Why premium for Magnums?

New to this and don’t understand the premiums that are charged for magnums

Just my $.02.

Magnum glass is considerably more expensive(12x750ml bottles are $12.00, 6x1500ml are $20) Corks are 50% of normal cost(half as many needed), labels done for magnums are probably much more expensive than 750s due to a small size run, and labor is higher often due to hand bottling.
That said, I feel like a magnum can be produced for about $9 over double the 750ml cost.

But plenty of wineries add a “baller” fee to their magnum pricing.

If mags were $9 more I don’t think people even think much about it . It’s the baller fee that makes people go hmmm…
I think scarecrow has a $500 premium. Granted their bottles are probably $20 each and can be used to house a grenade.

Supply and demand, just like in any other business.

Supply and demand, plus higher costs and perceived “cooler/fancier” element .

I personally find Magnums pretty unnecessary for me
I almost never want to have that much served of a single wine and if so many producers I own multiples of so can serve equal qty. Storing them is tough and usually I’m spite of scarcity the rare times I have sold or traded one demand is limited. Except for super high end wines would likely be a poor investment . Proof of my theory is one buyer of Scarecrow is not buying ANY mags vs wanting many 750s

I always figured the wine is the piece you’re really paying the most for whether you buy a 750, 1500, 3L… and when you buy a mag there’s a higher ratio of wine/bottle cost. But that was always just my guess

Over the years, I found magnums better than fifths. Last comparison was La Louviere 1990 which from magnum was young vibrant with a long finish. The same wine from fifth was excellent, far more evolved and did not have either the depth or the elongation of the magnum.

Because it’s way cooler to show up to a party with one that’s bigger than the other guys.

I think all of the replies above have some truth in them. They definitely do cost the winery more money and effort than two 750ml bottles, but there is also a balla’ upcharge and just supply/demand aspect to the pricing too.

The weird thing is that, for nearly any other product, your cost per amount drops as you buy bigger sizes. Wine may be the only product I can think of where it is the reverse.

Nothing about wine makes sense financially, it’s art.

1. Very, very true. Although my wine disappears faster than the art on my walls.

2. While I enjoy art of all kinds I’ve never gotten the thrill (or buzz) that a great wine gives me. (Except maybe a great rock & roll show)

3. My wife definitely agrees (at least with the financial part)

3. So long as you find wines she likes, you’re good.

I grew up in a house where if my Mom liked a wine, my Dad bought a case. I learned quite a bit in my high school years about my Mom’s taste preferences…

+1

Sorry to say, but it´s not art - it´s crafts.

375s cost more, too.

Must be compensating for smaller size.

Lol…

Twice the corks, capsules, and labels. Plus the little bottles actually cost more than 750s…and let’s be honest, most of us producers think a pint is the smallest size a fermented beverage should come in.

I couldn’t disagree more.