Wednesday, March 09, 2011
What's it Worth to You?
The value of a bottle of wine is something that can be endlessly debated, and may never be adequately solved. If you've ever had Screaming Eagle, there is always the lingering question: Sure it's good, but is it $1200 good?
That qualitative judgment aside--I have clients who fly in their own planes but would never spend $700 for a bottle of wine--the factual question of what's a bottle worth is hard to determine, and a big part of that is where and when you it's offered, and whether you're the buyer or the seller.
Let's say, in arguendo, that we agree a bottle of Joseph Phelps Insignia 2006 is worth $125.
But is it?
Most auction houses would put an estimate of $100-150 per bottle. In a "hot" room, that bottle could hit the top of the estimate, $150, which would then be subject to 20% buyer's commission, tax and shipping. The price to the buyer would be close to $200.
But I've been in a cold room where even good wines went begging at the reserve price, 10-20% below the low estimate. In this scenario, the bottle hammers at $80. If you're the seller, it might be subject to 10% commission, leaving you with $72.
After the auction you head out to celebrate (or commiserate) at a restaurant for a steak dinner, and the same title is listed at $250.
So what is the price? $72 or $125 or $200 or $250? It's the same bottle, after all.
(I just looked it up and the '06 is being offered at retail between $120 to $200, plus tax and shipping, though you might be able to get it for as little as $105 on Winebid auction.)
