OnDemand WTP Pricing Research

Wine merchants warn of skyrocketing costs under new pricing scheme (with video) |The Vancouver Sun

A $40 bottle of wine in B.C. will cost as much as $56 next year if the province goes ahead with a new wholesale pricing system.

That was the warning Wednesday from Vancouver wine industry lawyer Mark Hicken, who feels the wholesale price model that takes effect on April 1, 2015 has serious flaws.

“I just don’t think this system can work and it will have a dramatic impact on retailers selling medium- to high-priced wines,” he said. “People already think wine prices are too high in B.C. and this could lead to some outrageous pricing.”

Hicken estimates the new wholesale pricing strategy will cause a $20 bottle of wine to rise to about $22 next year while a $30 wine will go up to as much as $40.

He said people who enjoy a fine bottle of $100 French Bordeaux will have to pay between $126 and $151 under the new system.

“There’s already a big problem with people leaving the province to buy higher-priced wine in Alberta, where prices are generally lower,” Hicken said. “This will literally drive the medium- to high-priced wine market out of British Columbia to Alberta.”

Read complete article here:

Wine merchants warn of skyrocketing costs under new pricing scheme (with video).

Post a Comment

WP-SpamFree by Pole Position Marketing