No love for AG brewers

[poptarts]

Why are none of the big companies showing the love for AG brewing? I constantly get ads multiple times a week from Midwest, Northern Brewer, MoreBeer for beer kits and deals, I'm sure most of you do too. But, why are all the promo codes only valid on extract kits. The most recent one is buy 4 kits from Northern Brewer and get free shipping for earth day. Not the best deal but hey buy bulk save some shipping I would be down. But no, its "Buy 4 EXTRACT kits and get free shipping".
Just kinda frustrating that there are never any deals for all grain brewers. Always things like buy this and get a free crap 5 gallon pot or buy x and get a free darkstar burner etc, non of these deals apply to an all grain brewer. Just frustrating some times that the best deal I can get is spend 200$ and get a free carboy but don't forget you spot the shipping so its really spend 200$ and get 5$ off a regular priced carboy.
Not that I'm going to sit here and ask for handouts and everything its just annoying that they only seem to be targeting people new to the hobby. Anyway... end rant I guess.

 

[HumulusHead]

Probably because AG is already a good deal? The margins are already so low on grain the way it is.

Just my 2c

 

[atom]

and because most AG brewers don't use kits. NB did run a b2b1 free promo last summer on AG kits...

 

[poptarts]

Judging by the fact that people regularly get 2 row for 28$ in group buys and the cheapest on NB is 1.19 a lb I'm going to say there is defiantly not that tight of a margin.

 

[HumulusHead]

That's comparing bulk vs small quantities...


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[poptarts]

Pretty sure NB and Midwest buy in bulk

 

[Johnnyhitch1]

Judging by the fact that people regularly get 2 row for 28$ in group buys and the cheapest on NB is 1.19 a lb I'm going to say there is defiantly not that tight of a margin.

How can you compare buying 50pds @ .56c to 1pd @ 1.19

Bulk will always save you more money, as long as you have the space for said bulk material.

Also to answer your question, these "BIG" company's are trying to get beginner's to join the hobby with the specials/sales on extract kits. Its not that there trying to discourage AG buying. People who are advanced in this hobby will have 3-4 diff suppliers and rarely buy hops where they buy malts and so on.

 

[Johnnyhitch1]

Pretty sure NB and Midwest buy in bulk

...and you want them to sell it for cost while you buy a couple pounds at a time???

 

[poptarts]

...and you want them to sell it for cost while you buy a couple pounds at a time???

No... I was pointing out the margin isn't like 2 cents, they have room for a discounts and sales without loosing money. Obviously they have to mark it up or they wouldn't be in business.

 

[peterj]

Yeah, I've noticed that too. Kind of annoying. I've thought about doing a couple of the deals from northern brewer even though they are extract kits, but I just don't think I want 4 or 5 extract kits laying around. I only like to brew extract every now and then. There's probably a larger market for extract brewing, and maybe they figure if you're brewing AG they don't really need to hook you in with a deal.

That's comparing bulk vs small quantities...


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Yeah I think that's his point. He's saying Northern Brewer and the like buy in bulk for probably under $28 per sack and then sell it for $1.19/lb. About a 133% mark-up, which seems like a pretty good profit margin.

 

[HumulusHead]

If they would only sell all their grain for the bulk price they wouldn't make money was my point...


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[dlester]

PROFITS!!

Let this be a lesson: AG costs less, tastes better.


Cheers

 

[HumulusHead]

I'm saying bulk vs small quantities in terms of how he or you or I buy. Not the supplier. Obviously the supplier isn't going to pass on the savings for buying a few pounds of 2 row


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[poptarts]

Yeah, I've noticed that too. Kind of annoying. I've thought about doing a couple of the deals from northern brewer even though they are extract kits, but I just don't think I want 4 or 5 extract kits laying around. I only like to brew extract every now and then. There's probably a larger market for extract brewing, and maybe they figure if you're brewing AG they don't really need to hook you in with a deal.



Yeah I think that's his point. He's saying Northern Brewer and the like buy in bulk for probably under $28 per sack and then sell it for $1.19/lb. About a 133% mark-up, which seems like a pretty good profit margin.

This
Take the sale that is going on right now that I just mentioned. Buy 4 get free shipping. 4 AG kits with lets say 15lbs of grain each.. guess who just bought over 50 lbs of grain at not bulk prices? guess who just could have made a profit?

 

[nicklepickles]

PROFITS!!



Let this be a lesson: AG costs less, tastes better.





Cheers

Costs less? Hell yeah. Tastes better? Not really.


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[HumulusHead]

I'm just saying that they couldn't run a business if they sold at bulk pricing.

I'm in agreeance with you about wishing the AG kits would be included with these specials. I would def snag a few up if they were. Yesterday when I got that email from NB I went and looked into it and saw it was extract only and was disappointed. I then check out Midwest and same thing there. I'm just guessing that it wouldn't be fiscally responsible for them...

I ain't no business major tho. I just design roads.


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[HumulusHead]

This
Take the sale that is going on right now that I just mentioned. Buy 4 get free shipping. 4 AG kits with lets say 15lbs of grain each.. guess who just bought over 50 lbs of grain at not bulk prices? guess who just could have made a profit?

Yeah 60 lbs of grain. But unless they were all smash kits there could be ten diff kinda of grain within those 4 kits...


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[Trox]

Yeah I think that's his point. He's saying Northern Brewer and the like buy in bulk for probably under $28 per sack and then sell it for $1.19/lb. About a 133% mark-up, which seems like a pretty good profit margin.

Except they have to pay someone to divide that 50lb sack into 1 lb bags, buy the bags for the 1 lb of grain, mill the grains, pay for the elcticity to mill the grain, buy the labels, pay for the ribbon/ink for the labels, electricity for the label machine, and osme other costs I'm probably not thinking aobut. That profit margin tends to shrinkquite quickly.

 

[peterj]

I'm just saying that they couldn't run a business if they sold at bulk pricing.

Right, nobody said they should sell at cost though. We were just saying that it seems like they have a wide enough profit margin that they could still make a profit even if they did a few AG discounts. I wouldn't expect them to sell at or even very close to cost, because like you said they can't run a business that way.

 

[peterj]

Except they have to pay someone to divide that 50lb sack into 1 lb bags, buy the bags for the 1 lb of grain, mill the grains, pay for the elcticity to mill the grain, buy the labels, pay for the ribbon/ink for the labels, electricity for the label machine, and osme other costs I'm probably not thinking aobut. That profit margin tends to shrinkquite quickly.

Yeah, that's a good point. I have no idea what kind of overhead costs they're looking at. But all of those overhead costs would still apply to extract as well.

I'm thinking it's probably just that they're trying to hook in newer brewers. And maybe they sell more extract kits than AG kits.

 

[HumulusHead]

I agree with the hooking new brewers thing.

Extract is a helluva gateway drug!!!


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[Kingbogart]

The last all grain kit I got from Midwest consisted of all my grain milled and shoved in a plastic sack with a handwritten sticker that said "Belgian" on it. No special box or labels or printer ink, just a cheap Avery and a ball point pen. I can appreciate that there are employees, and electricity and all the other goodies. But those prices are applied to extract as well. Especially if they are measuring and pouring fresh LME.

 

[Hello]

OP: I thought about this too but then figured they cannot really do 50% off and make money but it would be nice to see maybe 10% off. I get 50% off once a month on a chosen recipe through my LHBS but you must buy on one certain day and their recipe. Still a good savings if you enjoy that beer.

PROFITS!!

Let this be a lesson: AG costs less, tastes better.


Cheers

LOL please. I would put good money on the fact that you cannot tell the difference providing both beers were brewed right. Comments like these really do make AG brewers look like they're full of themselves because they brew AG. I brew AG and frankly, I just can't agree with you.

 

[Malric]

I'm surprised that no one has mentioned the shipping cost of extract vs grain.

 

[fizgig]

Also extract ages poorly, grain really doesn't, they might put these on sale when they have a surplus of extract or are able to buy a bunch cheaply.

 

[Brewcycle69]

I've always heard there are many more extract brewers than all grain brewers, so that's their bigger market.

Does anyone know the percentage of extra brewers?

 

[Flipadelphia]

People buy all grain kits?

 

[gwaugh]

I think they sell far more extract kits than AG. I remember hearing on the Brewing Network years ago JP say Morebeer sold far more extract kits than AG.

 

[Teromous]

People buy all grain kits?

I brew all grain kits. What's wrong with that?

 

[poptarts]

I brew all grain kits. What's wrong with that?

Agreed