Comments on: Wine prices are still too high

By: Carolyn Madson

Carolyn Madson — Mon, 12 Oct 2009 19:26:11 +0000

As an old friend of my family who had been in the business of selling his whole adult life said to me one day, “You can’t take margin to the bank!”

I have this posted over my office door and look at it every day on my way out to sell yet another bottle of wine.

By: Charlie Olken

Charlie Olken — Mon, 12 Oct 2009 15:24:58 +0000

Dave–

You have stated half of the reason why housing prices fell–the supply went up, but the other half of the equation is that demand for exsiting housing was pushing prices up. When incomes started to fall, and folks got worried the demand fell. Then prices fell, and all of the sudden, not only did the potential house buyers not want to pay beyond their means, but they lost the equity in their houses to be able to trade up.

There were underlying causes, but it was still supply and demand.

By: Dave Yuhas

Dave Yuhas — Mon, 12 Oct 2009 03:51:57 +0000

Everybody knows that housing prices are still too high, especially in Sun Belt places like Las Vegas, South Florida and certain parts of California. Prices won’t stabilize until demand equals supply, and supply was way overbuilt to begin with. So housing prices continue to fall. You can only conclude that they were too high to begin with, and must plunge further before the bottom is reached.

Supply and demand don’t explain housing prices. Google tulip mania bubble.

By: steve

steve — Tue, 06 Oct 2009 14:58:44 +0000

Gibson: “Write off the loss and get back to making slower but steadier money.” And better wine!

By: Gibson

Gibson — Tue, 06 Oct 2009 14:34:37 +0000

Steve,
Great subject for the times. When wine became so “fashionable” this end should have been predictable. The market got infected with the “I’m gonna impress somebody” bug and the gap between price and actual value got greater and greater. I mean the bigger the price, the more impressive. Of course, none of us in the industry could exist on the actual value(being what it cost to produce, bottle, and deliver) of our wonderful goods. But you are absolutely correct that we must get much closer. I think Champagne and Bordeaux have a lot of ground to cover. Hopefully, the closeout system will continue to crank up and everybody will overcome the greediness and pass the bargain to the consumer. Write off the loss and get back to making slower but steadier money.