Therese one born every minute

as PT Barnum used to say and there are many in the wine industry that are waiting for them to fall into their lap. Let me preface this article by stating that Bert was extremely unhappy over the concept of this journal and he did not want me to write it because he didn’t want to be seen as bagging or slagging the opposition. Just a reminder, I am completely independent, I am not paid for my wine work, and my opinions are entirely my own. (All prices quoted are current/recent real life examples.) Explanation over - back to the story.

For those of you that shop regularly the chances are you know what a loaf of bread costs, the price of a pint of milk and possibly even the dog food and that’s because these are staple purchases you buy on a regular basis. But do you know the price of a box of Lindt Chocolates Connoisseur Collection that your purchase occasionally? Chances are you don’t. And it’s the same for most people with wine.

The people who purchase say Rosemount Split Label or Jacobs Creek on a reasonably regular basis will know what it normally costs them so these wines are fairly price sensitive and retailers have to be carefully to price them close to the mark or loose sales. Likewise when they are having a genuine sale the retailer can look forward to moving a vastly increased volume. But what happens when these same buyers need to buy a special bottle of wine and walk into a bottle shop? They see a bewildering array and in most cases have no idea of the real value of most of them.

Let’s assume they go for Balmoral because they realise that it is Rosemount’s top label but they don’t know what its worth. They pay over their $67.49 not knowing that they can get it from as low as $47.95. This exact same scenario occurs when a regular cask wine drinker goes and buys a bottle of Leasingham Bin 61 which can be had from $16.99 to $21.99. It’s not at all uncommon for wines prices to vary by as much as 30% or even more (on occasional up to 40%) for commonly available wine.

Yesterday I walked into a local bottle shop and they have the 97 Michael for $74.99 despite the fact it’s a lousy vintage. Most shops had trouble moving it, many shops recently had it on special for less than $50 so in this case we have a 50% difference for a wine that is hard to move! Also, another local store has 95 Grange at $395 a bottle (when others have it at $299) yet given enough time these will sell at the higher prices. More on that later.

There is one “trick” that you should not fall for when it comes to wine prices and that’s when retailers quote a high “RRP.” For example, one retailer is advertising Leasingham Bin 61 as reduced from $24.48 to $16.99. There is no argument that the $16.99 is a good price but the RRP of $24.48 makes it sound like it’s a 30% discount when in reality the street price is $16.99 to $19.99 so the saving is closer to 15% on the average street price.

Another trick to watch out for is the 20% off everything in the store specials that some retailers run. Yes, there are a few good deals to be found here sometimes but one has to know prices to take advantage of this situation. In many instances their normal price is far higher than some competitors so even with the 20% off, you may be able to find the wine you want for less elsewhere. It’s also not unusual for some wines to disappear (out the back) when these sales are on too.

You are also not immune when dealing with wine clubs or societies. Recently a wine club offered a saving of $120 on a case of Petaluma Merlot which it was selling for $708 or $59 a bottle. It could be sourced from others for as little as $480 a case or $40 a bottle. (I notice since this was highlighted elsewhere the “saving” of $120 is no longer mentioned.)

The following are a few simple tips to help you move through the mine field of wine pricing.

1. Know what the wine is actually worth before buying it
2. The chances of getting the best deal on the more expensive and harder to obtain wines are straight after release when there is the greatest stock availability.
3. Build a relationship with one or two retailers who will look after you, give you good service and who have a good range at reasonable prices.

Finally, getting back to the example of the way overpriced Grange and Michael which will eventually sell, it begs the question, are the retailers really stupid for pricing these wines at high levels? Obviously they and PT Barnum don’t think so.

Cheers

Ric