Want to buy an allocated bottle of whiskey?

How should retailers approach sales of limited/allocated whiskey?  And I’m speaking of truly limited bottles where demand far outpaces supply; not the stuff that Casker’s hypes like limited Whistlepig releases. Here are the 5 most common scenarios:

1. Just put it on the shelf at SRP and sell to some lucky bastard that just happens to walk in at the right time.  This is the tater’s dream and it does happen on a rare occasion.  The reality is this does not help the store to build long term profitable relationships with their customers.

2. Conduct some type of raffle/lottery system at SRP. Everybody that participates has equal shot. This does build some good will; even if you lose you at least had a chance. But taters know even these stores hold back a few bottles for their best customers.

3. Announce the release date and sell the bottles, generally 1 per person, to those who line up first.  This is the black Friday sales approach with overnight camping and it seems popular with a few big KY retailers.  Taters have taken to paying folks to line stand.

4. Stores only receive very small amounts of these allocated bottles.  It’s often based on their sales of that brand’s complete portfolio.  This may include cases of vodka or cinnamon whiskey brands they have a hard time moving.  So, they decide to make the most money they can on these allocated bottles. Stores have an idea of secondary prices and will set price even above this.  They know someone is likely to pay it; they usually do.  This approach infuriates taters.  Many seem to think this is price gouging. Whiskey is hardly a life necessity so price gouging laws do not apply.  Taters see the bottle and think they have come so close.  Of course, the only reason the bottle is still on shelf is because the price is so high. It’s capitalism, and consumers are free to take all their business elsewhere.

5.  Reserve these bottles at SRP for the best/most profitable customers. This could be a guy that buys $20,000 of wine a year but wants his bottle of Pappy once a year. Or in some states like Texas where bars/restaurants buy from retailers, this means taking care of these large volume accounts first.  Some stores a use point system that track your purchases.  In smaller stores owners are often working the floor and they know who their regular profitable customers are.

In my opinion, option 5 is by far the best approach for a store owner.   The tricky part is taters often think they are great customers of every store in town.

This covers tater reason 15.  Camp out overnight for Pappiez

2 thoughts on “Want to buy an allocated bottle of whiskey?”

  1. I’ve experienced 3 different ways to deal with this situation. PA has a lottery. My group has won bottles that we never would have had a chance at. I like it. Another store I deal with has a list. You put in your wish list and they call people on the list. But you need to know what you want. We have friended a third seller. I open every bottle he sells me in the store. That way he knows I am not reselling and he can taste it. We are educating him on bourbon and scotch. He has the benefit of our access to 170+ Unique bottles. Just did a scotch tasting so he can add to his store inventory.

  2. Another option is a charity auction. A store in the Boston area holds a silent auction for the allocated releases. They usually go for just around secondary. The store takes the retail price and the rest goes to a charity of the winners choice.

Leave a Reply

Your email address will not be published. Required fields are marked *