Thanks to the nice people at the Tesco Wine Community I have a case of wine to give away. It's their Spectacular Summer Entertaining case which is a fascinating mix of sparkling, red and white wines. All they have asked me to do is set up a competition and whoever wins they will send a case to the winner.
As I've been tasting a lot of inexpensive and not so inexpensive wine recently so the theme for the competition came quite easily. Simply put it's
"what the difference in cost between the wine in a bottle costing £5 and the wine in a bottle costing £10?"
Now before you hurriedly post an answer of £5 and then get disappointed when you don't win remember that there are costs to take into account on taxes, shipping and duty to name a few. It's the cost of the wine in the bottles I want and a little bit of research should yield a reasonably correct answer. As a caveat I have made some assumptions on the profit the retailer makes and packaging and distribution costs.
Why this subject? Because you really do get much more wine for your money the more you spend. I know that is no absolute guarantee you will like it the more you spend but it isn't it good to know you are really getting much more for your money for only a little bit more cash?
Just post your answer here before the closing date for the competition which is 10pm on Friday 6th July. I'll decide on the winner based on what I think the answer is to the nearest 10p. The winning entrant has to be happy to provide me with their contact details so I can pass them on to the Tesco Wine Community so they can arrange delivery.
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12 comments:
A £5 bottle of wine is thought to carry about 11p worth of wine in it, whereas for a £10 bottle of wine that is about 25 times higher, at £2.82. So I guess you are looking at £2.71, or 25 times more wine value in the £10 wine versus the £5 wine.
According to an article in Bibendum times. £5 wine costs 11p for the wine and £10 wine costs £2.82. When you buy a £10 bottle of wine it is 25 x better than a £5 bottle
Ok so I have done some research and I'm actually quite shocked at the results. It looks like you get about 11p worth of wine in a £5 bottle. A £10 bottle is said to contain £2.82 worth of wine. So the difference of cost of the wine in the bottle is £2.71.
PS looking above we seem to have found the same article!
what the difference in cost between the wine in a bottle costing £5 and the wine in a bottle costing £10
word on the grapevine is that actual wine in a £5 bottle costs £1.08 and wine in a £10 bottle costs £4.16 so the difference in cost would be £3.08 but possibly a fairly more substantial difference in taste!
I didn't know any of this! After a bit of googling my answer is £2.93 (and it's made me think about the wine I buy).
Well that's a bit tricky, but based on some assumptions and also a little bit of research, my calculations have produced a difference of £3.41
So approx 50% of the cost of a £10 bottle is for the wine versus approx 25% of the cost of a £5 bottle.
Working it out logically.
£5 bottle of wine.
take off 20% VAT £4.166
take off retailer margin assuming 35% margin - £2.71
take off £1.90 duty leaves 0.81
shipping cost .30 leaves 51p
take off packaging costs (40p)leaves 11 pence.
£10 bottle of wine.
take off VAT leaves £8.33
take off retailer margin leaves £2.71
take off duty leaves £3.52
take off shipping leaves £3.21
take off packaging leaves £2.82.
therefore the difference is £2.71.
This is assuming that the merchant or seller is selling a wine they have shipped directly.
If it is a wine imported through another importer or agent you take off another lump. That leaves the £5 bottle costing around 2p.
A £10 bottle would work our around £2.25. Giving a difference of £2.23 but I doubt that is the answer you are looking for so I'll say £2.71
(this also assumes the wine is NOT Bordeaux with sales coming through from Chateau to Negociant with a Courtier taking a cut too) in which case the £5 wine would not be sold under this agreement (couldnt be because of costs involved). The £10 wine might be, and so the difference is significantly smaller. Which is why Bordeaux at £12 and less can be much of a muchness unless you buy ex Chateau stock.
I think we've all been reading the same article, but I suppose it all boils down to "it depends where you buy it". Since Tesco is sponsoring this, I think we are talking about supermarket prices and they will presumably avoid making a high markup on the more expensive bottles, to keep the price attractive. So I'm going for a slightly higher differnece of £3.45
ha ha, i dont want to leave the same comment everyone else has googled. if you're not very rich like me - the difference is £5 i get to drink wine of which there are some decent bottles in Tesco, or £10 i am sad as i cant afford it as well as my food so i get to have NO wine boo hoo!!
Having borrowed some of the info Phil used to get his answer, I've calculated the difference and have come up with a slightly lower figure of £3.29
Thanks for all your answers.
Four of you have come out with the answer which I was looking for of £2.71. You had all clearly found the article that had prompted my interest and whilst it could be said that none of your answers are wrong given all the variables, I have to choose one winner.
Barry was first with the answer I was looking for and Timmy gave a very impressively detailed reponse. However I'm going to choose Rhoda as the winner. Her response of being "shocked" at the difference highlights a point I was trying to make.
You get much more wine for the money for spending a little more on your wine.
So congratulations to Rhoda and thanks to everyone else for taking part and to the Tesco Wine Community for providing the case.
Thank you very much Colin, I'm delighted! I've learned a lot too, thank you.
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