store!? This is a loaded question I know but maybe someone knows!?Www@FoodAQ@Com
Answers:
Most liquor stores, or in your case, convenient/outlet stores put a 50% mark up on wines!. So if you pay $10 a bottle, it only cost the business $5 to bring it in!. So, when it comes down to it, most wineries really only want to cover the cost plus maybe a little more for profits!.
Although, the expensive bottles of wine are based on proper storage techniques and timelines!. There is a bottle of wine in the liquor store where I work made by Joseph Phelps called "Insignia"!. 30 years ago, the bottle was sold for about $15, but after the winery began to age their product, they found it was much better!. Now, it costs $200 for a bottle, but if you opened it right away, it would be worth that initial $15 and a waste of money!.Www@FoodAQ@Com
Although, the expensive bottles of wine are based on proper storage techniques and timelines!. There is a bottle of wine in the liquor store where I work made by Joseph Phelps called "Insignia"!. 30 years ago, the bottle was sold for about $15, but after the winery began to age their product, they found it was much better!. Now, it costs $200 for a bottle, but if you opened it right away, it would be worth that initial $15 and a waste of money!.Www@FoodAQ@Com
The long technical answer!.
http://en!.wikipedia!.org/wiki/Price
I figure the company has calculated the cost of raw materials, labor-the big one, and overhead!. In this is included the cost of maintenance harvesting the vineyard/grapes, the energy costs of machinery, bottles & labels, and of course everyones pay check!. Add to this the shipping & marketing and advertisement costs!. They the n have a profit percentage to calculate into the mess!. From all this the can divide by how much product they have and come up with a per case/pallet price!.
this all = $$
Restaurants and retail often increase the purchase price by 1/3 to 1!.5!.Www@FoodAQ@Com
http://en!.wikipedia!.org/wiki/Price
I figure the company has calculated the cost of raw materials, labor-the big one, and overhead!. In this is included the cost of maintenance harvesting the vineyard/grapes, the energy costs of machinery, bottles & labels, and of course everyones pay check!. Add to this the shipping & marketing and advertisement costs!. They the n have a profit percentage to calculate into the mess!. From all this the can divide by how much product they have and come up with a per case/pallet price!.
this all = $$
Restaurants and retail often increase the purchase price by 1/3 to 1!.5!.Www@FoodAQ@Com
It depends on how much they spent for everything in it and how rare it is lets say I am selling a wine with a rare kind of grape in it and it costs me 12$ I would probably charge 38$ for it!.Www@FoodAQ@Com
They wait until the customer is drunk to tell them the price!.Www@FoodAQ@Com
