Is that still profitable? A few friends had mentioned that they were dropping off mailing lists,
and just buying occasional bottles of cult wines via offerings on Commerce Corner, WineBid, etc.
The only ones left with any margin are SQN & Screagle.
That might explain the mailing-list drop-offs of “lesser” cult wines, if people were financing their purchases via partial allotment flips.
Noodle business not what it was?
Noodle business not what it was?
It never quite was.
And if you don’t flip SQNs right away, many of them lose most of the upside. Only a handful with insanely low productions and big numbers are part of a sustainable SQN market.
Don’t Rhys sell at auction for a significant markup to the mailing list price?
Yes…so does Marcassin and Saxum. Alban as well to a lesser extent.
Schrader seems to still be pulling some premiums, as well (at least on the K&L site, they are). to a lesser extent, so does QC (albeit, not here for QC)
Don’t Rhys sell at auction for a significant markup to the mailing list price?
Slight markup, but not all that significant if you factor in premiums. I don’t think this is a list people join to generate cash.
Cayuse still sells for a good margin. I’ve seen upwards of $200 per for various syrah (not bionic frog). That’s a $130 margin, excluding shipping. Most new releases of big dogs are clearing a huge margin right now: Harlan, Scarecrow, and Sloan seem to be reselling for cost, 100 pointers aside. Kosta Browne has a little wiggle room, especially for some of the super-highly rated single vineyards, and of course the 09 sonoma coast. Marcassin does okay. SQN seems down at auction (at least from years past). Saxum is still clearing a heady margin. Alban isn’t really, considering you can buy “100 point” Alban syrah for $125. Most don’t clear much.
DRC and a few other big burgs clear a fortune, if you can get them on release.
Lafite is down a huge percentage in the states, as seem to be all first growths.
Grange seems down too, and release prices are higher than back vintages.
I lost my shirt selling 2,200 bottles of Cali cabs, pinots and chards.
I bought them to consume, then realized I had moved away from them.
While I had no Screagle or Marcassin, I did have Harlan, Hundred Acre, Sloan, Arietta, Dominus, Dalle Valle, etc., etc.
Only the Harlan was in the black, and then only in the best vintages.
I am still happy I sold them at auction, but demand was weak and the prices low (near reserve in most cases, with only 85% +/- sell-through.
Huh, were looking in different sites John because on WC Cayuse sells every week for $100-120 across the board except for the frog which ususally gets around $200.
Brian, I forgot Schrader, that does well everywhere Ive looked.
Cayuse still sells for a good margin. I’ve seen upwards of $200 per for various syrah (not bionic frog). That’s a $130 margin, excluding shipping. Most new releases of big dogs are clearing a huge margin right now: Harlan, Scarecrow, and Sloan seem to be reselling for cost, 100 pointers aside. Kosta Browne has a little wiggle room, especially for some of the super-highly rated single vineyards, and of course the 09 sonoma coast. Marcassin does okay. SQN seems down at auction (at least from years past). Saxum is still clearing a heady margin. Alban isn’t really, considering you can buy “100 point” Alban syrah for $125. Most don’t clear much.
I didn’t sell any Cayuse, Marcassin, SQN, Saxum or Scarecrow, so can’t comment
Harlan - only in good vintages did I clear all costs.
Sloan - only for 100 points, did I clear costs 98 points and below, lost 15%-25%.
Kosta Browne & Alban - didn’t come anywhere close to getting made whole.
I wish this was true of burgundy. A DRC/Mugnier/Roumier/Rousseau (etc…) allocation can be quite profitable. Annoying to those of us without said allocation.
What’s the secondary market for SQN’s NOK line?
Huh, were looking in different sites John because on WC Cayuse sells every week for $100-120 across the board except for the frog which ususally gets around $200.
Brian, I forgot Schrader, that does well everywhere Ive looked.
Humberto, that price is based on my 2007 Aramadas, which I did not sell. They were “99 pointers” and going at some auctions, and very frequently at retail, for $199-225. The price gradually fell as the market was flooded. I think a common mistake for people holding flip-worthy wines is the “wait and see.” That might work for a 10-15 year hold, but a mid-year holdout is a death sentence. You either flip them the second you can before the market is flooded, the second a wine wins a huge award or score, or way down the road as you pray that your investment return beats rate of inflation (is it from France? No? Is it Sassicaia? No? You’re fucked.)
The same is true for Kostas. You can’t buy them and then sit for 5 years and hope for a return. You have to sell them ASAP, or right when the top 100 list comes out and people are trying to pick up wines from the list. (Disclaimer…I haven’t sold any of mine, but have facilitated a few sales from my mother’s stash of KBs through a broker).
Cali cabs are going to suck it up with RP gone. If you have 2007s with 100 point scores…wait 5 years and cash in on your wet dream of profits as you eliminate from your cellar the last of a dying breed: The RP 100 - Napa Cult. $$$$$.
Or, you know, drink it. (disclaimer…I didn’t drink my 07 Scarecrows…but made about $800 on my 3 pack, which I then used to fund my Cayuse and Bordeaux desires…worth it.)
Is that still profitable?
The wines MUST be from Burgundy, Champagne, or Bordeaux, and they MUST have points [preferably 96-100 pts].
Bordeaux needs points from Parker, Burgundy needs points from Meadows.
There are a few other regions where you MIGHT be able to turn a profit - Napa Cabs, Barolo/Barbaresco Nebbiolo, but that’s about it.
And even in these best regions [Burgundy, Champagne, Bordeaux, the occasional Cal Cab or Nebbiolo], the 3-Tier System transactions costs will absolutely eat you alive [just properly packaging and shipping a nice wine can cost a relative fortune - remember, these aren’t QPR table wines where a little damage in transit by UPS can be overlooked - these are wines which absolutely positively have to arrive in PRISTINE condition, and that means you’re spending a (relative) ton of money on things like styrofoam peanuts and bubble wrap].
PS: In the past, board member Maureen Nelson has also warned folks that wine is classified by the IRS as a “collectible”, and therefore is NOT eligible for the capital gains tax rate - instead, it is taxed as ordinary income.
So when the day is done, if you do sell at a profit, and if you do everything on the “up and up” [i.e. reporting your gain to the IRS like a good little boy], then you’ll be paying upwards of 35% on your gain, rather than 15%.
QC is still flippable, but not for high margins anymore… Cayuse and SQN are flippable for profit, though I haven’t sold any Cayuse.
QC is still flippable, but not for high margins anymore… Cayuse and SQN are flippable for profit, though I haven’t sold any Cayuse.
Lost money on QC as well