Expensive 2nd market for wine
| Problem statement | Wine traders inflate wine prices - wineries don't sell to who can drink. Wineries still earn a similar amount of money |
|---|---|
| Current solution(s) | Wine auction houses charging 52.5% of the wine value for reselling |
| Proposed solution(s) | DTC membership through burnt NFT |
| Additional Comments | |
| Case Studies | |
| Frequency (1 - 5) | |
| Impact Size (1 - 5) | |
| Intensity (1 - 5) | |
| Next Steps | Find the size of the 2nd hand wine market in AUS/Globally |
| Top Risks / Pass Reason | |
| Total Score | 0 |
| Status | |
| Who has the problem | |
| Theme |
Secondary wine market Australia demonstrates an expensive 2nd hand market for wine
With the breakdown copied here
Secondary wine selling breakdown
- 39% tax in Australia for retail wine
- Secondary wine selling fees
- 27.5% wine auction house fee (storage, auction, website, etc)
- 10% or higher vendor fee
- 15% - 20% buyer premium on top of sale price
Example - $1000 bottle of wine
- $1000 bottle of wine incurs 39% tax. True bottle value = $610
- $610 sold at auction
- $167.75 wine auction fee
- $61 vendor fee
- $91.5 buyer fee
Subtotals
- $701.5 buyer price
- $381.25 seller revenue
- $320.25 lost to fees
- 52.5% value lost from reselling cycle
- 67.97% value lost from initial purchase