Comments on: Connecting the dots: It all happened yesterday

By: steve

steve — Sat, 20 Mar 2010 22:53:35 +0000

Gail, give your comment 100!

By: Gail Puryear

Gail Puryear — Sat, 20 Mar 2010 19:12:53 +0000

The economics of wine might be better understood by reading my blog about the cost of wine. http://thegrumpywinemaker.blogspot.com/2010/03/no-wine-should-cost-more-than-3988.html
Wineries simply cannot pay growers a decent price and stay in business in today’s competitive market. Even small producers that sell direct to the public are having trouble generating foot traffic. Cheap wines are now $2.99, regular wines are $6.99, premium wines are $9.99, and ultra-premium wines are $14.99. If you can’t compete in this price range, you had better hope Steve gives you a 99.

By: CharlieOlken

CharlieOlken — Thu, 18 Mar 2010 03:14:18 +0000

Look out, Steve. More on the way.

Oh, never mind. The only real point to be made here is that the laws of supply and demand do affect the prices of wine in the long run, and wineries can do something about where they fall on the curve by the actions they take. That was your original point, and I agree with it.

By: steve

steve — Wed, 17 Mar 2010 23:24:49 +0000

I’m staying out of this commodity-economics thread because it gives me a headache. I can’t even balance my checkbook.

By: Peter O'Connor

Peter O'Connor — Wed, 17 Mar 2010 23:14:05 +0000

Reply to Charlie Olken: according to Wikipedia a “commodity is some good for which there is demand, but which is supplied without qualitative differentiation across a market. It is fungible, i.e. the same no matter who produces it”.