Table of contents:

1.0 Executive Summary…………………………………………………2
2.0 Introduction…………………………………………………………3
3.0 Pricing methods……………………………………………………..3
3.1 Initial investment………………………………………………..3
3.2 On-going costs and labor costs………………………………….4
3.3 The influence of price on perceptions of wines quality………...6
3.4 Aging ability and release date…………………………………..6
3.5 Wine shows and wine review…………………………………...7
3.6 Government influence…………………………………………..8
3.7 Market influence………………………………………………...8
4.0 Conclusion…………………………………………………………...9
5.0 References…………………………………………………………..10

1.0 Executive summary:

This report attempts to discuss the issue of wines prices for wineries. This include pricing methods for wine such as initial investment, ongoing costs, labor costs, the influence of price on perception of wine quality, wine shows, wine reviews and release date. In addition, the discussion about the wines prices are the government influences and market influences.

2.0 Introduction:

The prices of the wines differ from each other in a thousand ways. The different wines have different prices. However, the expensive wines usually do not have the better tastes. It was considered about this point that customers could not help to ask about that consist of the prices of wines. At the same time, pricing is a big challenge for wineries. There are many factors that affect the wines prices whether expensive or not. In wines worlds, the simple questions have little simple answers. It is also same as the pricing question. The final prices of the wines depends on many different complexes factors, such as regions, the reputation of wineries, aging ability, release date and the perception of wine taster etc.

3.0 Pricing methods:

Initial investment:
The grapes growing could be seen as the initial investment, the quality of grapes is one of the most important factors of pricing determined. The grapes grown in different regions under diverse agronomic and climatic conditions.（Bombrun,H, Sumner,D.A, 2003）Compared with the grapes which tastes very light used to mass produced wines，the grapes which consist with the complex and strong tastes usually output less per hectare and less produce wines per hectare. (Bombrun,H, Sumner,D.A, 2003) Thus, the prices of that wine could be more expensive. The wines made by higher quality grapes have the higher prices.
Secondly, if the cost of land is very high, the cost of grapes certainly will be very high. There are some various soil wines regions such as Champagne, Cote d’ Or, Napa Valley and Adelaide. （Bombrun,H, Sumner,D.A, 2003） For example, in Adelaide, the present scope of this region has been extended to suburbs. (Dimson, E, Rousseau, P.L, Spaenjers, C, 2013) If land price continues rising that grape growers could raise the price of grapes constantly. Thus, wines prices will certainly follow continue to rise eventually.

On-going costs and labor costs:
The oak barrel that used to aging wines is one of the most important factors of pricing. It is essential to choose high quality oak barrel, furthermore the storing and maintenance of the oak barrel also need put a lot of money. The equipment of wines making such as squeezer, fermentation cylinder and storage jar have quite high costs. (Lecocq, S, Visser, M, 2006) There are a lot of devices may not be used in the wines making free times and only could be used in harvest season. However, the costs of equipment also can share with several manufacturers together. (Lecocq, S, Visser, M, 2006) Labor costs is one of the main factors which is must be considered. How to save labor costs is the initial problem that each wineries owner must to face. Especially when the picking season is coming, that only two ways to choose which are artificial picking or mechanical harvest. It is apparently that artificial picking have more advantages such as more flexible and easy to control than mechanical harvest. For example, the top wineries like to use artificial picking