Retail price mark-ups

[bicktrav]

Today I found Elijah Craig Barrel Proof at a local store for $99. I know the sticker should be somewhere around $50 for that bourbon. The same store recently had a bottle of this year's Four Roses Limited Single Barrel marked at $200. The owner tried to tell me that Four Roses raised their prices for this year's release. I knew that was BS, but didn't feel like arguing. Anyway my question is how do certain retailers get away with such crazy mark-ups on sought after bottles? Surely there must be some sort of rule against that practice or else every store would raise the prices. Folks in the industry, any thoughts?

[fricky]

I am not aware of any price controls on bourbon. I assume a person can charge whatever they like. The buyer has to determine if it is worth the price. If it is too high, walk away.

[smknjoe]

Unfortunately, Fricky is correct. Some people are paying it, so some of the stores are trying to take advantage of that.

[petrel800]

The 4RSBLE price was discussed a few months back and as it started showing up in stores over $90, there was a suspicion that there was a price increase at the distributor level. How much, I don't know.

As for the retail pricing, well that horse has been beaten plenty around here. On limited stuff, if you see it on the shelf, expect it to be marked up. If you don't see it on a shelf, it's probably because it wasn't marked up. If you actually grab a bottle or two at MSRP (S being the important part of that, "suggested") consider yourself lucky or in good graces with whoever sold it to you. Supply and demand, unfortunately in the case of limited edition bourbons you really can't have your cake and eat it too.

[garbanzobean]

If it makes you feel less crazy, I bought a bottle for Four Roses Single Barrel LE 2014 for $89.99. As far as I know, it is the same MSRP it always was. ECBP seems to be about $5 more at MSRP than it was previously, but not crazy. The distributor or the store is having fun at your expense.

[smknjoe]

Around here I got my 4RSmBLE 2011/2012 in 2012/2013 for ~$78. Last year I got the 2013 SmBLE for $78-$85 depending on the source.

PHC 6 was $77

ORVW 10 $50-$60

PVW 15 ~$90

PVW 20 ~$175

VWFRR ~$80

ECBP ~$48

...all just about a year ago or less. The only reason we see high prices is because "we" are paying them.

Edited July 16, 2014 by smknjoe

[GaryT]

There are some states that have MINIMUM price controls, but they can charge as high as they want. Many have learned that while it may not move quickly - it will move at those prices. As a small business owner, if you don't have some regular customer that you would hold it for - makes sense to charge what you think the market will bear. Couple of months of carrying costs don't come close to the margin up-tick. When I see that, I just shrug and don't buy from them. But when folks are paying 3x retail, I can't blame them for wanting in on it.

[P&MLiquorsEric]

Allocations are getting smaller and smaller. Last year 3 cases of limited single barrel, this year 4 bottles. Price went up $9 from distributor, we moved price up $15 to $99.99. They sold in less than a day.

We could have put them at $149 in the case and they would have sold in a couple weeks.

People are paying crazy prices. It's not enthusiasts its the Johnny come latelys that will pay whatever to have what the latest news articles/magazines say is the best. In the 70s it was cocaine, 80s it was Bordeaux, 90s/2000s napa cult cabs, now it's bourbon and limited edition craft beers.

Edited July 16, 2014 by P&MLiquorsEric
update

[bicktrav]

So if it's no problem selling all these bottles at ridiculous prices, why do any stores maintain MSRPs? Not that I'm complaining about those places; I'm just curious. I've seen bottles like ECBP elsewhere for $50. Why would a store sell it so low when they can easily sell it for twice the price?

[GaryT]

So if it's no problem selling all these bottles at ridiculous prices, why do any stores maintain MSRPs? Not that I'm complaining about those places; I'm just curious. I've seen bottles like ECBP elsewhere for $50. Why would a store sell it so low when they can easily sell it for twice the price?

Just speculation on my part, but many of the stores I go into - I don't think the folks managing them are clued in. I mean - I've walked in and asked if they have Elijah Craig Barrel Proof and they say "Sure!" and point me to the EC12, or correct me ("Sir, Elijah Craig isn't a barrel proof bourbon; you're thinking of Bookers"). I don't mean that as a slam in any way either - bourbon is 6-10 ft of one wall of their store; and frankly it isn't what is keeping the lights on. But there are also stores who know what it is worth, and call their best customers and sell at MSRP because they know those customers are worth more than the mark-up on a couple of bottles.

[dcbt]

So if it's no problem selling all these bottles at ridiculous prices, why do any stores maintain MSRPs? Not that I'm complaining about those places; I'm just curious. I've seen bottles like ECBP elsewhere for $50. Why would a store sell it so low when they can easily sell it for twice the price?

Don't some states also have price controls so prices are essentially fixed?

[Harry in WashDC]

Some states, like Virginia, do set statewide prices and sell distilled spirits almost exclusively through state-owned stores. A typical exception: Distilleries in Virginia can sell their own products but only their own products and only at state-set prices. Here's a link to Virginia ABC store prices:

http://www.abc.state.va.us/Pricelist/price.html

[amg]

Some states, like Virginia, do set statewide prices and sell distilled spirits almost exclusively through state-owned stores. A typical exception: Distilleries in Virginia can sell their own products but only their own products and only at state-set prices. Here's a link to Virginia ABC store prices:

http://www.abc.state.va.us/Pricelist/price.html

Virginians sure do pay a premium for Beam products and Wild Turkey! Other prices look pretty good though. Interesting that a government entity would charge a different percent markup over MSRP for certain brands.

[TunnelTiger]

Price controls went out with Nixon. If I owned a store and that was how I supported my family I would try to get as much as I could for something that I know was going to move. Doesn't mean I wouldn't give a large discount to a valuable customer but some "joe" just walking off the street that doesn't support me week in week out, nah.

[HD 335]

So if it's no problem selling all these bottles at ridiculous prices, why do any stores maintain MSRPs? Not that I'm complaining about those places; I'm just curious. I've seen bottles like ECBP elsewhere for $50. Why would a store sell it so low when they can easily sell it for twice the price?

Just speculation on my part, but many of the stores I go into - I don't think the folks managing them are clued in. I mean - I've walked in and asked if they have Elijah Craig Barrel Proof and they say "Sure!" and point me to the EC12, or correct me ("Sir, Elijah Craig isn't a barrel proof bourbon; you're thinking of Bookers"). I don't mean that as a slam in any way either - bourbon is 6-10 ft of one wall of their store; and frankly it isn't what is keeping the lights on. But there are also stores who know what it is worth, and call their best customers and sell at MSRP because they know those customers are worth more than the mark-up on a couple of bottles.

Also speculation on my part, but I agree with daryl. I picked up 4 ECBP at $50 each from a wine and liquor store. All their limited releases are price reasonably, 4R 2014 LE SiB @ $95, Parkers Heritage POH $90. These types of stores sells other products, not just American Whiskey that they really don't keep up with the latest trend. The owner mentioned Bourbons have been requested more lately but most of his customer still come in to buy wine and beer whenever I stop by. Another local store mentioned to me that yes, they can charge more and let the allocated releases sit for a bit to make a bit more money, but the issue is those types of sales don't support their business. It's not like they get a few cases of the stuff every few weeks so profiting a relatively small amount while making some customers stereotype his store as an expensive one hurts his business. He relies on the bottom and mid shelf stuff to make money.

Of course, each owner is different. A small local deli/mart that sells spirits typically charges more allocated stuff. Their ECBP was marked at $70, and those sold out within a few days.

[Josh]

The best way to deal with price gougers is not to pay their prices and encourage others not to, or at least recommend more reasonable establishments. Eventually they may figure out that their prices are too high.

[smknjoe]

The best way to deal with price gougers is not to pay their prices and encourage others not to, or at least recommend more reasonable establishments. Eventually they may figure out that their prices are too high.

Right, that why I keep posting prices.

[HighHorse]

The best way to deal with price gougers is not to pay their prices and encourage others not to, or at least recommend more reasonable establishments. Eventually they may figure out that their prices are too high.

[BootsOnTheGround]

Fact: not every store pays the same price for every one of these products. Distributors compete with one another. Business owners are customers, too. Here, they are bound by licensing laws to buy only from those distributors.

So if you don't like the 'markup' why not ask the owner or manager WHY?

It never gets old, people find their fav bottle in a store at a price they don't agree with yet have no interest in understanding why; they just like to gripe about it, complain, or my personal favorite - call the f-ing distillery on them and 'report' them. Hilarious. Drop the entitlement bullshit and maybe you'll find yourself paying a lot less?

[smknjoe]

When you go in one day and a bottle is ~$80 and less than 24 hr's later the same bottle is $140 it's obvious why the price went up. And when I asked why the owner started looking on-line for the highest prices possible to show me. True story...

[BootsOnTheGround]

He didn't give a shit. That's his MO.

And where did he get that from? Is there a reason why shits *should* be given? He owes you what?

You know who REALLY doesn't give a shit? The government. You buy your booze, you pay your taxes, you follow their fake laws who protect the crooks, etc or you have no LQ store. This isn't selling sweet corn on the side of the street, its a gigantic racket which answers to a group of incompeten thugs who still enforce nonsense, arcain regulations left over after prohibition was repealed nearly 100 years ago.

[HighHorse]

He owes you what?.

You are correct sir if you are implying that he owes me nothing.

And .. as a result of his attitude (and yours for that matter) I owe neither of you anything.

Cheers.

[Josh]

So if you don't like the 'markup' why not ask the owner or manager WHY?

It never gets old, people find their fav bottle in a store at a price they don't agree with yet have no interest in understanding why; they just like to gripe about it, complain, or my personal favorite - call the f-ing distillery on them and 'report' them. Hilarious. Drop the entitlement bullshit and maybe you'll find yourself paying a lot less?

I don't care why. Why would I take the time to get into some conversation about why a retailer's prices are so high when I can take that time to drive to a store that has better prices?

I am entitled. Entitled to take my business elsewhere.

And where did he get that from? Is there a reason why shits *should* be given? He owes you what?

Shits should be given because without customers the store has no business. That's not him owing anybody anything, that's just being a smart business owner.

[squire]

I am entitled. Entitled to take my business elsewhere.

My sentiments exactly.

[steeltownbbq]

For once I'm glad my options to buy booze are limited to control states (OH & PA). Prices are set by the state, and using the respective web sites I can see what is in stock at the store and how much they are charging.

Of course special releases are never an issue because they don't come here