craigger64
Well-Known Member
"where'd the funny beer things go?"
dude, we're on page 57..........we used up all the funny
"where'd the funny beer things go?"
dude, we're on page 57..........we used up all the funny
Not if you understand economics. The price to make something has nothing to do with its value. If it did, brewers would be brewing saffron beer and we'd pay $1000 a 6-pack for it.
Midas Touch Golden Elixir is a beverage based on the residue found on the drinking vessels in King Midas tomb. Our recipe highlights the known ingredients of barley, white Muscat grapes, honey and saffron.
Not beer, but tonight at a local brew pub's Octoberfest there was a guy and his wife promoting their Honey wine that they will be selling in PA. I asked the guy if it was similar to Mead, and he said " well it is Mead, but we call it honey wine". Ok....I'm not a Mead guy, so maybe this is an excepted term in the Mead world. Then I say " That must require a lot of Pre-planning given how long Mead takes to age." (Now keep in mind I think he said they make something like 43 different flavors). " Nope, our honey wine is ready to be shipped 3 months after starting a batch."
Again....not a Mead guy, but raw ingredients to shipping in 3 months? He said they use a special yeast technique that has it ready to go that quick. I don't doubt he was telling the truth, but that seems awful quick to me.
For the life of me I can't remember the term he used when he described this yeast usage technique....think it was "S" something, but it was at a beer festival so I was already loosing my short term memory:cross:
Sure, this is always debatable...when do we move from short to long. Probably somewhere in the middle b/c of TONS of new entrants.You are assuming we're already in the long-term but we're not
Is it? I'm not convinced. Dang breweries are all private, tough to get good numbers.And the fact that beer is still a profitable business proves that.
Agreed...competitive advantage can be w/cost and/or revenue....some breweries are more profitable than others and not just because their costs are lower.
Thomas007 said:I think I paid about $3 for a bottle of this:
I thought that was kind of steep, but I guess I should be happy the DFH guys aren't economists?
Come on man, don't be a tool. Strawman argument.They understand economics. That's why they have to charge market prices, not a price based on whatever ingredients they decide to put into it. My point is that people who don't understand economics are arguing that the price of beer is based solely on the cost of the ingredients.
I was trying to dispel a myth about the free market as it applies to beer because I've found most of HBT to be populated with intelligent people interested in these things. But I'm now reminded that it is still the Internet where misinformation wants to stay alive.
The irony is that this thread is to make fun of people who aren't knowledgeable about beer. But most here want to remain ignorant about the economics of beer. If you don't care about the pricing of beer you're no better than the college student waitress who doesn't care what an IPA is.
TyTanium said:Sure, this is always debatable...when do we move from short to long. Probably somewhere in the middle b/c of TONS of new entrants.
Come on man, don't be a tool. Strawman argument.
How do you think the market sets its price? Even in situations with pricing power or price discrimination, marginal & avg costs drive optimal pricing.That's why they have to charge market prices, not a price based on whatever ingredients they decide to put into it.
Why are they stupid? Because YOU don't value it? Update: the cards actually had $400 on them and also gave other benefits and were sold for $450 by Starbucks. One person paid $1000 on eBay for one. http://money.cnn.com/2012/12/10/news/companies/starbucks-card-ebay/
I bet lots of people here pay prices for beer that a lot of people think is stupid. A man dying of thirst in the desert would happily pay $100 for the last bottle of water. Is he stupid too? I'd say he'd be stupid not to pay it.
TyTanium said:How do you think the market sets its price? Even in situations with pricing power or price discrimination, marginal & avg costs drive optimal pricing.
And I appreciate constructive debate...it sharpens all of our understanding.
TyTanium said:Funny thing I heard about beer last night:
At train station, headed home late (9:30pm)...see they have a sign for gumballhead...wahoo! "Sir, have any gumball left on tap? I'll take a pint"
"No tap, only bottles. $8.50."
"8.50 for one bottle of beer?"
"Yes"
"Dang. See ya"
Note: P>MC...captive audience; more like MR=MC and priced accordingly
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.
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.
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.
Where are the moderators when you need them???
Please start a different thread for your economics argument. Pretty basic thread manners.....
Sorry new to internets. He started it.Can you please PM each other with this economic shiz! Everyone else wants to tell and read funny stories.
Where are the moderators when you need them???
Please start a different thread for your economics argument. Pretty basic thread manners.....
Where are the moderators when you need them???
Please start a different thread for your economics argument. Pretty basic thread manners.....
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.
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!
Back for now, as long as the econ talk is over.
I can picture the music coming to a screeching halt and everyone just stops what theyre doing and slowly turns and stares at him. LolThe only time I drink BMC is when we play beer pong. We ran out of BMC one time and my buddy said to me “We can just use your homebrew” Needless to say we are no longer friends…….jk
I can picture the music coming to a screeching halt and everyone just stops what theyre doing and slowly turns and stares at him. Lol
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