Bordeaux pricing variability

David_K2 · October 3, 2014, 3:53pm

Why is Bordeaux pricing so variable between certain markets? In Massachusetts, where I am, it’s incredibly expensive – for example, it’s hard to find Lanessan for less than $30. But I’m in Florida on business, and Total Wine has it for $19.99. That won’t happen in Boston.

Is it just a matter of different regional distributors?

Neal.Mollen · October 3, 2014, 3:58pm

I’ll answer your question with a question: is it legal to ship wine into Mass. from an out-of-state retailer? No?

There is your answer.

Tom_Lee · October 3, 2014, 4:05pm

Pretty expensive in Seattle as well but I think it has to do mostly with the local importer.

Tom

BrianMarshall · October 3, 2014, 4:31pm

Its not just Bordeaux. My understanding is that importing and distribution in Massachusetts is controlled by a handful of businesses who protect their interests by creating legal barriers to entry, thereby forming an oligopoly and creating the opportunity (and need) to charge higher prices. These barriers also make it more costly for licensed importers and distributors to do business in the state, also contributing to the increased price which is pushed on to consumers. I believe taxes and fees are generally higher as well (believe it or not). States with open doors obviously have lower costs because the national market prices prevail.

David_K2 · October 3, 2014, 4:41pm

BrianMarshall:

Neal.Mollen:

I’ll answer your question with a question: is it legal to ship wine into Mass. from an out-of-state retailer? No?

There is your answer.

Its not just Bordeaux. My understanding is that importing and distribution in Massachusetts is controlled by a handful of businesses who protect their interests by creating legal barriers to entry, thereby forming an oligopoly and creating the opportunity (and need) to charge higher prices. These barriers also make it more costly for licensed importers and distributors to do business in the state, also contributing to the increased price which is pushed on to consumers. I believe taxes and fees are generally higher as well (believe it or not). States with open doors obviously have lower costs because the national market prices prevail.

I have found Massachusetts prices on some wines to be very competitive – sometimes higher than elsewhere but often lower and/or just in line with other markets. But with Bordeaux, I find it to be much higher almost without fail. I understand Bordeaux has a different distribution system than with most other wines?

BrianMarshall · October 3, 2014, 4:50pm

David_K:

BrianMarshall:

Neal.Mollen:

I’ll answer your question with a question: is it legal to ship wine into Mass. from an out-of-state retailer? No?

There is your answer.

Its not just Bordeaux. My understanding is that importing and distribution in Massachusetts is controlled by a handful of businesses who protect their interests by creating legal barriers to entry, thereby forming an oligopoly and creating the opportunity (and need) to charge higher prices. These barriers also make it more costly for licensed importers and distributors to do business in the state, also contributing to the increased price which is pushed on to consumers. I believe taxes and fees are generally higher as well (believe it or not). States with open doors obviously have lower costs because the national market prices prevail.

I have found Massachusetts prices on some wines to be very competitive – sometimes higher than elsewhere but often lower and/or just in line with other markets. But with Bordeaux, I find it to be much higher almost without fail. I understand Bordeaux has a different distribution system than with most other wines?

I can’t speak to Bordeaux specifically but I do agree that the prices here are consistently higher than other states. I understand it can be mixed with other wines, but for what I drink I usually find Mass pricing to be higher. I really just wish online retailers could ship into the State.