To Tariff or Not to Tariff
- William Gladstone
- BerserkerBusiness
- Posts: 501
- Joined: June 12th, 2013, 2:34 am
- Location: new york, honolulu, hong kong
To Tariff or Not to Tariff
Dear Members,
I've found the opinions, POV, information of the diverse community of Berserkers has been often times extremely helpful.
So I was very interested to open this question to the members to hear POV outside of my internal dialog.
I've only spoken with a few - a major West Coast retailer, a California and a N.Y. importer distributor - asking what are you planning to do with your prices because of this new Trump Tariff of 25%?
So far we've not made any adjustment, however, from what I hear and what I am beginning to see on-line, I wonder when we should?
When we purchased E.P. and the Euro was 1.42 , and several years later when it was released, the Euro was 1.18, how could we compete.
Now we are in the reverse position - quite by accident. We loaded up on inventory of Fine Bordeaux and Burgundy and our prices are causing clients
from all over the U.S. to contact us.
Should we move our prices up? And when? For now I like attracting new clients.
I looked at Ch. Giscours, 2015- we are offering at $49/btl, and the rest of the U.S. market is at $70, $80, and $90.
I've found the opinions, POV, information of the diverse community of Berserkers has been often times extremely helpful.
So I was very interested to open this question to the members to hear POV outside of my internal dialog.
I've only spoken with a few - a major West Coast retailer, a California and a N.Y. importer distributor - asking what are you planning to do with your prices because of this new Trump Tariff of 25%?
So far we've not made any adjustment, however, from what I hear and what I am beginning to see on-line, I wonder when we should?
When we purchased E.P. and the Euro was 1.42 , and several years later when it was released, the Euro was 1.18, how could we compete.
Now we are in the reverse position - quite by accident. We loaded up on inventory of Fine Bordeaux and Burgundy and our prices are causing clients
from all over the U.S. to contact us.
Should we move our prices up? And when? For now I like attracting new clients.
I looked at Ch. Giscours, 2015- we are offering at $49/btl, and the rest of the U.S. market is at $70, $80, and $90.
- T Klonoski
- GCC Member
- Posts: 260
- Joined: July 10th, 2010, 3:20 pm
Re: To Tariff or Not to Tariff
I would up prices moderately but offer deeper discounts than normal for large orders.
T0m
- William Gladstone
- BerserkerBusiness
- Posts: 501
- Joined: June 12th, 2013, 2:34 am
- Location: new york, honolulu, hong kong
Re: To Tariff or Not to Tariff
mmmm....T Klonoski wrote: ↑November 5th, 2019, 12:11 pmI would up prices moderately but offer deeper discounts than normal for large orders.
thanks
- Chris Freemott
- BerserkerBusiness
- Posts: 5820
- Joined: January 29th, 2009, 7:00 pm
- Location: Naperville, IL
Re: To Tariff or Not to Tariff
Prices are naturally downward sticky. You should look at your current inventory and price to replace it at the market cost. I realize this is harder with wine than, say, gasoline. But, the pump reflects the futures price, not the past price.
You took the risk. You laid out the captial. You hold the inventory and pay for the insurance and space. Get paid for your risk. You needn't take the entire spread, but, take some for sure.
You took the risk. You laid out the captial. You hold the inventory and pay for the insurance and space. Get paid for your risk. You needn't take the entire spread, but, take some for sure.
- William Gladstone
- BerserkerBusiness
- Posts: 501
- Joined: June 12th, 2013, 2:34 am
- Location: new york, honolulu, hong kong
Re: To Tariff or Not to Tariff
thank you very muchChris Freemott wrote: ↑November 5th, 2019, 4:06 pmPrices are naturally downward sticky. You should look at your current inventory and price to replace it at the market cost. I realize this is harder with wine than, say, gasoline. But, the pump reflects the futures price, not the past price.
You took the risk. You laid out the captial. You hold the inventory and pay for the insurance and space. Get paid for your risk. You needn't take the entire spread, but, take some for sure.
I wish, that is sound business principal,
so often we sell very expensive bottles at exactly the same price we spend to replace (S Eagles are a perfect example) - I always shudder at that.
I don't know,
My sense is to wait and see, and for now, no one within the business has the time to do this,
I did not think of replacing what we sell, simply because of the vintage issue..
I don't know what we'll do
- Chris Freemott
- BerserkerBusiness
- Posts: 5820
- Joined: January 29th, 2009, 7:00 pm
- Location: Naperville, IL
Re: To Tariff or Not to Tariff
Another consideration is to evaluate your own desire for your return on capital. If, as you sell vintage wines, the demand is fickle to the price (and may frankly question and dismiss a price that is significantly lower than others) then price to your return on capital. Evanluate how long you've had to hold the wines and what your turns are.
I sell wine glasses. I work on thin margins b/c I can turn my cash 5x a year. If I could only turn 1x a year, I'd be more price sensitive.
I sell wine glasses. I work on thin margins b/c I can turn my cash 5x a year. If I could only turn 1x a year, I'd be more price sensitive.
- William Gladstone
- BerserkerBusiness
- Posts: 501
- Joined: June 12th, 2013, 2:34 am
- Location: new york, honolulu, hong kong
Re: To Tariff or Not to Tariff
Yea... we do not turn like that... we sit, for Bordeaux, for a year, 2 years and longer. burgundy we turn in a year, and california we pretty much sell right from the winerys.. complicated by the Euro movements and most of the past 10 vintages a lack of appreciation from E.P. to release..Chris Freemott wrote: ↑November 5th, 2019, 4:40 pmAnother consideration is to evaluate your own desire for your return on capital. If, as you sell vintage wines, the demand is fickle to the price (and may frankly question and dismiss a price that is significantly lower than others) then price to your return on capital. Evanluate how long you've had to hold the wines and what your turns are.
I sell wine glasses. I work on thin margins b/c I can turn my cash 5x a year. If I could only turn 1x a year, I'd be more price sensitive.
- alan weinberg
- GCC Member
- Posts: 11863
- Joined: April 25th, 2009, 1:23 pm
Re: To Tariff or Not to Tariff
make some money. But remember, you can cut a man’s hair many times, but can scalp him only once.