Beer Prices - opinions/explanations?

So 2 part question, with the first part directed at the general masses and the second part directed at people in the know.

Part 1: Do you feel $5.50 for a typical craft beer (BBC Nut Brown or Schafly Pale, for examples) is a reasonable price (16 ounce pour)?

Part 2: What influences the price of a draft beer - and I'm speaking here not of a BBC drink bought at BBC or NABC bought at Bank Street but, say, a Schafly's bought at O'Shea's or a BBC bought at the Monkey Wrench? Let's limit it to pretty standard stuff - not high gravity, limited release, hard to find, etc.

Was recently at a local bar (name not necessary). Nothing special about the bar. Like many other bars in the city. 16 ounces of Schafly's Pale for $5.50. That seems step to me. Like just under 20% too steep. Would gladly pay $4.50 for that beer. But $5.50 seems steep and, honestly, lessens the chances of me coming back to that bar.

Having these thoughts, part of me feels like I'm just cheap and a cause for why local places don't make it. On the other hand, I can't get past the fact that $5.50 seems steep for what is, honestly, a run of the mill "craft" brew.

Cumberland is $4.50 or $.4.75 I believe for a 20oz imperial pint. They have a lot of happy hour time, all day Sunday and Tuesday and open till 7 on weekdays. I think the happy hour pricing is about $3.50 per imperial pint which is a great deal.

$5.50 is on the high side for for the beer you got and a 16oz pour IMO.

Beer pricing appears to be all over the board on all brands if you think about it. I guess some particular places price their merchandise with a "what the market will bare" in mind. Other places may have a standard mark-up, and there may be even a few who well, they just guess. I'm very interested in this subject and have been doing some R&D at some of our chains lately. Not some much on pricing but more on drinking trends, intrest in products, etc. I always remain undercover. It is pretty interesting, if you are into that type of thing.

Ultimately the price will be what the market will pay.

Cumberland is $4.50 or $.4.75 I believe for a 20oz imperial pint. They have a lot of happy hour time, all day Sunday and Tuesday and open till 7 on weekdays. I think the happy hour pricing is about $3.50 per imperial pint which is a great deal.

$5.50 is on the high side for for the beer you got and a 16oz pour IMO.

I think they are currently running a $2.75 Tuesday special, which is amazing - although I haven't made it.

The local microbrews have the best prices in town. I'm sure that is partially due to not having distribution costs. When looking solely at cost to customer, those imperial pint prices are tough to beat.

Beer pricing appears to be all over the board on all brands if you think about it. I guess some particular places price their merchandise with a "what the market will bare" in mind. Other places may have a standard mark-up, and there may be even a few who well, they just guess. I'm very interested in this subject and have been doing some R&D at some of our chains lately. Not some much on pricing but more on drinking trends, intrest in products, etc. I always remain undercover. It is pretty interesting, if you are into that type of thing.

Sounds like interesting research. I've always wanted to do a similar project with grocery food prices.

Ultimately the price will be what the market will pay.

I agree. Which explains by reluctance to go back to this spot. I don't want to actively support that price point. I also wonder, though, if places lack necessary knowledge and price themselves out of a market and out of business. A price that starts with a 4 - even if it is 4.75 is tempting to my eye. At 5, I become a reluctant buyer.

The local microbrews have the best prices in town. I'm sure that is partially due to not having distribution costs. When looking solely at cost to customer, those imperial pint prices are tough to beat.

Due to 3-tier laws, locals very much have distribution costs.

Now, if you are buying them on-site (Cumberland @ Cumberland, BBC @ BBC, etc) they dont, but otherwise they do. Freight costs are lower than if coming from elsewhere, but if you are buying BBC at a bar, there will be (minus shipping) the same distribution costs for BBC as for Schlafly.

The local microbrews have the best prices in town. I'm sure that is partially due to not having distribution costs. When looking solely at cost to customer, those imperial pint prices are tough to beat.

Due to 3-tier laws, locals very much have distribution costs.

Now, if you are buying them on-site (Cumberland @ Cumberland, BBC @ BBC, etc) they dont, but otherwise they do. Freight costs are lower than if coming from elsewhere, but if you are buying BBC at a bar, there will be (minus shipping) the same distribution costs for BBC as for Schlafly.

The three tier may explain why on-site beer may be less expensive, it does not explain why one bar sells a beer for $1 more then the next. All bars pay the same price, by brand, per keg.

The local microbrews have the best prices in town. I'm sure that is partially due to not having distribution costs. When looking solely at cost to customer, those imperial pint prices are tough to beat.

Due to 3-tier laws, locals very much have distribution costs.

Now, if you are buying them on-site (Cumberland @ Cumberland, BBC @ BBC, etc) they dont, but otherwise they do. Freight costs are lower than if coming from elsewhere, but if you are buying BBC at a bar, there will be (minus shipping) the same distribution costs for BBC as for Schlafly.

The three tier may explain why on-site beer may be less expensive, it does not explain why one bar sells a beer for $1 more then the next. All bars pay the same price, by brand, per keg.

Agreed on that. That is simple though, some bars mark up more than others.

The local microbrews have the best prices in town. I'm sure that is partially due to not having distribution costs. When looking solely at cost to customer, those imperial pint prices are tough to beat.

Due to 3-tier laws, locals very much have distribution costs.

Now, if you are buying them on-site (Cumberland @ Cumberland, BBC @ BBC, etc) they dont, but otherwise they do. Freight costs are lower than if coming from elsewhere, but if you are buying BBC at a bar, there will be (minus shipping) the same distribution costs for BBC as for Schlafly.

I was talking on-site about the microbrews. Sorry if I was unclear.

I think they are currently running a $2.75 Tuesday special, which is amazing - although I haven't made it.

Yea, throwback Tuesdays, what their happy hour pricing was when they first opened. Pretty packed in their on Tuesdays, a good spot to hangout. And the price is definitely right. Two imperial pints at Cumberland will get you feeling right. . .

I know it is not a craft beer, but I left a glass of Stella on the bar untouched when I was told it was $11.50. This was at Chicago Airport. Yes, I expected it to be expensive, say $7.00, but $11.50 is just taking the piss. When the bar maid told me the price, I said "Are you insane, I 'm not paying that" turned around and walked out. As far as $5.50 goes, no I don't think it is that unreasonable.

3 years ago I was traveling with my sons Ice Hockey Team ( youth hockey, they serve beer at the games ) and we we had stopped at The Great Lakes Brewery. 5.00- 16oz, 3 years ago at the Brewery. Place was packed.

Mark,
Special Request for the fall/winter - "Bourbon Barrel Nitro Porter"

Oh, that sounds so delicious, rich and creamy!

The Nitro Porter is my favorite beer of all time and I think that would be a great flavor profile. A light bourbon flavor, not too heavy. The BBC bourbon barrel is too strong on the bourbon flavor imo.

I don't think any beer, especially brewed on site, ought to be more than $5. That's just my opinion. I am much more likely to pay $4 or $4.50 and have a couple than I am to have even one at over $5. I'm the same way with wine though. I know what my favorites cost per bottle, so rarely have a glass out in a restaurant because of the HUGE markup. I won't pay for a glass what I can almost pay for a bottle.

Mark,
The BBC bourbon barrel is too strong on the bourbon flavor imo.

These are all personal preferences, but...

Bzzzzzt, wrong!

The old Pipkin version was too strong occasionally, but the bourbon flavor in it seemed to fluctuate significantly. The BBC versions have always been stellar, IMHO. If they only made an Imperial version....

All that being said, I'm ready to do my share toward keeping the Bourbon Barrel Nitro Porter inventory in check.

Getting back on topic, it's hard to argue about $5-6 craft beers, when Bud Light costs you $3-4.