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Old 12-13-2012, 05:19 PM   #581
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A colleague of mine, in all earnest, about a batch of beer I brewed for my office Christmas party:
"oh you actually brewed this beer? I thought you just bought the beer and changed the label"

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Old 12-13-2012, 05:19 PM   #582
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The market sets its price the way all markets do. Imagine yourself selling widgets for $1 and people are flocking to buy them that you can't make them fast enough. You'll quickly realize you should raise your price. When you raise it so high that you have widgets left over, you'll lower your price. And you'll constantly repeat this as supply and demand fluctuate. Your grocer selling beer does the same thing, only they have lots of experience to set the initial price more accurately.

The cost of producing the beer never enters into the market's pricing. The grocer doesn't call the brewer and ask for the marginal cost of the beer. The grocer simply knows what their market will pay. Sale pricing is evidence that the grocer made a mistake, not that the contents of the beer changed.



And the same bottle costs less elsewhere (even though the contents of the bottle are unchanged). And notice that he didn't have to pay it. Enough people do that and the price will drop (even though the contents of the bottle are unchanged). This is what most people misunderstand, they think sellers somehow can force people to buy what they're selling. If they had that power, why isn't that bottle $10 or $1000 or $1000000? Because prices (in a free market) are set solely by supply and demand, not by things like cost of ingredients.

Again, if beer was priced based on cost to make it, why aren't brewers trying to spend more money to make a beer rather than always trying to cut costs? Because they don't have the luxury to set price based on their cost.
Where'd you learn econ? I think this post speaks for itself and does not merit a rebuttal.
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Old 12-13-2012, 05:35 PM   #583
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Where are the moderators when you need them???

Please start a different thread for your economics argument. Pretty basic thread manners.....

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Old 12-13-2012, 05:49 PM   #584
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Originally Posted by troyh View Post
The cost of producing the beer never enters into the market's pricing. The grocer doesn't call the brewer and ask for the marginal cost of the beer. The grocer simply knows what their market will pay. Sale pricing is evidence that the grocer made a mistake, not that the contents of the beer changed.
No. Sale pricing is a direct result of the manufacturer offering an ad allowance to the retailer and is willing to cut into their profit for the sale period in order to showcase the product to the market.

Back on topic, though... I heard today that people were buying Westy 12 for $15 a 33cl bottle! Ha!

(Irony of my "funny things" comment intended)
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Old 12-13-2012, 05:54 PM   #585
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Can you please PM each other with this economic shiz! Everyone else wants to tell and read funny stories.

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Old 12-13-2012, 05:55 PM   #586
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Troy, don't pm me again. You want to keep making the same condescending insult to everyone reading this thread, do it public. I don't look down on a waitress, family member, friend, or anyone because they don't know our trivial beer knowledge. We're all beer geeks having a light hearted chuckle. You are not impressing anyone with your over inflated ego. Apparently everyone who knows what you are talking about, thinks you are full of crap. You are an internet troll and I've already wasted too much of my time on this.

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Old 12-13-2012, 05:58 PM   #587
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Originally Posted by conneryis007 View Post
Where are the moderators when you need them???

Please start a different thread for your economics argument. Pretty basic thread manners.....
Quote:
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Can you please PM each other with this economic shiz! Everyone else wants to tell and read funny stories.
Sorry new to internets. He started it.
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Old 12-13-2012, 06:01 PM   #588
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Where are the moderators when you need them???

Please start a different thread for your economics argument. Pretty basic thread manners.....
The way to get a moderator's attention is to click on the report icon (looks like a little red and white warning sign with an exclamation point in it) and tell us what concerns you about the post.
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Old 12-13-2012, 06:02 PM   #589
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Where are the moderators when you need them???

Please start a different thread for your economics argument. Pretty basic thread manners.....
Excellent point. Look for my forthcoming sticky on the magic of markets, supply and its determinants, and other astounding economic concepts, as applied to brewing.

But don't hold your breath waiting for it!
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Old 12-13-2012, 06:04 PM   #590
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Troy, don't pm me again. You want to keep making the same condescending insult to everyone reading this thread, do it public. I don't look down on a waitress, family member, friend, or anyone because they don't know our trivial beer knowledge. We're all beer geeks having a light hearted chuckle. You are not impressing anyone with your over inflated ego. Apparently everyone who knows what you are talking about, thinks you are full of crap. You are an internet troll and I've already wasted too much of my time on this.
Insulting other members isn't allowed in either the forum or via pm. If you receive a pm that you think is insulting or otherwise offensive, please feel free to forward it to a moderator.
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