Earlier in the year, we have started managing all our clients’ portfolio and it’s now part of our standard service, without charging any extra fees.
When we assess a wine before putting it for sale, there are a number of factors that we look at:
- The past historical performance.
- The current market conditions
- What are other merchants selling it for?
- How many merchants are selling it?
- What stock is available in the market at the time?
- What is the variance in price between merchants? i.e how big is the spread? This determines how much demand there is for a wine at any given time.
- Has there been any good or bad news about this wine recently?
- The age of the wine and is another critic score coming soon?
- What is your current return on investment?
In essence, we are trying to ascertain if it can perform better or worse in the next 1-2 years.
These are just some of the factors that we consider before putting a wine for sale. Our research team and the systems we have in place help us make these decisions in a timely manner. But what we have noticed is that when a larger parcel of wine is put on the market, it generates more interest than 1 or 2 cases.
Going forward, when there’s a wine that should be put on sale in your portfolio, it will be put for sale with other investors at the same time. Meaning we all buy in and sell together. In addition to what we’ve mentioned above, this also gives us additional leverage when buying parcels of new investment wines and enables us to negotiate for better discounts.
