Does Storing OWC Make (Financial) Sense?

Tasting notes, varietals, grapes - anything related to wine
Post Reply
Message
Author
Sh@n A
GCC Member
GCC Member
Posts: 1303
Joined: July 9th, 2018, 8:21 am

Does Storing OWC Make (Financial) Sense?

#1 Post by Sh@n A » November 19th, 2019, 3:00 pm

Background
I store with offsite and just got my 2016 Bordeaux futures in, and I am assessing my storage costs, etc. What I learned, is they treat every OWC as a case or half case... so they charge a lot more to store OWC than cardboard. A three 750ml is a 0.5 case charge. a single 1.5L OWC is a 0.5 case charge and a three 1.5L OWC is a 1.0 case charge. A single 1.5L riesling is a 0.5 case charge. Normally a case would be twelve 750s or six 1.5L.

Said another way, if the annual cost to store is ~$25/case, instead of the $2.xx per bottle you would expect... the price shoots up egregiously.
- Riesling mags are $25/case * .5 case = $12.50 for a single bottle, per year. I paid $50 for one of those mags! It will be negative value soon enough!
- An OWC with three 750mls charged as a half case is ~$4.25 a bottle, 2x the charge I would expect.
- an OWC with three 1.5ls in an OWC charged as a full case, so would be ~$8.50/bottle, 2x the charge I would expect

Assuming the facility will not work with me, then I either (i) accept it, (ii) move them out of OWC, or (iii) switch offsite [there are options].


Question at hand: Are OWC worth storing? What value do they have? Why do they exist?
Is there any value to keeping these OWCs? Future sale? Ceremony? I plan to store in offsite for at least 10YR. About 50% of them has no plan (could sell, trade or drink). The other 50% will be held longer (birth year sautern for my daughter's wedding toast). I think I would like the boxes of the sauternes, because maybe there would be some decoration value there in the future.

The cost to move into cardboard will cost a few $/bottle, but over time, this will pay for itself (breakeven after ~1YR?). (Offsite charges $9 per cardboard box and $30/hour labor, and it wouldn't shock me if they then charged me another $2.50 a bottle to reprocess the inventory they already have in the system).

The two rieslings will be sold. No reason to pay $12.50 to offsite to store them as 3L bottles.
Last edited by Sh@n A on November 19th, 2019, 3:10 pm, edited 1 time in total.
/ @ g r @ \

User avatar
Victor Hong
Posts: 17147
Joined: May 30th, 2009, 1:34 pm

Re: Does Storing OWC Make (Financial) Sense?

#2 Post by Victor Hong » November 19th, 2019, 3:05 pm

No.

But storing the wine itself makes little financial sense. pileon
WineHunter.

User avatar
Mark Y
GCC Member
GCC Member
Posts: 7631
Joined: May 1st, 2009, 11:19 am
Location: Bellevue, WA

Re: Does Storing OWC Make (Financial) Sense?

#3 Post by Mark Y » November 19th, 2019, 3:25 pm

Hmm. the offsites in the seattle area are pay for a fix space.. u can store whatever u want in it.. i..e u rent a '200 btl capacity', u still pay it even if u leave it empty
pay by case seems pricey..
Y.e.

User avatar
Chuck Miller
GCC Member
GCC Member
Posts: 2256
Joined: June 1st, 2009, 7:58 am
Location: Seattle, WA

Re: Does Storing OWC Make (Financial) Sense?

#4 Post by Chuck Miller » November 19th, 2019, 4:16 pm

It’s a weird pricing structure, IMO. But they can price how they see fit, and you can either adapt to it or move to a different facility. It sounds as if you are in a managed facility as opposed to self storage.
Chuck Miller

User avatar
Kris Patten
GCC Member
GCC Member
Posts: 5187
Joined: February 1st, 2009, 6:25 pm
Location: Seattle

Re: Does Storing OWC Make (Financial) Sense?

#5 Post by Kris Patten » November 19th, 2019, 4:31 pm

Seems with structure above you should just build an addition to your home and amortize the cost vs. 5 years of storage.
ITB

Sarah Kirschbaum
Posts: 2992
Joined: September 20th, 2010, 11:53 am

Re: Does Storing OWC Make (Financial) Sense?

#6 Post by Sarah Kirschbaum » November 19th, 2019, 4:37 pm

You can always keep the OWCs in a basement or attic if you think you might want to sell someday. They don't need temp control, and the bottles can go right back in.

Btw, original packaging only makes a difference in resale price at a pretty high level. For most wines, it's cool but immaterial.

User avatar
GregT
Posts: 8751
Joined: April 15th, 2009, 3:12 pm

Re: Does Storing OWC Make (Financial) Sense?

#7 Post by GregT » November 19th, 2019, 4:44 pm

Questions at hand: Are OWC worth storing? What value do they have? Why do they exist?
That's several questions.

Worth storing? Only if you plan to sell and someone will pay extra for it.

What value? See above. Or you can use them to store flower pots and things. They're not much use otherwise as they're too flimsy to actually hold heavy items. Some people save them and use them for decorations, which is somewhat kitchy.

Why do they exist?

a) So people can agonize over them.

b) They're a bit sturdier than cardboard.

c) Mostly wineries use them to give their wine the impression of being extra high-end. So the winery eats the two or three bucks for the box because they're marking up the wine an extra $25 or so.
G . T a t a r

[i]"the incorrect overuse of apostrophes is staggering these days. I wonder if half the adults these days have any idea what they are for." Chris Seiber, 5/14/19[/i]

Sh@n A
GCC Member
GCC Member
Posts: 1303
Joined: July 9th, 2018, 8:21 am

Re: Does Storing OWC Make (Financial) Sense?

#8 Post by Sh@n A » November 19th, 2019, 4:55 pm

Sarah Kirschbaum wrote:
November 19th, 2019, 4:37 pm
Btw, original packaging only makes a difference in resale price at a pretty high level. For most wines, it's cool but immaterial.
Thanks! How high a level?
/ @ g r @ \

Sh@n A
GCC Member
GCC Member
Posts: 1303
Joined: July 9th, 2018, 8:21 am

Re: Does Storing OWC Make (Financial) Sense?

#9 Post by Sh@n A » November 19th, 2019, 4:56 pm

Thanks GregT! What I expected, but wanted to ask before tossing them out... seems like a way for everyone to just make more money except the consumer!
/ @ g r @ \

Sh@n A
GCC Member
GCC Member
Posts: 1303
Joined: July 9th, 2018, 8:21 am

Re: Does Storing OWC Make (Financial) Sense?

#10 Post by Sh@n A » November 19th, 2019, 5:05 pm

Chuck Miller wrote:
November 19th, 2019, 4:16 pm
It sounds as if you are in a managed facility as opposed to self storage.
Yes
Kris Patten wrote:
November 19th, 2019, 4:31 pm
Seems with structure above you should just build an addition to your home and amortize the cost vs. 5 years of storage.
Have to buy a home first
/ @ g r @ \

User avatar
Victor Hong
Posts: 17147
Joined: May 30th, 2009, 1:34 pm

Re: Does Storing OWC Make (Financial) Sense?

#11 Post by Victor Hong » November 19th, 2019, 5:09 pm

Sh@n A wrote:
November 19th, 2019, 4:55 pm
Sarah Kirschbaum wrote:
November 19th, 2019, 4:37 pm
Btw, original packaging only makes a difference in resale price at a pretty high level. For most wines, it's cool but immaterial.
Thanks! How high a level?
As somebody once said, if you have to ask, you cannot afford it.
WineHunter.

User avatar
Kris Patten
GCC Member
GCC Member
Posts: 5187
Joined: February 1st, 2009, 6:25 pm
Location: Seattle

Re: Does Storing OWC Make (Financial) Sense?

#12 Post by Kris Patten » November 19th, 2019, 5:11 pm

No house = fatal flaw in my plan.

Not sure how many cases you store, but I'd look for a self storage facility and keep what you'd like vs what your storage facility dictates for size/package.

As far as OWC, useless outside of DRC, 6ltr of Yquem, or Lafite or some such you plan on selling later.
ITB

Sh@n A
GCC Member
GCC Member
Posts: 1303
Joined: July 9th, 2018, 8:21 am

Re: Does Storing OWC Make (Financial) Sense?

#13 Post by Sh@n A » November 19th, 2019, 5:27 pm

Kris Patten wrote:
November 19th, 2019, 5:11 pm
As far as OWC, useless outside of DRC, 6ltr of Yquem, or Lafite or some such you plan on selling later.
6LTR OWC! This is helpful, thanks!
/ @ g r @ \

User avatar
Robert M yers
GCC Member
GCC Member
Posts: 2925
Joined: March 10th, 2010, 8:24 pm
Location: Cleveland

Re: Does Storing OWC Make (Financial) Sense?

#14 Post by Robert M yers » November 19th, 2019, 10:54 pm

Seriously, you need to start buying 11 bottles.

User avatar
Markus S
Posts: 6605
Joined: May 20th, 2010, 7:27 am

Re: Does Storing OWC Make (Financial) Sense?

#15 Post by Markus S » November 20th, 2019, 5:33 am

Small price to pay for our 'hobby'.
Besides, they look nice, and won't fall apart when storing them in a damp cellar. Keep 'em and pay the extra cost.
$ _ € ® e . k @

Sarah Kirschbaum
Posts: 2992
Joined: September 20th, 2010, 11:53 am

Re: Does Storing OWC Make (Financial) Sense?

#16 Post by Sarah Kirschbaum » November 20th, 2019, 6:00 am

Sh@n A wrote:
November 19th, 2019, 4:55 pm
Sarah Kirschbaum wrote:
November 19th, 2019, 4:37 pm
Btw, original packaging only makes a difference in resale price at a pretty high level. For most wines, it's cool but immaterial.
Thanks! How high a level?
Like Kris said - mostly DRC and first growth level, or very rare/older bottlings.

User avatar
AndyK
Posts: 341
Joined: February 17th, 2018, 4:29 pm
Location: San Francisco

Re: Does Storing OWC Make (Financial) Sense?

#17 Post by AndyK » November 20th, 2019, 8:27 am

I would look into self storage. That seems quite high cost per bottle/magnum. I pay about $0.85 average per bottle per year and that's in the SF Bay Area... But then, it's not super convenient.
k0berl

User avatar
Cris Whetstone
GCC Member
GCC Member
Posts: 11022
Joined: January 27th, 2009, 1:09 pm
Location: OC, CA

Re: Does Storing OWC Make (Financial) Sense?

#18 Post by Cris Whetstone » November 20th, 2019, 8:34 am

I don't if this has been said explicitly but you are paying a premium for your managed storage facility. So I'm not sure your question is important without considering that you have other options for storage out there.

Others are correct about the wood only being important for high end auction wines. It stacks nicer than cardboard for the most part but it's also more of a bear to move around.
WetRock

"Man prefers to believe what he prefers to be true." - Francis Bacon

"I had taken two finger-bowls of champagne and the scene had changed before my eyes into something significant, elemental, and profound." - F. Scott Fitzgerald, The Great Gatsby

Jeff_M.
GCC Member
GCC Member
Posts: 544
Joined: July 18th, 2019, 7:39 am
Location: SoCal

Re: Does Storing OWC Make (Financial) Sense?

#19 Post by Jeff_M. » November 20th, 2019, 9:05 am

I find the OWC's to be a pain in the ass. Yes they look nice and if you plan on flipping the wine it makes sense to hold onto the box to help sell the wine. Otherwise to me they serve no purpose. The few that I have will end up as firewood at some point.
Jeff M 0 l l

2020 WOTY Candidates
2007 Yangarra Estate High Sands Grenache

User avatar
A1ex H
Posts: 274
Joined: August 16th, 2016, 12:32 pm
Location: London/ Philadelphia

Re: Does Storing OWC Make (Financial) Sense?

#20 Post by A1ex H » November 20th, 2019, 9:07 am

I think it's crazy that they charge a different amount for OWC vs. cardboard. I store my wine in a managed facility and the pricing is identical regardless of the packing materials.

The benefit is marginal but I feel there is some value to keeping the OWCs even if you don't plan on selling the wine. You never know if you palate will change and the wine will be easier to sell if it's in its OWC and has clearly never been touched. While this may be more important for high end auction wines, I imagine it's still true even for things like non-first growth classified left bank Bordeaux or high end but non DRC Burgundy. If you ever have an issue with the wine and need to return it to the retailer, perhaps it helps to still have the OWC you received the wine in. Finally, perhaps you get some enjoyment out of opening the wood case when you have your first bottle.
H@ns£n

User avatar
David Glasser
GCC Member
GCC Member
Posts: 7390
Joined: August 16th, 2009, 6:03 pm
Location: Maryland

Re: Does Storing OWC Make (Financial) Sense?

#21 Post by David Glasser » November 20th, 2019, 9:57 pm

I’ve never had trouble selling wine without the OWC when thinning the cellar. Maybe my experience wasn't typical, but buyers passed on them when I did have them. Most wasn’t high end stuff but this was true for first growths as well. Perhaps it’s a bigger deal when buying and selling unbroken cases. We had a storage room in the basement full of OWCs. Eventually used them for kindling.

Post Reply

Return to “Wine Talk”