How does one purchase wine for a low price and resell it for profit? There are a few methods that savvy wine flippers use to make a few extra dollars and fund there way into free wine that they can enjoy themselves. I have pulled off lots of really great deals in the past and then with my profits bought several cases of wine to enjoy.
One such experience was when I sold 5 bottles of Dom Perignon that I picked up at a Circle K for pennies on the dollar. It was a new Circle K and they must have brought product from a location in a very affluent area where they were selling high-end wine. The manager at the station was trying to rid herself of unwanted inventory and decided to mark the bottles down to $100 a piece. There were two bottles of 1998, one bottle of 2000, one bottle of 1990 rose, and a magnum of 1998. I spent a total of $600 for the lot and turned around and sold it all for $1200 at auction and made myself a cool $500 profit after commissions and shipping costs.
This is just one recent glory moment I've had, but I've done countless deals just like this. There are a few tricks I'd like to highlight for you so that you can do the same and make some nice profit:
Tricks of the trade:
*Search po-dunk liquor stores for fine wine. You'll never imagine the gems I've found in weird little convenience liquor stores. It literally happens to me all the time. These stores often have wine enthusiast owners that initially buy a bunch of fine wine, but come to realize it doesn't sell very well. The normal clientele doesn't understand fine wine, and so they usually discount the wine or keep it at the original price, which becomes really cheap after a few years of wine appreciation.
*Know the vintages - You must realize which vintages are the good one's for each year and what is collectible. I wish I would have bought several hundred cases of 2000 Bordeaux. I was just a new kid in the business when these wines were still on the shelves and if I would have know the quality of the vintage and pounced on it, I would be sitting on a goldmine. This of course was before 2005 hit and the Chinese got heavily involved in the Bordeaux futures business. Even till though, there are opportunities always arriving in the wine business where demand is created, but you must know the classic vintages.
*Buy at wholesale if possible - If you know someone in the industry, try to broker a deal where you can trade a service or something so that you can buy wine at wholesale prices. Back in the day I worked for a retailer that would let me buy wine at cost. When high rated gems came up for purchase, I would buy them at wholesale and just pay back the store for slightly above that price (that way the store profited too). Lots of cult wines can be purchased before they really reach the market this way, and you can make a killing reselling them.
*Follow the press - In order to command a profit on newer wines that haven't yet appreciated in value over time, you must follow the press and how they score the wines. 95-100 point Robert Parker and Wine Spectator scores will drive up the prices immediately on the auction block. If you can purchase them at unsuspecting retailers (believe me there are tons of them, even the big boys) than you can make a tight little profit.
*Always calculate the seller's commission into your profits & losses. Wherever you sell your wine whether it be online or at a live auction, you have to pay a commission to the auction house. Don't assume you have make a certain profit on the wine until you have subtracted those costs.
*Trust in bluechip Bordeaux. If you can find quality Bordeaux to invest in at a decent price point and in a good vintage, odds are you'll make a profit by buying it and selling it. Classified growth has a proven track record for growth and appreciation over time.
*Get on the mailing lists of cult producers. If you can secure a spot and buy the wine direct from cult California wineries, and some Washington and Oregon outfits too, you can make a killing because these wines are so limited and in demand. Tell me you wouldn't want to be on the direct mailing list for Harlan, Colgin, Screaming Eagle, Bryant Family, Marcassin, Sine Qua Non, Quilceda Creek, and Cayuse. If you were buying these types of wine at winery direct prices, you could easliy turn a huge profit on the auction block.