Imagine this scenario; you’re at the store and want to buy a bottle of wine for dinner at home. You’re having steak and you want a red wine. This is the extent of what you know. There are a ton of varieties, regions, and styles of wine to choose from. And where your head spins are the price points. Is this $12 malbec not as good as that $25 syrah? Why is this cabernet sauvignon $9 while that one is $90? There is some noise to filter when it comes to price points, but here is a guideline of expectations as you go up in pricing tier.
<$10 – The domain of Three Buck Chuck, large volume wine, and hidden gems. The wines at this level are often value-oriented. They can play in this field because the wines can be a bunch of variables that can drive the price down. The wine can come from a winery that has massively huge volumes of wine. Or it comes from regions that can support large scale production. Or the winery owns all their capital goods and can afford a lower margin (often in Europe). At this stage, you can find good wine, but it will be tough to find a great wine. Good, however, is the pricing bar that many want to find in the wine they buy. It’s not too expensive and won’t be a hit on the wallet.
$10-20 – This is a magical level that plenty of consumer wants to play with. But here’s the thing; generally speaking, the quality bar is different at the $15 mark. Below, you’ll find good stuff. Above, you can come across great wines. How so? Because this is the sweetspot that the modern wine consumer wants to play in, so pricing has adapted. In this field you’ll start to find more layers, nuances, and subtleties in a good bottle. You’ll also have the opportunity to discover new regions that you may be unfamiliar. Portugal, Spain, Chile, and Argentina beckon.
$20-30 – This is a level where you can find some really interesting wine. Many in the industry feel it’s a growing category. Great wine can be had. A wine drinker has almost all of the wine regions of the world at their disposal. You’ll be able to get bottles with more aging, single vineyards, more fruit and provocative flavor notes.
$30-50 – We are now getting to the price category where wine nerds start to surface. Take all of the good that was mentioned at the previous tiers and now amplify them. The wine can border on magic. You’ll start to believe that notes of bacon fat or elderflower are present.
$50+ – You really love wine at this point. Or you want to impress someone.
$100+ – You and wine are soulmates. Or you want to impress someone’s parents.
$500+ – You probably read The Robb Report. And you probably have tasted a DRC. Most of us have only read about a DRC. Even more have no idea what a DRC is.
Disclaimer: wine pricing is a fluid and complicated area. Supply and demand is in play. Location has a hand in pricing. Know this; really good wine can be hand at any price point; it just requires a bit of know how to weed through it. And besides, it’s your palate, enjoy drinking with your tongue planted firmly in your cheek.