The price is larger simply to match his ego. He doesn't believe any wine should be more expensive, not Screagle, not Petrus, etc.

now come on guys - if the market will support this price, why should he not take it?

Harlan is of course entitled to charge whatever he wants for the wine.  

I think the gripes we are reading are really people's prognostications that the market won't support the price. Looking at the number of people here and on e-bob that have given up on this wine due to price increases, it is easy to guess that Harlan has over-played his hand. What folks don't know, however, is whether the waiting list is comprised of people who will also pass and will rue the day they signed up, or is comprised of people who have been paying $600-$900 per bottle on the secondary market and view the opportunity to by at $500 as a blessing.  We all know of wineries that have waiting lists that are measured in the thousands. Harlan is probably shooting for a business model that has a waiting list measured in the dozens, with every buyer and every waiting list member comfortable with the notion that they will pay $500+ per bottle. If you owned a winery, would you want a list of 1,000 buyers and 5,000 waitlisters who buy your wine for $200 per bottle, or 1,000 buyers and 100 waitlisters who buy at $500?  There is no question that the pricing is designed to weed out flippers and replace them with end users. I suspect that there is enough wealth in the world, (coupled with status chasers) to support his pricing. Especially when it isn't that far from First Growth pricing.

JimmyV, I think that you are right. He is comparing and pricing his wines to First Growths. And, buying a bottle only costs 344 euros.

What Jimmyv said.

Yes indeed, the market will determine whether the pricing is correct or not. If not it won't be apparent for a couple of years as they turn off long-time customers (see earlier posts) and work through their wait list but eventually it will catch up to them if the pricing is flawed. Such a delicate balance that could relatively quickly sink his business. **shrugs**

When I first got bitten by the wine bug, I was all about trying to get on the California cult lists. And Harlan was one of the ones I REALLY wanted to get on. I got my first estate offer for the 2000 vintage. Even though the wine was really expensive, I bought 4 and got all 4. Then for the 2001 vintage, I requested 6 and a mag and got allocated one 750. Same thing happened for 2002. I asked for and got 2ea of the 2003. I passed on the 2004, but got another offer for the 2005. I sold that to a board member at cost. Now here we are at $500 a bottle. Too rich for my blood. Especially when they will give you all you want on "off" vintages like 2000 and only one bottle in the big years.

The first vintage that I have accurate records was 1998 @ $175/bottle.

I stopped buying Harlan for myself when the price increased from $350.  I have kept buying for others, however.  I ask for a case and get 3 bottles.  That leads me to believe that he has hardly overplayed his hand.

Similar to previous posts, I agree with Bob. But, I'll take it one step further. Harlan HAS to raise prices.

At the end of the day, it doesn't really matter what most of VinoCellar and eBob thinks/posts/buys. Harlan is going to raise the price and capture as much of the money that's being left on the table as possible. He raised the price almost 30% last vintage and people pissed and moaned like crazy, and said it was going to be the end of the world. I was on the waiting list then, got the offer and, after admiring the fancy paper, immediately tossed it in the trash can. Clearly it didn't have a big effect on his business if he's raising prices again. Again, remember that even if he can't sell the wine out to his mailing list, he still comes out ahead if the price increase offsets the reduced price to the restaurant distribution channel (which I assume is what he is doing). I'd even consider arguing that it's worth it to lose a little money for a year buy selling extra cases to high end restaurants like TFL, etc. if it cuts supply to the end mailing list consumer and maintains the "scarcity" of the brand.

Halan is a cult cab and plays by a different set of rules. The guy makes coffee table books, sends out weird cards and is driving the Napa Valley Reserve. It's about exclusivity, and if you can't afford to play, well... you're not cool enough to be in the club. Instead, load up on more Bressler and think of all the money you're saving (like me).

It is completely up to him whether or not he leaves money on the table. However, he is destroying the fan base domestically. If he is able to continue to sell overseas, then he will be fine. If not, then he will not be able to raise prices next year at the very least (anyone notice wall st today?)

Of course, if he adopts the european model of lowering prices in off-vintages, then it will be fine. Was that a pig just flying by?