Rising Prices from Distributors

[GAbiker]

As everyone seems to be aware, prices keep risings on bourbon. People seem to think it's all on the stores (in non ABC states), but in a lot of cases, that's not exactly the truth. In many many cases the rise is retail price is only a reflection in the rise in price from the distributor.

In the past 3 months, there has been an increase in the cost from distributor EVERY month for SOME bourbon. We just had Jim Beam Black go up $4 a 1.75. Rather than pass that on completely to the customer, we only raised the shelf price $2.

World Beverage in Duluth GA right now has sale prices on their Single Barrel Store select Jefferson Ocean ($64.99), Store Select Single Barrel Knob Creek BP ($34.99), Basil Hyden ($34.99) and Elijah Craig 12YO Handles ($45.99). These prices reflect a less than 10% mark up from the distributor. In other words, you have to sell a LOT of bottles to keep the lights on and pay employees.

Don't always blame the retailer for the increase in prices....

[Flyfish]

Don't always blame the retailer for the increase in prices....

Biker, I don't blame the retailer. I always have the option to walk away if I think the price is too high. What I object to is being protected by the state from prices that are too low. Several control states determine the minimum customers will pay. Seems to me that if you want to sell for less to build your customer base you should be allowed to. I purchased two handles of KC at the Phoenix Costco for less than the price of 750s in OH. That's not the fault of my local retailer. He sells what they choose to send him for the price they choose to determine.

[TunnelTiger]

I certainly don't blame my local go to's. I've know for sometime that they are totally at the mercy of the distributors for pricing and allocation.

No to mention that us in the boonies only get Atlanta's left overs.

[petrel800]

Is this an ad for a sale at World Beverage or a legit thread about prices?

[typoerror]

Is this an ad for a sale at World Beverage...

my thoughts exactly.

[texaspete]

I need to pick up some EC12 from that store apparently.

[polish.bourbon]

If someone was posting price lists that good for a store in NYC I'd be thanking them not sniping at them.

[GAbiker]

Is this an ad for a sale at World Beverage or a legit thread about prices?

Not meant to sound like an ad. Just using their prices since I know them and their bottle cost from their distributor. I'm pretty sure most package stores in non ABC states use the same formula.

[fishnbowljoe]

Appreciate the info Biker. It only goes to confirm a couple of things that I was "accidentally" shown, or privy to up here in my area.

I've been at my favorite stores more than once when distributors and sales reps were there. I asked some questions, and the guys pulled out their lists to check. There are times I can be very observant. :Clever: We have two main distributor in my area. One is pretty good. The other, not so much. The good one stays pretty much within their margins for the most part. The other one sees a mark up from the distillery, and from what I can tell, they more than double their points on the markup. The stores have no recourse other than to raise their prices even more in order to make a minimal profit. A couple of examples: The distributor that handles BT products is usually pretty fair. That's why BT stuff is mostly pretty reasonable around here. $23.99 for BT, $30.99 for ER 10, $54.99 for Blanton's, and $46.99 for Stagg Jr. etc… On the other hand, the distributor that handles MM can be a bit unscrupulous to say the least. They have MM at a fair price of $24.99, but they saw an opportunity with MMCS. They marked their price up so much on a 375 of MMCS, that the store has to charge $53.99 in order to make any profit all. Just goes to show ya' how different things can be with everything that stores, and us consumers, have to deal with.

Joe

[White Dog]

Appreciate the info Biker. It only goes to confirm a couple of things that I was "accidentally" shown, or privy to up here in my area.

I've been at my favorite stores more than once when distributors and sales reps were there. I asked some questions, and the guys pulled out their lists to check. There are times I can be very observant. :Clever: We have two main distributor in my area. One is pretty good. The other, not so much. The good one stays pretty much within their margins for the most part. The other one sees a mark up from the distillery, and from what I can tell, they more than double their points on the markup. The stores have no recourse other than to raise their prices even more in order to make a minimal profit. A couple of examples: The distributor that handles BT products is usually pretty fair. That's why BT stuff is mostly pretty reasonable around here. $23.99 for BT, $30.99 for ER 10, $54.99 for Blanton's, and $46.99 for Stagg Jr. etc… On the other hand, the distributor that handles MM can be a bit unscrupulous to say the least. They have MM at a fair price of $24.99, but they saw an opportunity with MMCS. They marked their price up so much on a 375 of MMCS, that the store has to charge $53.99 in order to make any profit all. Just goes to show ya' how different things can be with everything that stores, and us consumers, have to deal with.

Joe

Does Wirtz carry Beam, and Southern has Sazerac, or is it the other way around?

[fishnbowljoe]

Does Wirtz carry Beam, and Southern has Sazerac, or is it the other way around?

I refuse to answer on the grounds that I may incriminate myself.

Actually, and FWIW, it's the other way around Dog. Wirtz is generally okay. Southern, you just never can tell. At least that's my "general" take on things.