New Report: The Falling Price of Wine and Liquor… Not at Restaurants!
Louisville, Kentucky – Wine and liquor prices are falling but that might not be apparent based on the prices of drinks at bars or restaurants. The price of alcohol in stores is down nearly 40% over the last 30 years. Compare that to the fact that the price of alcohol at restaurants and bars is up 80% over the same time period.
Liquor prices may be dropping but there are many reasons why the price of drinking at a bar is increasing so much. Labor and real estate costs are two of the more prominent reasons. The social aspect of drinking at a bar and the fact that when at a bar, the customer is a captive audience with no other options allow restaurateurs to continue to raise alcohol prices while purchasing continues to rise. The price sensitivity is very low, compare that to what happens in stores.
In stores, alcohol prices are down considerably because of increased competition and connectivity. With the proliferation of commercials and the internet consumers are becoming more and more price sensitive when buying in store. With a few clicks shoppers can easily find the best places to buy alcohol at the best prices. Some stores know this so they play the price game, lowering the price as much as possible to get people to come inside in hopes that they can then sell them on higher margin products.
Both of these trends have created a buying dynamic where customers are extremely price sensitive when buying alcohol in stores and much less so when they are out with friends at a restaurant or bar.
OmniGlassware is a glass decanter manufacturer headquartered in Louisville, Kentucky. The company owns and operates the brands, Prestige Decanters and DerbyCanter and is dedicated to manufacturing and distributing beautifully designed liquor decanters with high standards of quality and craftsmanship. For more information you can visit http://www.OmniGlassware.com
291 N. Hubbards Ln STE 172-192
Louisville, Kentucky 40207