Shrinking Wine Bottles

The price of Fume Blanc has lagged behind the consumer price index since its introduction in 1972. Over the entire period from 1972 through 2007, the CPI increased by 396% while the price of fume blanc rose by 222%. It is not surprising that profits have been squeezed since costs are more closely linked to CPI than the price of wine.

The price of fume blanc in 2007, if fully indexed to the CPI would be $4.50 * 4.96 = $22.32

Would you be able to make money at that rate? How about $19.00, which would still be a bargain?

McCracken@informetrica.com

Wow, Mike - that's a great point and well researched. I'm not sure we've ever thought about our pricing on that level of detail before. I for one agree that our Fume is woefully underpriced. I'd like to see the price be in the $17 - $18 range priced in the same category as other high end Sauvignon Blancs. Thanks for this info!

Perhaps $14.50 sauvignon blanc doesn't need to be made in fancy French oak barrels?

Also, if you're always selling out, doesn't that say your price is too low?

I have to say, too, that if you're sauvignon blanc is as good as you say, why the heck are you selling it for under $20?

Oh, how I'd love to sell it for $20! But, with so MANY Sauvignon Blancs out there these days, (from all corners of the globe) it would be hard to raise the price without risking a dip in sales. And that is something we can't afford to do. (Frankly, it was a lot easier when we were the only game in town!!!)

As for barrels, ours is 100% stainless steel fermented. So barrels are not a factor in the production costs, which helps. Still, the wine is a steal, especially when you can find it in CA for even less. Here's a depressing fact. One retailer we know raised the price $1. That's right, $1. Sales came to a near halt. So, it seems we have an perception problem more than anything else 'cause the quality is definitely top notch.