tag:blogger.com,1999:blog-21271644.post8593095510433311492..comments2023-11-02T07:13:53.064-07:00Comments on Beervana: Variable Pricing?Jeff Alworthhttp://www.blogger.com/profile/02930119177544342495noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-21271644.post-83818359248459852372009-02-09T08:39:00.000-08:002009-02-09T08:39:00.000-08:00This is a fascinating topic and one that I have me...This is a fascinating topic and one that I have mentally complained about for quite some time. Widmer's explanation of spreading the cost over the entire portfolio makes sense and I guess I can't blame them for doing that. But at the same time it means I am paying more for a hefeweizen which should be a very cheap beer to brew while getting a deal on an IPA which has more expensive ingredients.Erik Huntoonhttps://www.blogger.com/profile/02360667752111326811noreply@blogger.comtag:blogger.com,1999:blog-21271644.post-28495298322625320982009-01-31T15:10:00.000-08:002009-01-31T15:10:00.000-08:00Jeff,I have wondered the same thing and had the pa...Jeff,<BR/><BR/>I have wondered the same thing and had the particular style of pricing in my ever evolving business plan.Unknownhttps://www.blogger.com/profile/14624326585779194419noreply@blogger.comtag:blogger.com,1999:blog-21271644.post-54078769554827123722009-01-31T10:23:00.000-08:002009-01-31T10:23:00.000-08:00Saying "The grocer sets the price" isn't really re...Saying "The grocer sets the price" isn't really reflective of reality. Admittedly, the final shelf price is up to the grocer, but the breweries know what margin the distributors will take, and roughly what margin most stores will take, and the price they charge the distributors determines what it will cost when it finally hits the shelves.<BR/><BR/>So, if the brewery wants their beer on the Chrishttps://www.blogger.com/profile/04670279083285348299noreply@blogger.comtag:blogger.com,1999:blog-21271644.post-27574862603120763652009-01-31T08:58:00.000-08:002009-01-31T08:58:00.000-08:00I think breweries try to stay within a Linear pric...I think breweries try to stay within a Linear pricing of bottled beer to be competitive. <BR/><BR/>The cost of bottles, packaging and the like goes up at a steady rate. I'm not 100% sure, but I might bet the bottle, label and six pack holders cost more than the beer does to make. 22 oz bottles cost even more. Unlike home brewers, the breweries are not reusing the bottles that go out the door.<BR/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-21271644.post-77012536264855184372009-01-31T07:47:00.000-08:002009-01-31T07:47:00.000-08:00Here's a Dutch Brewery's price board, obviously bi...Here's a Dutch Brewery's price board, obviously big beers are more. BTW if you're in Amsterdam be sure to try Zatte on tap, much better than in the bottle! Very nice little brewery!<BR/>http://farm4.static.flickr.com/3259/3081166585_53ae75119e_b.jpgMuddyhttps://www.blogger.com/profile/14346634094966354024noreply@blogger.comtag:blogger.com,1999:blog-21271644.post-29643460698779734842009-01-30T18:29:00.000-08:002009-01-30T18:29:00.000-08:00Jeff -Many of the brewpubs in NM already have that...Jeff -<BR/><BR/>Many of the brewpubs in NM already have that sort of variable pricing.<BR/><BR/>Makes sense. Works fine.<BR/><BR/>You could even argue that it has educational value. Why does this beer cost more than that one?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-21271644.post-49114385637616145732009-01-30T15:34:00.000-08:002009-01-30T15:34:00.000-08:00And, by the way, I think there is more variable pr...And, by the way, I think there is more variable pricing on 22oz bottles, another conundrum...Patrick Emersonhttps://www.blogger.com/profile/17242234148546323374noreply@blogger.comtag:blogger.com,1999:blog-21271644.post-46541837954096008602009-01-30T15:16:00.000-08:002009-01-30T15:16:00.000-08:00if you really want to sound fancy, you can use the...if you really want to sound fancy, you can use the economist's term: non-linear pricing.<BR/><BR/>I think it has a lot more to do with the demand side in this case than the supply side. Remember price is determined by both, not just marginal cost. If the market demand for IPA is a little lower than for pale ale, you would get just this pricing out of market equilibrium. <BR/><BR/>My sense is Patrick Emersonhttps://www.blogger.com/profile/17242234148546323374noreply@blogger.com