I was talking with the ubiquitous Giovanni Bertagnolli the other day about the prices Italian wine producers are demanding for their products. Actually, we were laughing and jeering more than "talking." The gist: What's wrong with these people? Don't they ever get out? Do they not realize that the world is in a crisis? And do they really believe China is going to pull them through this severe slump?
There are so many ways in which Italian wine producers are deluded and wrong-headed in their approach to pricing. Some of them are structural: if you set a price ex-cantina, that's the price you charge a restaurant or wine store too -- someone led me to believe that such is law in Italy. If not law, it's a pervasive custom.
A lot of it is personal, a pride thing. Or a desperate desire to claw back some of the immense investments they've made in everything from new vineyards to atmospheric tasting rooms. Or both.
Anyway, let's imagine a typical exchange with a producer who has her head in the clouds. (I use a female example only because there are so many good, earnest, ambitious young women making wine these days. This is not to imply that they're any more unrealistic than their male counterparts.)
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"So, Alessandra, this is a nice little red you have here. Clean. Good fruit. Good acidity and balance. Great with food. Should be excellent for everyday drinking. Quanto costa?"
"This is 14 euro."
"Scusa? How much?" I nearly drop my glass.
"Quattordici. Fourteen." She smiles prettily. "I use the best Alliers oak barrel."
"I'm glad you don't overuse the barrel. Otherwise it'd cost even more."
Alessandra's face darkens. "Good barrels are expensive. This wine is a good wine! They pay fourteen in Norway!"
"It is a good wine. But it's Sangiovese. From Emilia-Romagna. To sell in America, it cannot cost me 14 euros a bottle!"
Sulks. "Why not? It is biodynamic!"
"It would cost about 60 dollars retail! Maybe more! No one would ever buy this wine. Not one bottle."
She scowls. "You are making too much!"
I patiently explain exchange rates, shipping, taxes, warehousing, delivery and the wonders of the 3-tier system. Oh, yes, and the need for markups.
She ponders. Calculates in her head. Sighs tragically. "I give a discount. But no one must know!"
"OK. I'm glad you're getting realistic. So what's the figure? Three-fifty? I could live with four euros. It is biodynamic." I smile in an encouraging, you-can-do-it, avuncular way.
Alessandra steps back from the table. She folds her arms. Her eyes glint at me in the semi-darkness of the tasting room. "Ten. Not one cent less. Ten euro. If you buy five pallet."
I step back from the table, too. I sidle toward the door. "Interesting proposition, Alessandra. Thanks so much for your time. Let me go back and discuss this with my partners. I'll' get back to you in a couple of weeks." Which is me saying, You're nuts, lady. This is an end-cap wine. It's really worth 2.50. And lay off the damn wood!
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