How did they get to the prices of the "premium" wines in the United Club?
Jan 3, 2014, 5:39 pm
#16
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Also have to disagree with your statement about how companies price their goods. You state it has nothing to do with cost.
It's incorrect. Lets say, a company made widgets that cost 5 to make (a fact you say is irrelevant). Now lets say market bears 3. Is $3 going to be what they charge? They'd be out of business pretty quick.
With all due respect, it's just plain silly to say a products cost to make has nothing to do with the price.
It's incorrect. Lets say, a company made widgets that cost 5 to make (a fact you say is irrelevant). Now lets say market bears 3. Is $3 going to be what they charge? They'd be out of business pretty quick.
With all due respect, it's just plain silly to say a products cost to make has nothing to do with the price.
Now if you can make it for much lower than the competitive value based price, you are foolish to sell below market just because the cost is low. You price it to maximize your profit (and watching out not to encourage too much competition -- but that is a whole different topic).
Bottom line the market sets the price, not your cost to produce.
Jan 3, 2014, 7:45 pm
#17
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The pricing in lounges is always pretty whacky. I remember being in a Delta Sky Club this summer and they were offering a flight of 3 shots of Johnnie Walker, 1 each of black, gold, and blue, for only $25, which really is quite a good deal since normally I believe blue is not findable at that price point by itself
Jan 3, 2014, 7:49 pm
#18
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Jan 3, 2014, 11:52 pm
#20
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The pricing in lounges is always pretty whacky. I remember being in a Delta Sky Club this summer and they were offering a flight of 3 shots of Johnnie Walker, 1 each of black, gold, and blue, for only $25, which really is quite a good deal since normally I believe blue is not findable at that price point by itself
Jan 4, 2014, 4:23 am
#21
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The OP was not referring to wholesale pricing, or restaurant pricing. They (and I) were making a simple price comparison of a glass at the club, to a bottle at the store.
With all due respect, why does everything have to turn into a disagreement.
Jan 4, 2014, 5:50 am
#22
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Jan 4, 2014, 6:08 am
#24
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I highly recommend the Joel Gott Cabernet. That is well worth the money, especially when trapped at the airport
you can safely assume that they are charging for the glass what they pay for the bottle. That way, after the open the bottle & pour the first glass they break even. Then they either make money with the next 4 pours or throw it away if it spoils.
you can safely assume that they are charging for the glass what they pay for the bottle. That way, after the open the bottle & pour the first glass they break even. Then they either make money with the next 4 pours or throw it away if it spoils.
Last edited by ilovesprint; Jan 4, 2014 at 6:13 am Reason: edit
Jan 4, 2014, 6:15 am
#25
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Sorry, but I don't find your point clear at all.
I read recently an article on wine pricing at restaurants-and how they mark it up. The article posited that rest. that should earn your business should charge 2-2.5 times the price the consumer can purchase the bottle for themselves. Many places charge a lot more than that. So if you figure 4 glasses per bottle, UA prices appear to be very high albeit inconsistent. With a nice restaurant you could argue you are paying for the intangibles. You can not make the same claim at a crappy airport lounge...
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I read recently an article on wine pricing at restaurants-and how they mark it up. The article posited that rest. that should earn your business should charge 2-2.5 times the price the consumer can purchase the bottle for themselves. Many places charge a lot more than that. So if you figure 4 glasses per bottle, UA prices appear to be very high albeit inconsistent. With a nice restaurant you could argue you are paying for the intangibles. You can not make the same claim at a crappy airport lounge...
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Jan 4, 2014, 7:05 am
#26
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Also, last I checked there is no annual fee to attend at a restaurant. If there is to be a charge for "premium" wines then this inconvenient fact should certainly be factored in. The UA and US clubs are an embarrassment to the Star Alliance on many levels. At least at AA clubs if you are a status flyer from the alliance you get chits for the "premium" stuff - I'd certainly factor that into my decision of airlines if I was flying a lot.
Jan 4, 2014, 7:45 am
#27
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Jan 4, 2014, 7:47 am
#28
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Your "simple" assumption ignores the reality of economic pricing, as WineCountryUA has explained rationally.
We are disagreeing not because FT has changed (it has but not in this example) but because your basis is incorrect. Those who note "FT changed" are just being flippant.
Jan 4, 2014, 7:55 am
#29
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Because it's not that simple. That's akin to comparing the price of water at a bar to the 24-pack you get at home. In that scenario, I've seen almost a 25x markup.
Your "simple" assumption ignores the reality of economic pricing, as WineCountryUA has explained rationally.
We are disagreeing not because FT has changed (it has but not in this example) but because your basis is incorrect. Those who note "FT changed" are just being flippant.
Your "simple" assumption ignores the reality of economic pricing, as WineCountryUA has explained rationally.
We are disagreeing not because FT has changed (it has but not in this example) but because your basis is incorrect. Those who note "FT changed" are just being flippant.
I was simply agreeing with the OP, who pointed out the difference in relative price.
I give up. You win.
Last edited by nachosdelux; Jan 4, 2014 at 12:02 pm
Jan 4, 2014, 8:26 am
#30
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Last week in the UA Club, I wondered the same as the OP. The pricing seems arbitrary. The "premium" wines cost $12-15 per glass at the UA club, while the bottles retail for $10-50. This would be some wacky markup math.
As mentioned several times before, the UA Club price is what the market will bear. Many travelers feel that they are worth the "premium", so marketing it as such is a great strategy.
And, let's not forget drinking premium wine could be a strategy to impress whoever you are sitting next to.
With the exception of the Jordan Cab, I personally find the value of the "premium" segment lousy. The only thing "premium" of these wines is the premium you pay over the complimentary house wine. Which, by the way United will be paying for as well (est. $2-4 per bottle).
I personally would find a much lower "co-pay" (e.g. $4-6) more flyer-friendly. But then, I am already flying the friendly skies. It might be to much to ask for a 'friendly" club...
As mentioned several times before, the UA Club price is what the market will bear. Many travelers feel that they are worth the "premium", so marketing it as such is a great strategy.
And, let's not forget drinking premium wine could be a strategy to impress whoever you are sitting next to.
With the exception of the Jordan Cab, I personally find the value of the "premium" segment lousy. The only thing "premium" of these wines is the premium you pay over the complimentary house wine. Which, by the way United will be paying for as well (est. $2-4 per bottle).
I personally would find a much lower "co-pay" (e.g. $4-6) more flyer-friendly. But then, I am already flying the friendly skies. It might be to much to ask for a 'friendly" club...