The supply and demand and end of bin irony

The moment a retailer buys wine from a wholesaler it gets marked up with their standard percentage. 

Then the wine takes months to trickle out. Finally, you’re down to the last six bottles. Finally.

The standard reaction is to discount it, to make it less valuable. To do what you can to turn it into cash. The discount bin. The bargain corner. Whatever you call it. You’re closing it out.

But that goes against the laws of supply and demand. Even if the demand is low, the less supply there is should raise the price, not lower it.

Think about this. Rather than grouping the last of the better wines in the same bin as the unsellable junk, try a different shelf and call it “rarities” or “last call gems” or “no more after this.” Fill it only with wines no longer available but you happen to have some. Then¬†raise the price a dollar or two (or five!). Add value. See what happens.

You can always bring the price down again later. And you can always move them to the closeout bin later.