When a young wine is cheaper at retail than at the winery – often by 20% or more – where do you buy? Does your loyalty to a winery drive you towards buying there, even at higher prices?
Can you provide an example of this? And when you say “at the winery”, do you mean only when on site or via web? When considering purchasing directly from a winery (whether via web or on site), I tend to seek out those that aren’t on offer via retail in the state I live in. Therefore I can’t think of a winery I’m familiar with where I could buy on site, but I’d be able to pick up a bottle at retail for 20% less.
I don’t think I have encountered that situation yet. I am newer to online purchasing than many.
However, I have bought wines that were 50% less expensive (minus shipping) via Winery site than retail source: Bedrock OVZ, Turley OVZ…
Ridge geyserville is 38 from the ridge mailing list and 31 at my grocery store.
I will support the winery, it’s just me. I did have a recent example when I bought from the winery and then saw the wine a few days later cheaper by about 15-20%. I thought about it but I never said anything. The relationship with the winery, their people is far more important than a few dollars. And, I’d rather leave my spend with the people who made it, not with someone in the middle.
Unless it’s a close-out sale situation or something similar, “cheaper from retail” pricing really bothers me. And, as a consumer, I’ll always pay the cheaper price for an identical product.
Examples:
Limerick Lane Syrah-Grenach is $36 from the winery, and $31-32 at retail. Same with the Russian River Valley Zin.
Barnett – a winery we’ve visited multiple times – sells its Rattlesnake Hill Cabernet for $170, and was recently available at retail (albeit on sale) for around $130.
Happens to the higher-end more widely distributed wines like Barnett’s above, and quite often Chappellet’s Pritchard Hill Cabernet.
Of course, this only applies to some of the wines that get at least some retail distribution, but it’s out there for sure.
Enough stores bring in close-out lots or get nice volume pricing on wholesale that they seem to be able to sell well below SRP. E.g. Last week I picked up a couple bottles of Bell Canterbury Vyd Syrah at Pavilions (of all places) for 40% less than SRP. LA Wine Co had some Vogelzang Vineyard Sauv Blanc for $12 while retail was around $20 or $24.
One winemaker told me that his wholesale pricing was about 50-60% of retail. So it’s not surprising that stores can sell for way less than SRP if they choose.
What about loyalty to the retailers with which one does business. If someone is buying a winery’s product, there is no lack of loyalty
I’ve seen it often enough and realized that it bothered me that a winery thought so little of me that they thought it was ok to offer anonymous customers via a retailer better pricing than a loyal customer so I simply stopped buying from the winery. There’s plenty of excellent wine. One doesn’t need to patronize establishments that are disdainful of my loyalty.
Aside from close outs or club prices, you should always expect same or lower prices at retail. The winery really needs to charge SRP to not risk undercutting and PO’ing their retail suppliers. You will almost always see that. Sure, exceptions are out there, but that’s the general rule.
+1. There is value to me to being able to sit behind my desk and order without going to the store. There is value to me knowing that I have a guaranteed source. There is value to me in being able to talk to and learn from the producers. And on and on. And I hate the three tier system. Enough reasons?
I also saw a bottle of Saxum Paderewski today with a $150 price tag, so it evens out.
I would support the local wine store
For small wineries, I prefer to support them directly, and I also am willing to pay a premium for provenance. For mass-produced stuff I’m not planning to age, I’ll buy from Costco or whoever has a good price.
I don’t get the question at all. I assume that the OP drinks exclusively US wines?
A basic principle in sales and marketing is that the original manufacturer not undercut their retailers unless they don’t need the retail channel and can sell everything themselves. If I’m a retailer and I know that my customers are passing me by and going to the producer who’s underselling me, I drop that manufacturer/producer and deal with someone else.
In addition, retailers need to turn inventory and if they can’t they discount it to the point at which it will move. If it’s a good deal, I’m happy to take it.
If a product is something that you want to buy, why not buy it as cheaply as you can?
Yea that one cracks me up. I’ve been buying Ridge Zins for 20 years. The retail price difference compared to the winery price, coupled with the fact that I save in shipping on the cross-country hassle, makes retail a major no-brainer.
Buying at retail, still supports the winery. They wouldn’t sell to wholesalers if they didn’t have to. I both make and sell wine retail. I realize when a bottle leaves my hands at wholesale I’m getting in return what I expected to receive. Plus it’s a means to get bottles into people’s hands to drink it.
Wine’s made and it’s gotta be sold. I don’t go to Europe much so rather difficult to fill the bags with cheaper wines bought over there, so I buy them where I can find 'em.
Not the small guys. They are lucky if they break even selling through the three tier. They get 50% of retail minus tasting freebies and other stuff. I don’t buy direct from anyone as big as Ridge, let alone Kendall Jackson, although Siduri now becomes an interesting question. I suppose I would no longer buy direct from them if I can get it cheaper at retail because it’s not like I’m buying from Adam.
Arrowood 2012 Sonoma County Cab (not the Reserve Speciale) is $35 directly from Arrowood, but I can get it for $22 at Wine Works.
However, Bedrock Old Vine Zin is about $20 direct but $30 or more in local shops.
Conclusion: I buy where it benefits my wallet.