Factors Affecting Wine Bottle Price
Why is this so? There are numerous factors that go into determining wine bottle price. Letâs take a look.
- Wine bottle cost. The most obvious and impactful factor affecting wine price is wine cost. Because retail and restaurant markups are first based on the wholesale price. The cheaper companies acquire their wine, the cheaper theyâre able to price it.
- Operational and overhead costs. Restaurant operations arenât cheap. Neither are overhead expenses. And they also vary among restaurant concepts and types. The more expensive it is to run a business, the higher the wine markups may be to compensate for it. On the other hand, the lower the restaurant expenses, the lower wine can be priced.
- Labor cost. Similar logic here as with operational costs above. Businesses have to make up for large, expensive workforces. Often that takes the form of higher prices. Wine prices, in this case. And the opposite is also true. A small cafe with 3 employees may have some downright reasonable wine bottle prices.
- State and local laws. The tax rate for alcohol varies between states. Washington state, for example, has the highest alcohol tax rate at $32.52 per gallon. While Wyoming and New Hampshire effectively have no tax on alcohol. This also affects wine price.
This is why itâs so important to learn how to manage costs for restaurant businesses. Investing in some of the best accounting software for restaurants is a great way to do this.
Is It Easy To Ship Wine
Alcohol laws vary from state to state. Some states permit wineries to ship directly to consumers, while others prohibit it entirely. Some states fall in the middle, allowing wine to be shipped to customers within the state but forbidding shipments from out-of-state. This means your ability to ship wine will be limited not just by the state your business resides in, but also the states where your customers are located.
Do Old Whiskey Decanters Have Value
If anything, old whiskey decanters have the same price trend that other antiques follow. When the interest in them lessens, the price also lowers.;
Design always seems to dictate the cost of the decanters, whatever their age may be. For example, a 1970 whiskey decanter that is plain to the site used to sell at $245, but after a time, it sells only at $221.
Another dismal sale is Silver and Cut-Glass Claret Jug. Dating back to 1887, the jug dropped 52% from the $1,450 price. Despite its craftsmanship and excellent condition, this Victorian jug still lost so much of its value.;
Another is the number of units produced and still available in the market and the decanter state. Chipped or cloudy decanters fetch a lower price than its counterpart that was kept in pristine condition.
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Feature Wines That Are Going Unsold
As a restaurateur, you can use some basic marketing tips and tricks that all retail stores use. What do stores typically do when they have over-ordered too much of a particular product, or if a product is not selling nearly as well as originally anticipated? Thats right they run special promotions designed to move that product. The easiest strategy is simply marking down the item to a breathtaking price that consumers simply cannot resist.
You can borrow this same tactic for your restaurant. For example, you could decide to feature wines that have been sitting in inventory for too long. One easy way to do that is by offering it by-the-glass , to encourage people to try it first before ordering a full bottle. Another easy way to do this is by marking down the bottle to a breathtaking price . A customer who ordinarily only orders Pinot Noir from Sonoma, for example, might be tempted to order a bottle from Oregon, Washington State or another wine region in California.
Storing It On Your Own
The biggest advantage of storing your wine on your own property is being able to access it whenever you please. However, to age properly, wine needs a cool, relatively moist environment. The ideal is 55 degrees Fahrenheit and about 60% relative humidity . While that might sound like the lowest level of your house, its never a good idea to store investment-grade wine in an unfinished basement. The risk of mold, moisture, and temperature damage is simply too great.
Instead, invest in an airtight, climate-controlled wine cellar capable of holding several hundred bottles. Costs vary widely:;Wine cooling units cost at least $1,000 and range up to about $10,000. Airtight doors cost $1,000 to $4,000, racks cost $2 to $15 per bottle, and flooring costs at least $5 per square foot.
If your cellar isnt attached to your house, you may also need a security alarm and motion-sensing lights .
Finally, any sizable wine collection needs specialized wine collection insurance;to protect it against fire, flood, earthquake, shipping damage, certain natural disasters, and other perils. Coverage costs typically start at $0.40 per year, per $100 of wine, but can exceed $1 per year, per $100 of wine, depending on factors such as security and your homes vulnerability to natural perils.
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Train Servers And Host Staff Wine Tastings
A knowledgeable staff is the key to increasing your bottle sales, but make sure that your training is effective. Wine is an incredibly complex industry, and servers can easily become overwhelmed if you try to present too much information at once. Instead, provide basic knowledge regarding grape varieties and regions. Depending on your wine list, you may want to provide more detailed information to your staff when appropriate.;
Training your staff on how to sell wine will require patience and ongoing refresher training sessions.
Another great way to get your staff more familiar with your wine selection is to host staff wine tastings. You may offer three tastings of the same type of wine: one rich, one unoaked and a third less expensive option. These tastings will give your servers the opportunity to experience the differences between each wine and to become familiar with the characteristics of the grape.;
How To Sell Your Wine At A Bricks And Mortar Auction
If you want to sell your wine in-person, auction houses are a great place to start. Auctions tend to provide a thrilling experience that you may not otherwise have with a traditional sale.
How it works:
There are a number of fantastic auction houses to choose from that have well-established audiences.
All auction houses will require you to send your wine to them for it to be valued and condition checked. This is to determine whether the wine meets the auctioneers standards. Check out our checklist to see what types of things they will be looking for.
3. In the hands of the auction house
Once the auction house has your wine, they will inspect it, value it, and add it to their auction catalogue. They will then market your wine to its audience to create an active and buzzing auction.
Pros
- Its easier to sell your wine at an auction house that has a huge audience. They are more likely to accept all types of wines, in a range of sizes and vintages.
- Your wine is very likely to sell with an auction house with a big audience.
- Its a secure method of selling your wine; if the sale does not happen, you can usually have it listed in another auction, or simply returned back to you.
- The auction house can market your wine, which could potentially increase your return.
- The legal side is entirely covered; you wont have to fight any battles about shipping regulations or insurance coverage. This will be organised by the auction house.
Cons
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Best Ways To Sell Your Wine
So what are the best ways to sell your wine online? We’ve already shown you the best places to buy wine online, but those aren’t the sites where you will be selling yours.
You may know that selling wine is not necessarily as easy as going on Craigslist or eBay. In fact, there are certain hoops you need to jump in order to do it legally. To find out more about how to sell wine and sales laws, keep reading.
These Are Qualities That Tend To Increase The Value Of Wine On The Market The More Of These Your Wine Has The More Valuable Its Likely To Be:
A wine that doesnt have any of these qualities likely isnt worth selling on the secondary market, whereas a wine with all of these qualities will be among the most valuable vintages in the world. For instance, grapes that come from the best terroirs in Burgundy sell for five times the price of grapes grown in less desirable vineyards in the same region. Additionally, critics who give a wine a perfect score will increase that wines value by as much as 45 percent, sometimes more. You can highlight these factors to pique a buyers interest.
Most auction houses and professional wine sales platforms prefer to sell bottles that come from good storage conditions and have excellent provenance. This is why storing your wine professionally is better for your investments than storing in a home cellar. Wines stored under bond will give you an even greater profit. When you store under bond, you not only prove that your wine is authentic, but you avoid taxes after the sale. VAT and duty tax for wine can reach more than 20 percent of your bottles total value. This means that youll make at least 20 percent more profit by selling your wine under bond. However, its not as common to store wine under bond in the United States as it is in Europe.
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Want To Sell Your Bottles Of Whisky And Fine Spirits Direct To Experts
Simply send us your photographs and well reply with a free;valuation.
We are known for our incredibly wide range of exceptionally rare bottlings, particularly those from and of sought-after Scotch single malts such as Bowmore, Laphroaig and Springbank.
The Whisky Exchange is the best buyer for your old and rare spirits, no matter whether you have a single bottle or a full collection.
We are experts in our field and provide free valuations on bottles that reflect their market value. Our prices often beat those achieved at auction, even before the commission you would have paid at auction is factored in. We pride ourselves on our transparency and there are no hidden fees or commission charges to factor in the price we quote is the price we pay.
Unlike many sites, we are the direct buyer of your bottles and not a middle man. There is no chain, so well never keep you waiting while we search for someone to purchase your whisky and spirits. This also means that we can guarantee 100% confidentiality, as all your details and those of the transaction are kept securely with us.
Our team of experts is based at our head office in Park Royal, London, however we can collect your bottles from anywhere in the world.
Exploit Your Wine Menu
Just having a wine menu isnt enough; you must learn to use it properly. Organize your wine list so that customers can easily find what they are looking for. Offer a variety of price points, and include some well-known brands along with the others. Rotate your wine selections frequently, always keeping on top of trends. Have enough wine menus on hand to accommodate every table in your establishment, and ensure that your waitstaff always puts one on the table after guests are seated. Include a good selection of wines under the $50 price point, and set aside a section for reserve wines.
Domaine De La Romanee
Next on the list of the most expensive wines in the world is the Romanee-Conti Romanee-Conti Grand Cru 1990.
A bottle of this vintage red will cost you $21,200, but according to experts, its well worth the investment.
1990 produced a fantastic wine, due to a well-balanced harvest, rich in plentiful healthy grapes.
Average Cost Of A Bottle Of Wine: Retail
Above are the commonly-accepted market segmentation of retail wine and their average retail price. The average cost of a bottle of wine depends heavily on the segmentation.
The breakdown of average price of wine:
- Jug wine. The average wine price of jug wine is just below $5. Jug wines make up about 12% of total retail sales.
- Popular-premium. The average price of popular table wine is between $5 and $10. This type of wine makes up 33% of total retail sales.
- Mid-premium. The average price of popular table wine is between $10 and $15. This type of wine makes up roughly 8% of total retail sales.
- Super-premium. Super premium wines have an average price of between $15 and $20. These make up around 8% of total retail sales.
- Luxury. Luxury or ultra-premium wines have an average price of over $21 and make up 7% of retail wine sales.
The above average prices of wine are based on 750ml bottles and adjusted for 2020 dollars.
Now, wine price at restaurants is another story.Â;
Big Hammer Wines Ensures You Get The Best Price For Your Wine Collection
Big Hammer is the;#1 online wine retailer in California. Our passionate customers want unique, special and limited wines.;;Trust us to properly evaluate your collection so you earn more.;
Unlike a wine auction, we provide estimates upfront, with no hidden fees or charges. Once your wine has been appraised and verified, you will be paid for the entire collection. No waiting for the wine to sell.
We make it easy and simple for you with a quick turnaround. Our unsurpassed network of buyers means a ready market. And our direct to consumer business model ensures sellers get better returns.
Taxes And Shipping Costs
In addition to any buyers premium you might have to pay, you can expect to shoulder taxes and shipping fees for your wine purchase.
Wine purchases are subject to state and federal excise taxes that vary by wine type and strength, as well as by jurisdiction and this is in addition to state and local sales taxes. According to the Bureau of Alcohol, Tobacco & Firearms , the federal excise tax ranges from $1.07 per gallon to $3.40 per gallon, depending on strength and type. State excise taxes range from $0.11 to $3.16 per gallon, depending on location, wine type, and wine strength. Excise taxes are typically levied on the seller and passed on to the buyer.
Shipping fees can vary widely, depending on your location, the sellers location, and the venue you buy from. The per-bottle fee generally decreases with selling volume, so a multi-case purchase is far more economical on this measure than the purchase of a bottle or two. For instance, for a single bottle, WineBid charges;$15 for standard ground shipping to most places in the continental United States. For an entire case, standard ground shipping within the continental U.S. is $33.
Are There Requirements For Selling Wine Online
Yes. No matter what business model you choose, its necessary to register your company and meet the legal requirements for selling alcohol online. Choose a business structure, register for taxes and then apply for licenses and permits.
If youre going to ship wine to another state, you will need a Direct-to-Consumer license. Beware that certain states, such as Utah, Alabama and Delaware, may not receive DTC wine shipments.;
Jeroboam Of Chateau Mouton
Originating from the vineyards of the richest family on earth, its no surprise that this bottle of wine has such an outrageous price tag.
With symbolism on the label indicating the victory of the Allied forces in the Second World War, the wine is said to be one of the best vintages of the last 100 years.
If you cant quite afford to buy a bottle, then why not try a glass for $8,631!
Ill take two then!
Educate Your Staff To Sell More Wine
Most experts agree that the key to selling more wine is by having a well-educated staff. In short, if your staff doesnt know it, they wont sell it. What this means in practical, day-to-day terms is that servers and bartenders will be much more likely to recommend a certain wine if they have tried it themselves.
The good news is that there are a variety of ways to educate staff members about your wine selections. The easiest and most inexpensive way is simply to send out a weekly email to staff members, describing some of the best wines to recommend to customers. However, the reality is that many people learn best by doing, and expecting people to read a long email, week after week, may not be the wisest strategy over the long term. Yes, it might give a slight bump to wine bottle sales for a certain week, but in order to see more than just a few incremental gains in wine bottle sales, you will need to commit to educational sessions at least one time per month.
And, while many people think of education only in terms of staff members, there is also an educational angle to explore when it comes to customers as well. For example, some on-premise establishments set up the equivalent of school programs for customers, educating them about the finer aspects of how to enjoy a particular wine. This can be especially useful when it comes to up-and-coming regions where wines are just starting to build buzz and attract attention in the mainstream media.
