NorCalAngler
Well-Known Member
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.