“I can understand small percentage markups to cover transport and distribution, but this is something else.”
Non profit importing and distribution? Not likely to happen.
My post from the “Gouging” thead on eBob is relevant here too:
“What value is being added in the chain by the importer and distributor to require such markups per bottle, especially if they don’t include taxes/transportation? Very basically, isn’t that what importers and distributors do? Transport merchandise from one place to another (with a bit of storage in between)?”
Things that margin pays for:
Buying trips to Europe (or wherever) that are A) expensive and B) NOT vacations but hard work.
Lots and Lots and LOTS of paperwork and processing from analysis to customs to label approvals.
Cost of capital while wine is in holding during consolidation, transport and warehousing in the US.
Taxes, Taxes and more Taxes.
Samples, sales commissions, salaries, car allowances and staff training involved in actually SELLING the wine.
Cost of capitial after the sale while waiting to get paid.
Collection costs when you DON’T get paid.
And, channelling Nicholson from A Few Good Men:
"Son, we live in a world with great wines being made all over the planet but those wines don’t just magically appear on shelves in wine shops or your fancy web sites, they are brought here by men with good palates, a dream and the will to make things happen. You have the luxury of not knowing all the things I have to do so you can stand around at parties and bitch about the price of the wine I provide for you. You want me out there in the vineyards and on the docks. You NEED me out there in the vineyards and docks where we use concepts like investment, inventory diversity, staff training, taking a position on something no critic has ever rated and, yes, a decent margin that I can feed my family with as a reward for my labors on YOUR behalf. You use those words as a punchline and call me greedy.
I have neither the time nor the inclination to explain myself to a man who owns more wine than he and his grandchildren could ever drink thanks to the vinous diversity that I provide and then questions the manner in which I provide it. I would rather you just said, “Thank you” and went off to your precious First Growth vs Cult Cabs (don’t get me started on the pricing model of THOSE) offline while I sit in my office and taste through fifty samples to find ONE great QPR wine that you can serve at your daughter’s wedding.
So, if you think it’s so easy and that I am getting rich, buy a plane ticket, visit unknown vignerons and cantine, put together a portfolio, bring it to the US, get it distribution and try and compete in the real market. Either way, I don’t give a damn what you think you are entitled to!"