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1. 

   njbruce
   Member

   Hi Bill,
   Continuing discussion form the UK Wine Forum, what's your view of the impact of websites like WineSearcher in raising the prices of fine wine - to the point where they the new high (price for a specific wine) becomes the new low (available anywhere in the market).
   While I use it a lot, I think Wine-Searcher may be turning out to assist merchants more than customers of fine burgundy. The lowest prices - often by some way - are found in France, the US (for some reason) and Belgium, and even then an apology for having just sold the last bottle is the most common reply to the enquiries WineSearcher invites. Merchants are now well aware of the going rate worldwide for a wine, and understandably adjust their prices accordingly. It's probably operating a little like the art market, where the last auction price often sets a new benchmark for an artist.

   Even the supposed member-owned "cooperative" Wine Society have told me on several occasions that the reason they have raised to market levels (however high) their release prices on those elite wines they hold back from EP offers - rather than offering them at a more favourable price for members - is that they suspect members will simply "flip" the wines. Yes OK market forces, bubble economy etc., but currently I can see no prospect of a retreat in the rising water table of burgundy prices.
   Nigel

   Posted 1 year ago #
2. 

   bill nanson
   admin

   Hi Nigel,
   I must admit I'd not given it much consideration, but I think you have very valid points. If I was a merchant, a modest sum might be okay but I wouldn't want to be 20-30% below the prices of all my competitors - assuming there are people willing to pay - so I'm quite sure I would use it to reprice my lists on at least an annual basis. That said, I actually have people who regularly send me emails telling me I shouldn't be giving all this content away free, do you think merchant 'clubs' are different when real money is involved - probably not, even without WS.

   I don't really use WS so much, preferring to buy as much as possible direct from the source - I realise that geographically I have a lot of advantages! When I did use it, it was for occasional things, and almost never taking the lowest price, rather the one that made the best logistical sense, though Burgundy rarely affords you multiple opportunites... I probably haven't made a purchase through WS for at least 4 or 5 years - that said, it has alerted me to merchants I wasn't aware of who I now have regular (once per year(?)) orders with.

   Re pricing; I'm not sure I'm in the vanguard, but direct allocations seem the last resort of scoundrels - or at least penny-pinchers like me. On a merchant/commerce perspective, parcels will seek out those markets who will pay - typically US and now Asia too in extra-good vintages - it is only a question of what happens when even those markets say 'no'; clearly that's bubble territory.

   I think the 2011 vintage will be very interesting to watch; currently they are balanced, pretty and elegant wines made from very clean fruit (hopefully no pyrazines will appear, but let's see...) perhaps 'lighter' than any vintage I can shake a stick at, but again super elegant and clean. Yields were reasonable so what excuse will there be for higher pricing? I'm sure they will think of something, but again, let's see...
   Best!
   Bill

   Posted 1 year ago #
3. 

   glenndhk
   Member

   Hi Nigel,
   I'm assuming you're talking primarily from a UK market perspective, as my experience as a Hong Kong-based wine merchant listing on Wine-Searcher is that the opposite force has prevailed: the exponential awareness of Wine-Searcher in this neck of the woods has driven the majority of Burgundy prices lower over the past 12 months or so. So I would claim that the typical regular wine consumer has been the clear beneficiary here.

   If I refer back to my price lists of 2010 and early 2011, if I was selling the same lines now the sticker price would be lower on all the regional and villages, and at least 50% of the 1ers.

   I will admit to raising my DRC R-C and Rousseau Chambertin prices in line with global changes and new auction levels: after initially setting my prices around the global average I often found myself the cheapest on W-S when checking several weeks later. But that's no different a reaction than when, for example, we're looking to sell property, is it?

   Posted 1 year ago #

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