The Price Game: Understanding MSRP and Secondary Market Pricing for Bourbon and Whiskey.

Some of you are new to the bourbon and whiskey world with the Price Game and understanding MSRP and Secondary Market Pricing. We have had several people ask for some input on how to hunt and know the limits within a reasonable budget.

The world of bourbon and whiskey pricing indeed involves several factors, and the dynamics you've mentioned reflect the complexities within the market. Let's break down these components:

1. MSRP (Manufacturer's Suggested Retail Price): This is the price the distillery or producer recommends to sell their product. It's essentially the baseline price that they suggest retailers use. However, the actual retail price can vary.

2. Retail Markup: The retail markup is the percentage added to the MSRP by the retailer to cover their costs and make a profit. The 6% legal limit you mentioned is a regulation in your local stores, but as you pointed out, many retailers mark up bottles beyond this. The markup percentage can vary based on several factors, including the product's rarity, demand, and local market conditions.

3. Secondary Market: The secondary market involves enthusiasts buying and selling bottles among themselves, often at prices higher than the original retail cost. This market exists due to various factors, such as limited releases, high demand, and regional availability. Some bottles become highly sought after, leading to price increases on the secondary market. Limited access or scarcity can drive up prices, and the secondary market provides a platform for enthusiasts to trade or purchase these coveted bottles.

4. Market Dynamics: The overall market conditions, trends, and the popularity of bourbon and whiskey can significantly influence pricing. For example, if there's a surge in interest and demand for a particular brand or type of whiskey, prices may rise accordingly.

5. Collectibility and Rarity: Some bottles gain value over time due to their rarity, collectibility, or perceived quality. Limited editions, special releases, or bottles from discontinued lines can become sought after by collectors, contributing to higher prices on the secondary market.

6. Global Variations: As you mentioned, access to certain bottles can vary globally. This global variation can impact secondary market prices as enthusiasts from different regions seek to obtain bottles not readily available in their local markets.

It's important for consumers to be conscious of these dynamics when navigating the bourbon and whiskey markets, online and locally. Prices are often influenced by a combination of production factors, market demand, and the unique characteristics of each bottle.

Additionally, the secondary market plays a role in creating a community where enthusiasts can connect and trade bottles that may not be easily accessible through traditional retail channels.