Trade prices on new wine?
Posted: Thu Feb 01, 2007 10:45 pm
The big advantage of buying at auction is that the individual can buy at what is, essentially, the trade price.
Look at the merchants retail prices and you realise that their markup is typically 40-60%
For new wine, that option is not open to the individual, but it's a pretty safe bet that the merchants are making a similar markup.
So when the merchant offers en primeur VP at 25 pounds a bottle, he's probably paying no more than 18 pounds for his stock.
After the import agent has taken his cut, and shipping costs are taken into account, the ex. VNG price is probably no more than half the offer price. For US consumers, it's even more extreme.
It's a very big difference...
The trouble with trying to beat the system and cut out the middle-men is that the producers don't want to go behind the backs of their appointed agents.
So if you say to a producer 'I want to buy twenty cases to ship to the UK - or US - or any other specific market' - their stock response will be: 'talk to X - he's our agent there'
But what if the buyer is stateless - or nominally buying for a market where there are no local agents?
- the producers want to sell their product, and if they can get a slightly better price, would they be that hung up about a flag of conveniance??
A van could be sent to VNG - loaded up with wine supposedly for Tonga - or wherever - and then directly distributed (legally) to FTLOP members worldwide.
Has this idea got legs? - or have I been sitting in the sun for too long? 8)
Tom
Look at the merchants retail prices and you realise that their markup is typically 40-60%
For new wine, that option is not open to the individual, but it's a pretty safe bet that the merchants are making a similar markup.
So when the merchant offers en primeur VP at 25 pounds a bottle, he's probably paying no more than 18 pounds for his stock.
After the import agent has taken his cut, and shipping costs are taken into account, the ex. VNG price is probably no more than half the offer price. For US consumers, it's even more extreme.
It's a very big difference...
The trouble with trying to beat the system and cut out the middle-men is that the producers don't want to go behind the backs of their appointed agents.
So if you say to a producer 'I want to buy twenty cases to ship to the UK - or US - or any other specific market' - their stock response will be: 'talk to X - he's our agent there'
But what if the buyer is stateless - or nominally buying for a market where there are no local agents?
- the producers want to sell their product, and if they can get a slightly better price, would they be that hung up about a flag of conveniance??
A van could be sent to VNG - loaded up with wine supposedly for Tonga - or wherever - and then directly distributed (legally) to FTLOP members worldwide.
Has this idea got legs? - or have I been sitting in the sun for too long? 8)
Tom
