I just got approached by the good people at LVMH, offering half bottles of Krug for a BTG placement. Though it's not perfect for my cost, I settled on $99 for two glasses, and I think that's pretty good for the higher-end steakhouse where I work. My boss, on the other hand, thought it was "obscenely expensive" and will only let me list it at $59, which hurts big time for my percentage. Ouchie.
What have you seen price-wise for Grande Cuvee? There's a little Italian place in Boulder that does $40 a glass, but I haven't seen it anywhere else. Help me.
1) You can't take margins to the bank. If the product sits there and doesn't move, it does you no good.
2) How much champagne do you really move? If you're moving enough to where a $15/glass price difference significantly impacts your margins, then you're moving a lot of Champagne and perhaps you need to start ordering by the pallet ...
3) Personally, I think your bubbles should be priced at a hit to your margin so you can move a more than just a token amount and appear to be generous to people in the know. Your other BTG options should be more than enough to make up for it. Your focus on having great margins should be on products like BTG Sauv Blanc, Pinot Grigio, Cab, etc ... fast movers where even small changes in your costs will end up making a huge impact on your P/L at the end of the period.
4) If you're really worried about the cost, advertise the fact that you're doing this promotion, then charge off some of the cost of each bottle to your company's marketing budget ... there's more than one way to get the $ for your product ...
5) Having said all that, if I saw a half bottle of Krug for $59, I'd take two please. For myself.
Points 2 and 3 are so important! So easy to get tunnel vision with pricing but that sheet of top 10 items sold is going to rule your cost percentage, not your high end champagne BTG
If Krug is on that sheet congrats!
In response to #5. If you have halfies of Krug for $60, I will take a palate, and sell it to my members!!! I woudl also take 3cs for me!