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This displays a clear lack of understanding of expected value. There is a popular saying in the wine industry: "The best way to get a small fortune from the win
by mattmaroon 17y ago
This displays a clear lack of understanding of expected value. There is a popular saying in the wine industry: "The best way to get a small fortune from the wine industry is to start with a large one." Most producers of fine wines lose money. Owning a winery is a badge of honor among the ultra wealthy, often at the expense of being a terrible investment.
In any hits-driven business, like wines, there is a large risk. It's more akin to starting a rock band than a traditional business. For every Screaming Eagle there are hundreds of upstarts who can't even push bottles at $30.
It's not fair to evaluate the pricing of only the most successful. That's like saying rock CDs cost too much because the Rolling Stones make billions off of them. Sure, maybe, but overall the industry's profit margin is in line with other industries with similar risks and opportunity costs. Since we live in a free market, if it were not competition would spring up until it were.
- davidw 17y ago$30 is still a lot of money for a bottle of wine. Heck, the wine they produce at the local agricultural high school isn't that bad, and it goes for under 5 euros a bottle.