I want to be able to support my local shop. I really do. I think it is important and a foundation to the health of our hobby. But how do I do it when their prices are so high. I was in a pinch for a 1/2"NPT M/M nipple and they charged over $10 a piece! ...
Advice and thoughts appreciated.
I think you should also support you local hardware store! Seriously, why are you buying common hardware from a LHBS. While my LHBS does stock harder to find but commonly needed in brewing hardware you would not even find a freaking pipe nipple there.
That said, lets talk a little about homebrew ingredient pricing. (
Disclaimer: I work Saturdays for my LHBS)
Most
small LHBS in the US buy all (or most) of their ingredients through one of four wholesalers; Crosby & Baker, BrewCraft, Brewmaster Inc. (not to be confused with Brewmasters Warehouse which is a LHBS), and LD Carlson. These wholesalers provide valuable services like repackaging specialty grains into 1 pound packages, hops into 1 or 2 ounce bags, or bulk chemicals into smaller packages. A lot of LHBS run with just 1 or 2 employees and simply don't have the time to do this themselves there is also the expense of keeping a scale certified for trade by the state which in my state is an annual inspection which you as a retailer have to pay for. Even with that my LHBS doesn't want to deal with someone coming back and saying we shorted them. As far as hops go keeping the equipment to do nitrogen purged heat sealed Mylar foil bags is another expense that makes more sense for a wholesaler to spread out over a much larger number of packages.
Grain: Many LHBSs don't have enough All-grain brewers to justify buying grain by the pallet (or their All grain brewers do group buys) and so their grain comes from the wholesaler as well, which has their own markup over Country Malt Group or Brewers Supply Group. That said my LHBS still manages to sell a 25kg(55Lb) bag of Wyermann Pilsner malt for $40 compared to $53.99 at AHS for a
40Lb bag of German Pilsner malt. (I understand they have to cover the flat rate shipping problem)
Hops: Some of your shops might still have inventory of certain hop varieties they acquired when hop prices were high. It is hard for a business person to stomach the fact that he might need to take a loss on that to move it now. My LHBS still has some '08 (and one or two '07) hops that they had to pay dearly for when hop prices were high. Fortunately most of the really common ones moved and they did lower the prices as new lower cost stocks came in. Also, some (one) of the wholesalers have not lowered their prices (or only slightly lowered them) since the run up a while back, if your LHBS is only dealing with that wholesaler they might be stuck and not even know that other wholesalers are cheaper (if you haven't established an account with them the other wholesalers are not going to give you their price list).
Yeast: It is hard to guess what special strains of liquid yeasts brewers might want. Some LHBS just keep the most common on hand a maybe do a special order once every one or two months to get brewers their more unusual strains. Other LHBS try to keep at least one of each available strain on hand in hopes that someone will buy it but invariably a strain or four will get past the expiration date. If your LHBS is only buying 20 (or less) vials/smackpacks a month (a lot of homebrewers still stick to dry yeast) you still buy through the wholesalers. Dry yeasts are easier since they keep longer so you keep 40-50 of the common ones (Notty, US-05) and 10 or so of the least common (WB-06, S-23) and somewhere in the middle for the others.
Misc hardware: On common stuff your LHBS is never going to beat the local big box store or McMaster. Heck if they even have pipe nipples they probably buy them locally and mark them up to cover the effort / inventory carrying cost. Worst case the LHBS buys hardware through one of the previously mentioned wholesalers which are hideously expensive. For specialty hardware they should get an account with Foxx equipment period. If the LHBS is buying special stuff through a homebrew wholesaler their getting ripped off maybe paying 3-5 times as much on some things.
I've spent entirely too much time composing this, got to get back to work.