One Day Hop Sale - Austin Homebrew Supply - Page 4

**Austinhomebrew** · 09-18-2008, 03:14 PM

If we were to sell some of the hops that low it would be below our cost. We sell a lot of hops and we are buying next years hops now. The cost of these hops are 3 times as expensive as last years hops. We have been informed by our distributor that if we do not buy these hops at these prices, there will be only 5 different hops available next year. They are all spoken for. There are some stores that are still selling older hops that they bought at a lower price.
And there will always be someone who is willing to sell things below cost. It is not a matter of not being competitive. It is a matter of what I have paid for the hops we have. If everyone paid the same price for the hops then everyone could charge the same amount. I don't even get a discount for buying 3 tons of hops at once. The stores that do not sell as many hops will be raising their price once they go through the older hops. We have already gone through our older hops.

You should buy the hops where you can find them. Please keep in mind that you need to factor in the shipping charges the other places will charge. If you are already ordering some items from me, there is no additional shipping if you add on some hops. If you order just the hops from somewhere else you are paying for shipping twice and that will make the hops quite expensive. Consider what your delivered price will be. Most people don't consider the gas, tax, or shipping charges when making comparisons.

Thanks for you business, support and understanding.
Forrest

**BigKahuna** · 09-18-2008, 03:40 PM

Quote:

Originally Posted by Austinhomebrew

Thanks for you business, support and understanding.
Forrest

Forrest. You've been spending a lot of time defending yourself here lately. I say set your prices where you need to. Build your reputation with service (Which you have) and keep the HBT Discounts coming.

I just checked "My account", and I'll say that in the $724.81 that I've spent with you since May (When I placed my first order) I've had nothing but 100% to say about AHS! I have saved TONS of money on shipping and with the 10% discount you offered , along with basically competitive pricing. I say let the consumer beware. If you are not smart enough to factor in shipping costs, and average price per item over an order, Bummer For You.

and FWIW...I just checked, and the order I place at 9:00 am yesterday...is scheduled to deliver tomorrow morning by UPS! That's pretty Effing good by by standards....especially for flat rate shipping.

**Blue_Water** · 09-18-2008, 04:13 PM

Forrest,

I'm not arguing about your cost from your suppliers. Just stating that AHB retail hop prices have been quite a bit higher than other sources lately (including shipping charges).

I prefer to buy all of my brewing supplies from AHB.

Normally I would not post this type of note, I would just go elsewhere to buy products. However I appreciate AHB and want to give you some candid feedback from your customer's point of view.

As Bobby_M has stated above, capitalism works, and if there are significantly cheaper sources, the demand will shift to those sources. If the other retailer's quality is bad, then some of that demand will shift back to AHB. If the other retailers are liquidating product, and their prices start to go up once the 2008 crop comes in, then you'll be "spot on" with your prediction of the market. The outcome is TBD.

It might be worth mentioning on the website that your hops are the 2008 crop, hence fresher product. Maybe that will help the consumer understand the context of the pricing strategy.

I really appreciate you participating in this forum. Your passion for your business is obvious and the homebrew community appreciates that.

**Chriso** · 09-18-2008, 05:58 PM

Quote:

Originally Posted by Austinhomebrew

I am just basing the price on what the hops cost me. I will do a full look at what retail stores are charging and adjust the prices.

Just curious here: What do you define "retail stores" to be? Is B3 a retail store? Or are we talking brick-and-mortar LHBSes? Or does the fact that B3 have a brick-and-mortar store make them into a retail store? Is HopsDirect a retail store since they sell to individual customers? Same with FresHops? Or since they're online-only and sell just hops, not malt/equipment/etc, are they a specialty store and not a retail store?

Not trying to stir the pot... that sentence just sounded strange to me. I've stared at it a few days now, thought it through, and I still don't understand, so I'm trying to understand how you mean "retail".

Cheers! -c

**Austinhomebrew** · 09-18-2008, 07:02 PM

Quote:

Originally Posted by Chriso

Just curious here: What do you define "retail stores" to be? Is B3 a retail store? Or are we talking brick-and-mortar LHBSes? Or does the fact that B3 have a brick-and-mortar store make them into a retail store? Is HopsDirect a retail store since they sell to individual customers? Same with FresHops? Or since they're online-only and sell just hops, not malt/equipment/etc, are they a specialty store and not a retail store?

Not trying to stir the pot... that sentence just sounded strange to me. I've stared at it a few days now, thought it through, and I still don't understand, so I'm trying to understand how you mean "retail".

Cheers! -c

There are people on this forum that compare wholesale places with retail places on price.

There are places that sell grain and hops at wholesale prices to individuals and these are the same places where many homebrew stores buy thier supplies.

It is like comparing Home Depot's price on a drill compared to the price Home Depot pays for the drill.

Freshops and Hop Union are wholesalers. Comparing their price to a retail store price is Apples and Oranges.

There is also a grain wholesaler that people on this forum buy from at wholesale prices. I have no problem with that unless they try to compare a wholesalers price with a retailers price.

That is all I meant by retail price.

Forrest

**Chriso** · 09-18-2008, 07:43 PM

Thanks for clarifying, Forrest.
Freshops, Hop Union, HopsDirect, LD Carlson, North Country Malt = Wholesalers.
Williams, Northern Brewer, Midwest, B3, LHBSes, etc = Retail.
I appreciate it, and am on the same page now.

HBRunner · 09-18-2008, 08:53 PM

myself, If I think a price is to high for something, I just buy elsewhere...It's an option everyone has.......

For the most part, though, AHS gets all my business, and I have never had a problem.....

Chad

tarheels · 09-18-2008, 09:15 PM

what makes me a little mad is my LHBS bought there hops and the low price $20-$26 a pound and is selling and has been selling for many months at $3-$4 on once. Thats a $40 profit on a pound of hops.

BarleyWater · 09-18-2008, 09:39 PM

Quote:

Originally Posted by Austinhomebrew

There are people on this forum that compare wholesale places with retail places on price.

There are places that sell grain and hops at wholesale prices to individuals and these are the same places where many homebrew stores buy thier supplies.

It is like comparing Home Depot's price on a drill compared to the price Home Depot pays for the drill.

Freshops and Hop Union are wholesalers. Comparing their price to a retail store price is Apples and Oranges.

There is also a grain wholesaler that people on this forum buy from at wholesale prices. I have no problem with that unless they try to compare a wholesalers price with a retailers price.

That is all I meant by retail price.

Forrest

Wholesale prices aside, it still doesn't quite work out. I have purchased most of my ingredients from you, but have had to stop recently due to the pricing. I can get an order shipped to me from Midwest Supplies WAY up north, without flat rate shipping, for cheaper than an order from you before shipping. Not only have your hop prices gone up exponentially, but your grain has too, more than any other RETAILER that I checked. (Northern Brewer, Midwest Supplies, MoreBeer, Williams Brewing (hops only), The Beer Essentials, and my LHBS Homebrew Headquarters)

My last batch of beer that costs me $19 at Midwest, $23 at my LHBS, and $28 at Norther Brewer, costs $34 from AHS, all before shiping. Tack on shipping to any one of those stores, and you're still the most expensive store, Midwest $12 (not flat rate), my gas $10, Norther Brewer $8, Austin Homebrew $7. I love your store, your selection, and your relationship with us customers, but the prices are no longer competetive with most major online retailers.

The Pol · 10-26-2008, 01:59 AM

I have posted several price comparisons regarding my last three purchases for ingredients... nearly 100 pounds of grain, 30 oz of hops etc... and I can find no where that I can buy ingredients cheaper than Morebeer.
I admit, I make sure that I buy (2) brews at a time, so that I exceed the threshold for free shipping at Morebeer... but my last order was $62 at Morebeer, would have been $89 at NB, 87 at AHS, 71 at Midwest.
Everyone is selling hops at $2 an ounce except for a few large players, hop prices alone are enough to kill an order if you have say 3 ounces in there and you are paying a $2-$3 premium for them. Grain costs at some suppliers have gotten high as well, some over $2 a pound, while others are around $1.30/pound.
I understand that some suppliers have more adventagously positioned themselves with certain suppliers and benefit from lower costs... Morebeer obvioulsy has, as well as Midwest... props to them, they are reaping the benefits of these relationships as they are super cometitive when it comes to pricing. When people are losing tens of thousands in thier portfolios, the economics of even hobbies becomes more important.