Maker's Sales Growth

[squire]

Good link, thanks gg.

[suntour]

I've been thinking about Maker's and Beam all day so I poured myself a side-by-side of White Label and Maker's.

What's interesting about them side-by-side is that they are very different but I could easily consider them both "rough" in different ways. Kind of hard to believe Maker's is still considered premium, under that molasses/fudge note you really get the crushed bone funk of young, hot bourbon. They've worked hard to let us know that age isn't everything, unfortunately it is a definite something. Jim Beam is astonishingly overpriced for how not good it is, kind of hard to not feel the same way for Maker's.

In this same side-by-side I found modern Old Taylor to be significantly more well-rounded. I think I spent like $8 on the fifth.

[squire]

Makes you wonder just how much of a brand is image even to us who know better.

[theglobalguy]

Makes you wonder just how much of a brand is image even to us who know better.

Forgive my lack of solid data, but age aside (assuming taxes accrue as the years pile on) the actual raw ingredients cost about the same across the cost spectrum. So a fancier bottle and label adds a few bucks, the rest of the cost difference on the younger products is pure marketing cost?

[HighInTheMtns]

More age also means more angel's share.

[theglobalguy]

More age also means more angel's share.

No I get why older = higher price. Was commenting more that two bourbons of equal age, from same distiller, any large price differences between the two come down to marketing and not cost of goods.

[HighInTheMtns]

No I get why older = higher price. Was commenting more that two bourbons of equal age, from same distiller, any large price differences between the two come down to marketing and not cost of goods.

Ah, got it... Yeah, see Jack Daniel's for a prime example.

[squire]

So a fancier bottle and label adds a few bucks, the rest of the cost difference on the younger products is pure marketing cost?

More like pure profit.

[cowdery]

Folks will understand business much better if they put out of their minds this idea that price is driven by cost. It simply is not and you'll never understand pricing if you persist in trying to relate it to cost. If you think that at least a price will always be more than the sum of the costs, even that is wrong. Businesses sometimes do, for a variety of reasons, sell products below cost.

The overriding consideration when companies set prices is an evaluation of what the market will bear. The highest amount customers in sufficient numbers will likely pay will be the price.

[TunnelTiger]

Businesses sometimes do, for a variety of reasons, sell products below cost.

The overriding consideration when companies set prices is an evaluation of what the market will bear. The highest amount customers in sufficient numbers will likely pay will be the price.

Now that is the Gods honest truth, doesn't matter what business you are in