Why are Rogue bombers such a rip off??

[klyph]

Like I said, I tried them, at a sale price, and they were worth it. But having experienced them, I now know they aren't worth the full price. I guess it's like test driving a high end car and being disappointed by its performance, even though it performs much better than your daily driver.

 

[riverfrontbrewer]

It is about what the beverage is worth not what you are willing to pay.
Anyone with me?

Forrest

NO definitely not with you...being a business owner you should prob understand that the sentence quoted above is a contradiction. ANYTHING in the market place is WORTH what someone is willing to PAY.

And as you stated earlier that Rogue should drop its advertising so that they can lower prices, can you set the standard for this advertiseless business model?

 

[Austinhomebrew]

And as you stated earlier that Rogue should drop its advertising so that they can lower prices, can you set the standard for this advertiseless business model?

I already do. I don't advertise. Never really have in the last 10 years. It allows me to give free shipping away.

Oops, I just advertised. But at no cost to the consumer.

Forrest

 

[EdWort]

It is about what the beverage is worth not what you are willing to pay.

Actually, it's what folks are willing to pay that determines a beverages worth.

As more folks balk at paying high prices, the price of the beer will come down, if that is, they wish to sell it.

Supply & demand determine price (along with the pesky government taxes that get in the way).

 

[Ludovico]

In Canada, Rogue 750ml are $10 each and American craftbeer singles are $4.50+... quit complaining

 

[Austinhomebrew]

Actually, it's what folks are willing to pay that determines a beverages worth.

As more folks balk at paying high prices, the price of the beer will come down, if that is, they wish to sell it.

Supply & demand determine price (along with the pesky government taxes that get in the way).

Not really. People can say I am not going to pay that much for a Mercedes. Then they just don't get one. Rolex doesn't say "Damn, have you seen Timex sales figures? We better lower our price drastically. The people have spoken."

Wine is priced at what the vinyard wants to price it at not what people say its worth. They will always find enough people to buy it for what they want to charge.

Breweries are plagued with low priced beer on the market so people think they shouldn't pay for quality.

The theory of supply and demand doesn't work for everything no matter how much you want it to.

A 2 liter bottle of Coke at the grocery store sells for $1.59. The bottle costs Coke more than the soda. Are people not going to buy it when they find out how much profit there is? Are they going to start trying to make their own Coke? No, they are going to pay it. It doesn't matter that the house brand of soda is 99 cents. People pay more because they value that Coke tastes better than Sam's Choice soda.

Forrest

Here is some bottled water for $40 a bottle. People buy it. He decided how much it sells for. It's water. Its $40.



Bling h2o – $40+ per 750 ml bottle


Hollywood writer-producer Kevin G. Boyd tapped into the bottled water market with an image approach. His water, Bling h2o, has been spotted in the hands of numerous celebrities and even at awards ceremonies like the Emmy’s, Grammy’s, and the MTV Video Music Awards.

The water is bottled in Dandridge, Tennessee, probably the least notable quality of the most expensive bottled water. Boyd’s approach to the bottled water market is as extreme as the limited edition bottles themselves. They come frosted, corked, and boasting hand-applied Swarovski crystal. Bling H20 boasts that it has won the gold medal at the Berkely Springs International Water Tasting Festival with its nine-step purification process. If you are a water elitist, be prepared to spend $40-60 for a 750ml bottle. If you are buying your expensive bottled water at a club, be prepared to spend more.

 

[EdWort]

Not really. People can say I am not going to pay that much for a Mercedes. Then they just don't get one. Rolex doesn't say "Damn, have you seen Timex sales figures? We better lower our price drastically. The people have spoken.".

So what happens when you have run out of people willing to pay your price?

Do retailers sit on it, keeping capital tied up on stagnant inventory?

Nope, it gets marked down so it will move. It's no different than any retailer wanting to move inventory that does not sell. They lower the price and keep lowering it till someone decides to want it more than they want the dollars in their wallet.

Niche markets are great if you can tap them with a product and no competition willing to sell it for less.

 

[olllllo]

There is definitely a movement in the craft beer world to limit production on certain beers to create exclusivity and buzz.

That's probably not so true with Rogue. I think that has as much to do with the OP being in TN and that perhaps being a newer market for Rogue than anything else.

 

[NorCalAngler]

Our perspective is too skewed to have a general population view of the craft beer market. We know how much the ingredients cost and we know how much labor/time is involved in the production of these beers. The difference maker in discussing beer vs. other products like the Mercedes mentioned above is we have access to all the ingredients and equipment necessary to if not duplicate the beer, get close enough to be satisfied. Lets see you try to clone that S550 AMG.

At the end of the day Rogue is going to charge what the market will bear above their gross cost to get it on the shelf. If their beer is priced too high it sits on the shelf and the retailer is unlikely to reorder at the same price if/when they get rid of the last bottle.

 

[jbrookeiv]

It is about what the beverage is worth not what you are willing to pay. Anyone that makes their own beer is going to have a different perspective on what beer is worth.

A masterpiece painting is only worth the price of the paint and the canvas.
Musicians should write and perform music for free.
I can make my own coffee at home for pennies.
I will do anything for a discount.

Think of all the beers you miss out on because you buy beer by price. To me it is like buying a car by the color.

Anyone with me?

Forrest

I am. I completely agree with your stance, Forrest. I regularly purchase bombers that cost ~$10 or more. If I enjoy that bomber, I feel as though I have gotten my money's worth.

I think you can compare beer directly to wine. Compare the flavor on a $10 bottle of wine and a $10 bomber and tell me which one is more flavorful and well made. Generally, the bomber is going to win.

I drink what I enjoy, and unfortunately (or fortunately), expensive beer is usually more flavorful. I tend to enjoy IIPAs, RISs, etc. Also, I love to see all the new, interesting beers popping up and will generally try them.

At the end of the day, does it matter? Buy what you like and enjoy it.

 

[Zamial]

Our perspective is too skewed to have a general population view of the craft beer market. We know how much the ingredients cost and we know how much labor/time is involved in the production of these beers. The difference maker in discussing beer vs. other products like the Mercedes mentioned above is we have access to all the ingredients and equipment necessary to if not duplicate the beer, get close enough to be satisfied. Lets see you try to clone that S550 AMG.

I agree. This still is not including the obvious things like the neat story/description on the back of the Stone or the real ingredients list + food pairing info on Rogue.

Then lets look at the label, painted on and some are pretty neat looking as far as the "art" goes. I turn (or try to) all these bomber glasses into pint-ish glasses. I get TONS of complements on them. (The how to is in the DIY section.) So, I do get the max "bang for the buck" and even if I did not how many people just rinse them out and keep them for decoration? I bet quite a few...

 

[humann_brewing]

well, you are across the country from where it is made. rogue 6/packs are $10 here and bombers are anywhere from 4-6 and the imperials are obviously more. I do know when I visit Oregon, they are significantly cheaper close to the source.

 

[mysteryberto]

I've been to the Rogue Brewery in Newport and in the gift shop bombers were $4.75 if I remember correctly. Rogue and Stone six packs are around $10 here. I live in Oregon and most somewhat local beers Bridgeport,Widmer,Deschutes, Sierra Nevada are around $6.48 to $8 a six pack.

Almost all the bombers I see are around $4.50-5 each. I find the best way to try new beers is to go to beer festivals. I've tried beers at festivals that go for $10+ a 22oz that I didn't like at all.

 

[Austin_]

The how to is in the DIY section.:

Do you have a thread title or direct link? I tried searching and couldn't find it.

 

[jbrookeiv]

Do you have a thread title or direct link? I tried searching and couldn't find it.

+1

 

[Austinhomebrew]

So what happens when you have run out of people willing to pay your price?

Do retailers sit on it, keeping capital tied up on stagnant inventory?

Nope, it gets marked down so it will move. It's no different than any retailer wanting to move inventory that does not sell. They lower the price and keep lowering it till someone decides to want it more than they want the dollars in their wallet.

Niche markets are great if you can tap them with a product and no competition willing to sell it for less.

You don't run out of people willing to pay the price because you manufacture or order to meet the need which will always be there.

If you don't over manufacture or order too much there is not an inventory issue. Problem solved.

One brewery made a top of the line malt liquor and it came with its own paper sack. The bottles sold for $7.99 per 40oz. They were sold before they were even made. The media got all pc and wanted to imply that only poor people drink malt liquor and that they were charging too much. It was funny to see the media make a sweeping generalization without saying it directly.

If you only manufacture to demand you can charge what you want. Rogue can charge what they charge because they make beer to demand. Demand will always increase for them. No need to lower price.

Forrest

 

[Austinhomebrew]

At the end of the day Rogue is going to charge what the market will bear above their gross cost to get it on the shelf. If their beer is priced too high it sits on the shelf and the retailer is unlikely to reorder at the same price if/when they get rid of the last bottle.

If their beer is priced too high, I would say apparently this city doesn't appreciate the beer. So, lets pull out of that city and sell it over here in the neighboring town because they can't get enough. We keep selling out in that town.

No need to lower the price.

The too much supply / have to lower the price idea relies on a massive surplus. This is not going to happen with a brewery if they are smart. I would bet they are close to capacity.

There is a local brewery that has an $8 12 oz bottle. They can't make enough.

Forrest

 

[humann_brewing]

If their beer is priced too high, I would say apparently this city doesn't appreciate the beer. So, lets pull out of that city and sell it over here in the neighboring town because they can't get enough. We keep selling out in that town.

No need to lower the price.

The too much supply / have to lower the price idea relies on a massive surplus. This is not going to happen with a brewery if they are smart. I would bet they are close to capacity.

There is a local brewery that has an $8 12 oz bottle. They can't make enough.

Forrest

thanks for the economics lesson

 

[Austinhomebrew]

thanks for the economics lesson

By your smiley face , you are probably saying that I am stating the obvious. I thought it was obvious too.

Forrest

 

[Zamial]

Here is that link: https://www.homebrewtalk.com/f51/diy-tumbler-beer-bottles-189996/

Sry about the delay I am at "work"....

 

[NorCalAngler]

If their beer is priced too high, I would say apparently this city doesn't appreciate the beer. So, lets pull out of that city and sell it over here in the neighboring town because they can't get enough. We keep selling out in that town.

No need to lower the price.

The too much supply / have to lower the price idea relies on a massive surplus. This is not going to happen with a brewery if they are smart. I would bet they are close to capacity.

Production businesses must forecast ingredient purchases, equipment, and labor so there are some issues with your production to demand, especially with new styles within a portfolio and with increasing competition. Long-standing beers within a portfolio would be much easier to manage because production and demand have smoothed out over time. Rogue makes a great chocolate porter, which hasn't been rivaled by many in the craft brew scene... yet. What if Rogue is in the middle of a batch of chocolate porter to meet current demand and then an East coast brewery comes with a chocolate porter with a lot of fanfare and cheaper distribution at $1 less per 22oz and Rogue finds their porter sitting on shelves and orders drop? This isn't really a hypothetical because I bet it happens to every brewery out there. Point being, pricing is critical and it's not as simple as "let's stop distribution in this city and focus on this one instead." That involves more forecasting, revamping production numbers, inventory management, etc. It's very complicated and supply/demand is very much in play.

 

[Austinhomebrew]

Production businesses must forecast ingredient purchases, equipment, and labor so there are some issues with your production to demand, especially with new styles within a portfolio and with increasing competition. Long-standing beers within a portfolio would be much easier to manage because production and demand have smoothed out over time. Rogue makes a great chocolate porter, which hasn't been rivaled by many in the craft brew scene... yet. What if Rogue is in the middle of a batch of chocolate porter to meet current demand and then an East coast brewery comes with a chocolate porter with a lot of fanfare and cheaper distribution at $1 less per 22oz and Rogue finds their porter sitting on shelves and orders drop? This isn't really a hypothetical because I bet it happens to every brewery out there. Point being, pricing is critical and it's not as simple as "let's stop distribution in this city and focus on this one instead." That involves more forecasting, revamping production numbers, inventory management, etc. It's very complicated and supply/demand is very much in play.

I see your point but the people in this thread are saying that the customer is dictating the price. But in your example, another brewery is *trying* to dictate the price.

What will happen is the people that like Rogue Chocolate porter will try the new beer. They will judge it by Rogue as a standard. It will pass or fail. Most will go back to Rogue because since it costs more it is perceived to be of better quality.

They have the ability to match demand and make quick adjustments. It is not like it is a Slap Chop. Make a million of them in China. Saturation point hits at 750,000 and now they need to lower the price.

Forrest

 

[NorCalAngler]

Isn't another brewery always trying to dictate the price? I can't think of a single brew that stands alone without competition. The customer is a third party in this price dictation because the competitor only dictates the price if the consumer decides their beer offers more/the same for less. Even the crazy dead animal 40%+ ABV brews have a competitor vying for the biggest beer crown.

 

[humann_brewing]

By your smiley face , you are probably saying that I am stating the obvious. I thought it was obvious too.

Forrest

a little of both but still good to point out either way.

 

[Germelli1]

a little of both but still good to point out either way.

You have an amazingly huge sig haha

 

[olllllo]

I've always had the theory about Rogue that their demographic skews a bit older than some other crafts. Things that I used to think were a rip off in my 20's are a better deal in my 40's.

 

[EdWort]

I've always had the theory about Rogue that their demographic skews a bit older than some other crafts. Things that I used to think were a rip off in my 20's are a better deal in my 40's.

Yep, it's all about disposable income..

 

[lamarguy]

Things that I used to think were a rip off in my 20's are a better deal in my 40's.

Disagree - strip clubs are still a rip-off in my 30s.

 

[joel4482]

So I was in the beer store today perusing the beers and was looking at the Rogue bombers. I've never bought them as my local store sells them for $6.89ea so almost $3.50 a beer. Then I noticed the only 12oz'ers they sell are the Dead Guy Ale which is $11.50 per 6 pack or $1.90 a beer, the also have bombers of DGA for $6.89 each. Seems most brands are consistently priced from bombers to 6'ers but Rogue is not. Is it just my local stores ripping me off or does Rogue just think they're special in the bomber market?

The 22oz are a little more expensive because of the bottles. You'll notice that stone and rogue are a little more expensive because the bottles are painted, which cost significantly more than paper labels. 6'ers are paper labels at rogue which explains the inconsistency in price from 12-22oz. $6.89 still seems a little higher than average for a 22oz