Monday, April 5, 2010

In Vino Veritas

In the coming weeks wine buyers and speculators will start buying the 2009 vintage from Bordeaux but will not actually take possession of the final bottled wine for another two years. While this futures market is generally interesting only to a niche audience of wine enthusiasts and investors, there is a tradition that will be worth watching how it plays out this year. Once they set their price for their particular wine, the Bordeaux wine growers never drop the price regardless of the reaction - they will increase it if the demand is great but will never cut the price even when the demand is not there.

How many sellers of any product or service out there can claim to do the same? Given the fall in worldwide demand for wine last year due to the recession the growers will likely be especially careful in setting initial prices this year. Still, even if they end up setting them too high, in accordance with tradition, they will tough it out and hold the price. That takes some metal given that they have nurtured their product through all the variables that Mother Nature can throw at them all year.

So perhaps next time you are getting intense price pressure but really believe in the value of what you are selling, remember the Bordeaux vigneron and his/her determination to hold price and ask yourself why you should act any differently.

Then go buy yourself a nice bottle of Bordeaux to celebrate when you get your price and deliver the value to the client!

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