Issue link: http://winesandvines.uberflip.com/i/197145
S U P P L I E R S U R VEY indicated they would increase prices more than 3%, and 28% said they would increase prices by 3% or less. "I held prices back for the past four years," came one response, "and I need to catch up on expenses that increased during that time." This was the case with many suppliers—some reported holding back prices for anywhere from two to four years while absorbing increases in their own raw materials costs, labor costs or unfavorable exchange rates for overseas products—who are finally feeling that they can raise prices. Only five respondents to the survey were planning to lower prices. With steady expansion in the industry, a couple of healthy harvests and a slowly improving general economy, suppliers are optimistic in spite of some cautions and the tight credit market. Santa Cruz, Calif.-based designer Ed Penniman, in response to our survey, went directly to one of his winery clients and asked if they felt their financial health was improving. And John Bargetto of Bargetto Winery (Soquel, Calif.) said, "Yes, our financial health has improved for the past 18 months. After 80 years, the winery has been through many ups ands downs, but this one was in fact the Great Recession. Things are much better than they have been in five years…but the wine business will always require great commitment." Company Performance Price Changes for Products and Services How did your company perform during the past 12 months? In the next 12 months, do you expect to change the prices of your products and/or services Grew Rapidly 28% 26% 24% 22% Increase Prices >3% 20% 17% 9% 10% Grew Slowly 51% 54% 49% 44% Increase Prices <3% 28% 32% 26% 19% Remained Unchanged 18% 12% 18% 24% Keep Prices the Same 50% 49% 59% 63% Retreated Slowly Retreated Rapidly 2013 2012 2011 2010 0% 1% 1% 1% 0 10%20%30%40% 50% 60% Decrease Prices <3% 1% 1% 1% 4% Decrease Prices >3% 3% 7% 8% 9% 2013 2012 2011 2010 1% 1% 4% 4% 0 10%20%30%40%50%60%70%80% We're Getting Bigger So You Can Get Better Vintage Nurseries...growing with your success in mind. Day after day, we plant and plan at Vintage Nurseries, expanding our product selection and service to meet your growing needs. In an effort to be a reliable source for all of our customers, we strive to maintain the highest standards in the industry. Quite simply, the bigger we get, the harder we work to keep your success and satisfaction our top priority. Wasco— 661.758.4777 Paso Robles — 805.237.8914 Santa Rosa — 707.542.5510 800.499.9019 • www.VintageNurseries.com Modesto — 209.523.8036 Serving the Wine, Table Grape and Raisin Industries 44 W in e s & V i ne s Nov e m b e r 20 13