Blog

Wine pricing skulduggery

Wine pricing

“This must be a good deal — we spent $40 to save $4.”

It’s bad enough that post-modern wine pricing is designed to make wine buying even more difficult, but what happens when retailers take wine pricing confusion to another level? Call it wine pricing skulduggery, and it turns out wine isn’t the only category that suffers from it:

The fake volume discount. Store A sells Rene Barbier white for $6.99, but offers a 10 percent discount if you buy four or more bottles. Store B, about 10 minutes away, sells the same wine for $5.99. Drive the extra distance, and you can buy four bottles at store B for less than the discounted price at store A ($23.96 vs. $25.16). Or you can buy two bottles at store B, which is all I wanted, and not have to listen to someone at store A tell you that spending $13.98 to save $2.80 makes good sense.

• The previous vintage two-step. This is the time of year when retailers start to get the current vintage, 2014 for reds and 2015 for whites. So beware older vintages with big signs proclaiming deep discounts, like store C did with the 2013 vintage of the legendary Domaine du Tariquet Classic. It was “marked down” from $12.99 to $10.99, even though it’s usually about $10. That’s bad enough. But since it was a previous vintage, the retailer likely got it from the wholesaler at a significant discount so the wholesaler could get it out of the warehouse. In other words, store C is selling the wine for the normal price, even though it probably paid less for it and there’s a good chance that the 2013 suffered after sitting in a warehouse for two years.

• The private label shuffle. Also saw this at store C (though store A is notorious for doing the same thing): A California red with a cute name and a bright and enticing label, in a big display promising all sorts of things a $15 wine can’t deliver. Look at the back label, and the bottled and vintaged information mentions a company no one has ever heard of. That’s because the company only exists to sell this wine to this retailer, and the $15 price is not as much a reflection of the wine’s quality but how much margin the private label company promised it could deliver to the retailer. In other words, $8 wine in $15 clothing.

Depressed? That’s understandable, given how many retailers think wine drinkers are ripe for the picking. As I noted in the cheap wine book: “The best retailers do more than sell wine. They help you find wine you didn’t know you would like.” Obviously, the retailers mentioned here never read the book.

(Visited 224 times, 2 visits today)

Leave a Reply

Your email address will not be published. Required fields are marked *
You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This site uses Akismet to reduce spam. Learn how your comment data is processed.