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p_elliott
03-27-2012, 08:13
I guess this question is more pointed at Chuck or John but do the distilleries make any money on the minis or is it just more for advertising? My guess would be that they lose money on them and it just a way of advertising their brands like through the airlines and such.

StraightNoChaser
03-27-2012, 08:27
I guess it really depends on if the packaging and shipping of minis costs exorbitantly more than a typical 750ml bottle. For instance, a 750 of Jack costs about $20. A 50ml costs $2. To obtain the same volume of whiskey, one would have to buy 15 minis, or $30 worth. Granted, that doesn't reflect what the distillery actually sells that whiskey to the distributor for so it might be tough to answer without knowing intimate details about supplier pricing and costs of packaging.

I'm sure some companies make a killing on minis. Grey Goose is a great example. A 750ml costs $25 but the 50ml costs $5. Hard to say anyone is losing money when you can sell 750ml for $75 :skep:

StraightNoChaser
03-27-2012, 08:28
Hard to lose money on a $25 750ml of vodka too I guess :lol:

p_elliott
03-27-2012, 09:01
Some places sell minis for a buck or 2 I know if I buy the an empty mini bottle from a bottle company they cost about $0.50 a piece.

StraightNoChaser
03-27-2012, 09:42
But what if you ordered 1,000,000 of them? You wouldn't still be paying $.50/bottle

p_elliott
03-27-2012, 10:04
True but addition cost for filling them for what finanicial gain ? You have to have special equipment to fill them and hand sealling the bottles.

ThomasH
03-27-2012, 10:41
A lot of times, when a new brand comes out, they put minis out real cheap to get people to try the product. They probably lose money but normally, they make good money as the cost per drink is quite a bit higher with minis!

Thomas

JayMonster
03-27-2012, 13:14
But what if you ordered 1,000,000 of them? You wouldn't still be paying $.50/bottle

Exactly. I have gotten bottles like those with custom labels filled with color water (promo giveaways) for as little as. 05 each, and that is only on lots of a thousand units and I am sure rheir printing and bottle costs are much lower because of the scale.

Jwilly019
03-27-2012, 14:11
Not bourbon, but I picked up 2 minis of Macallan 18 for $9 each. Considering state minimum for a 750mL in Michigan (where I purchased the minis) is $160, I think I did alright.

Flyfish
03-27-2012, 14:28
In Bourbon, Straight the redoubtable (undoubtable?) Chuck Cowdery points out that bourbon was not originally sold in bottles because the bottle would have cost more to produce than its contents. Then automatic bottle making reduced the cost of bottles. It seems to me that you can't compare the price of bourbon in a mini with an equivalent amount in a 750 ml bottle. In the case of the mini, the bottle and the label represent a far higher percentage of the total cost.
I do some simple math when considering a purchase of bourbon in a handle: Multiply the 750 ml price by 2.3. It is easy to convince myself that I am getting a bargain with a handle. A mini is a good way to sample a bourbon but it rarely represents a price break.

Brisko
03-28-2012, 07:11
In Bourbon, Straight the redoubtable (undoubtable?) Chuck Cowdery points out that bourbon was not originally sold in bottles because the bottle would have cost more to produce than its contents. Then automatic bottle making reduced the cost of bottles. It seems to me that you can't compare the price of bourbon in a mini with an equivalent amount in a 750 ml bottle. In the case of the mini, the bottle and the label represent a far higher percentage of the total cost.
I do some simple math when considering a purchase of bourbon in a handle: Multiply the 750 ml price by 2.3. It is easy to convince myself that I am getting a bargain with a handle. A mini is a good way to sample a bourbon but it rarely represents a price break.

Actually, I usually see handles at slightly less than twice the price of the 750s. I always figured if I'm buying a handle I should be getting a volume discount. I won't pay more than twice the price of a 750.

With minis, there are a couple stores that I frequent that usually have a $.99 basket and that's a pretty good deal assuming the product is more than $15 for a fifth. Also a good way to satisfy a craving for rum, brandy, or tequila without taking up more shelf space at home.

pfiest
03-28-2012, 08:41
I think flyfish was saying, as long as the handle is less than 2.3 times the price of the 750 ml, he is getting a volume discount since 1.75/.75=2.33.

Flyfish
03-29-2012, 10:02
Pfiest, thanks for the clarification of my point about the price of handles.
Now, I'd like to clarify--or further muddy--another point. I said that minis are a good way to sample without buying a whole bottle. Actually, that contradicts my own experience. Often it takes me a third to a half bottle to come to grips with a bourbon I have not tried before. A few years back, I bought a sample pack of the Beam small batch collection. Was not much impressed by the Baker's or Booker's. Boy was that wrong!