Beer Prices

[markaberrant]

I think a lot of craft beer is really good value, some prices are not much different from some from the big 3. Even the recent IPA release is priced well, I would pay more for some of them, however others I will only buy once to try. But my original point is that some prices just make no sense to me, and those are usualy beers I avoid buying.

I had a really insightful meeting earlier today with 6 SK government liquor execs. The topic of pricing was interesting to say the least. I certainly came away with an even greater understanding of the complexity.

[ercousin]

Its pretty simple really... you charge what people are ready to pay for a beer. If it sells out too quick and you cant produce enough to satisfy demand... raise prices.

Capitalism. Balancing demand vs offer.

If you cant sell your beer at a given price point, its an indication that either your price point is too high (retailers dont get their 10-20%), or competition has a better seller, at a lower price point/hiogher quality.

I've discussed this a long time with brewers at a high price point. There are very diverse opinions on the subject. Some sell to go for direct competition, but at the end of the day, if you manage to sell out a beer at a high price point... some argue... why would anyone wishing well on their business sell any lower?

Another consideration with pricing. I've heard from an Ontario brewer that another consideration when pricing your beers in the lcbo is that you can only lower prices on a product, never raise them. This could be a reason why brewers are taking the cautious route and pricing higher, at least to start.

[matt7215]

Its pretty simple really... you charge what people are ready to pay for a beer. If it sells out too quick and you cant produce enough to satisfy demand... raise prices.

Capitalism. Balancing demand vs offer.

If you cant sell your beer at a given price point, its an indication that either your price point is too high (retailers dont get their 10-20%), or competition has a better seller, at a lower price point/hiogher quality.

I've discussed this a long time with brewers at a high price point. There are very diverse opinions on the subject. Some sell to go for direct competition, but at the end of the day, if you manage to sell out a beer at a high price point... some argue... why would anyone wishing well on their business sell any lower?

Another consideration with pricing. I've heard from an Ontario brewer that another consideration when pricing your beers in the lcbo is that you can only lower prices on a product, never raise them. This could be a reason why brewers are taking the cautious route and pricing higher, at least to start.

that is 100% not true

[esprit]

Of course prices can be raised. On seasonals it's a one shot so the price is the price...on permanent listings, we need to maintain the retail for 12 months and, after that, we can do what we wish. The LCBO does not establish prices...they are calculated to their formula but the producer/agent gives the LCBO a price and it is what it is and they can vary the retail by readjusting their quote.

[ercousin]

I stand corrected then, clearly the information I received was inaccurate. Perhaps they were referring to seasonals...

[midlife crisis]

I would suggest that up to a certain point at least, demand for quality craft beer is price inelastic. I mean, I don't even notice if Hop Circle is $12.50 or $13.50 or $14.50. If I'm keen to try it, I will try it. Of course there is always a point where the price will be just too high, but I'm not sure we're there yet. Others may disagree.

[cattersley]

I am finding that the price of craft beer continually increasing. I would like to buy more of the good stuff, but can't afford it. I would like it if the beer store actually took a lead in getting more good beers, and offering them 24's to save some money, then split cases with friends for a saving and getting a variety.

[JerCraigs]

Another consideration with pricing. I've heard from an Ontario brewer that another consideration when pricing your beers in the lcbo is that you can only lower prices on a product, never raise them. This could be a reason why brewers are taking the cautious route and pricing higher, at least to start.

Perhaps it's more of a case of people get used to a price and notice when it is raised?

[zane9]

Flying Monkey Matador is on the shelf today @ $10.95/750ml. I enjoy this beer, and apparently so do many others.

It will likely fly off the shelf, but not into my hands. Being the only serious beer-drinker at home, the price-point is too high: At 11% ABV and 750ml, it's not for me, unless I can find out from another BT thread on how to "keep" the beer after opening.

I would rather have it at Bar Hop in a quantity I can manage even while paying more.

[JProulx]

Flying Monkey Matador is on the shelf today @ $10.95/750ml. I enjoy this beer, and apparently so do many others.

It will likely fly off the shelf, but not into my hands. Being the only serious beer-drinker at home, the price-point is too high: At 11% ABV and 750ml, it's not for me, unless I can find out from another BT thread on how to "keep" the beer after opening.

I would rather have it at Bar Hop in a quantity I can manage even while paying more.

This is precisely my problem with bombers. It forces you to purchase in quantities that anticipate sharing. It typically has a higher price per oz, for that privilege.

I would much prefer buying smaller bottles. I would pay a higher price-per-oz for smaller bottles, to be honest, if the cost-per-bottle was lower. It's worthless for me to get large bottles that I can't seal and only very rarely have somebody to share with. I won't be buying Matador for this reason (except on tap) and I didn't buy GLB RIS for that reason (unless I can find it on tap).

[Kel Varnsen]

It will likely fly off the shelf, but not into my hands. Being the only serious beer-drinker at home, the price-point is too high: At 11% ABV and 750ml, it's not for me, unless I can find out from another BT thread on how to "keep" the beer after opening.

I am getting to be the same way. I have found that drinking something in the 750ml range if it is 8% or higher will lead to me having a massive headache the next morning. The only way I have found to counteract it is to drink a ton of water, which means I have a ton of liquid in my stomach and feel super full. And since I never know when I am going to get a headache like that, it seems I can only drink these beers on the weekend.

[cattersley]

It will likely fly off the shelf, but not into my hands. Being the only serious beer-drinker at home, the price-point is too high: At 11% ABV and 750ml, it's not for me, unless I can find out from another BT thread on how to "keep" the beer after opening.

I am getting to be the same way. I have found that drinking something in the 750ml range if it is 8% or higher will lead to me having a massive headache the next morning. The only way I have found to counteract it is to drink a ton of water, which means I have a ton of liquid in my stomach and feel super full. And since I never know when I am going to get a headache like that, it seems I can only drink these beers on the weekend.

http://en.wikipedia.org/wiki/Milk_thistle

Health food store, pharmacies, Costco, hangover be gone, a couple before starting, a couple before bed with a glass of water.