Looking at how wine prices are determined
Wine is like any other article of trade that exists in the market. The final wine price is determined by the production costs, the rarity of the product and its status and worth. Wine makers have a choice whether they produce their wines cheaply or at a high cost.
The price of wine is determined by several factors
- A winemaker may choose to create their wine using low yields or bigger volume high yields (a yield is a term used to measure the number of grapes or the volume of grape juice produced per area). This ensures the use of fuller flavored grapes.
- Some winemakers might make their wine in concrete vats or oak barrels which adds very much to the wine price.
- Some winemakers may choose to harvest their fruit themselves by hand to avoid the price of employing labour and the price of machinery.
All of these additional costs will be recovered in the selling price of wine when it goes to be sold. This explains why a wine from a quality producer will always be more expensive than wine from bulk production.
Are wines better value when they are cheap or expensive.
Quality wine costs more to make than lower quality wines. As is said above the growing and winemaking methods are more costly and therefore quality wines cannot be found at a low price. It has been known for some winemakers who are eager to make extra money on the sly to charge more for their wine than it is actually worth, however trustworthy merchants protect customers values by not purchasing wines from these kinds of people.
Although wine with more expensive wine prices tends to be known as being of better quality, the value is determined by the buyer, because everyones tastes vary.
Quality wines are often allowed to mature over a long time period so that they can reach their best and full potential. When time passes and the wine itself is drunk by consumers, those wine bottles that are left in small numbers become very rare and become worth a great deal of money, with its worth increasing year by year. Wines that are also rare and of great expense are wines that are made in small quantities each year.
At the end of the day, wine prices vary because of their production costs and time and material used to create them. If a persons passion is in quality wines, then they may be willing to pay for the rarity of an expensive bottle, yet for someone who is just in search of a bottle to go with a meal, less expensive bottles may be better suited it all comes down to individual taste.
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