Bourbon Pursuit

123 - Retail Pricing Wars... Part 2

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In Episode 109 we featured two retailers and discussed if there is such a thing as MSRP pricing and how square footage, location, loyalty, and clientele all boil down into how rare bourbon is priced and sold. Eric Darland, a buyer in the D.C. area sent us an email and told us we completely missed the mark. Eric gives insight into the legalized mafia that is distribution, allocation of store picks, and pricing fairly.

Show Notes:

  • Let's start with store picks and why are they so hard to get outside of Kentucky?
  • Do you think it's unfair that if a store sells more lower tier bourbon they should have a shot at choosing barrels?
  • Are you losing customers if your store doesn't have the top-tier stuff?
  • Do liquor stores really make that much money on limited releases by selling at 2-5x MSRP?
  • What's the difference is pricing in the D.C. area vs Kentucky vs NYC?
  • So you are firm believer in supply and demand and pricing accordingly
  • So your store reaps the benefit of getting 2-3x value. What happens when Buffalo Trace ups their cost to you by 2-3x? How are you going to feel?
  • Would new MSRP pricing end the secondary market? Would we see BTAC bottles lined on the shelf at $600 a piece if that happened?
  • Booker's Rye and WhistlePig Black Prince releases are good examples of proper pricing
  • Do distiller's even care? The ultra-premium is less than 1% of their actual revenue.
  • Do you think it's an unfair fight in regards to passion for someone that lives in KY vs DC?
  • Distribution is problematic. Some people suggested having Amazon being the centralized liquor store. What is an idea of how distribution can be fixed that levels the playing field across state lines?
  • What's the future of how supply will equal demand?

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