The Auswine Forum

The household budget must get organised. Vague talk of trying to afford a house closer to where we both work and childcare. Brought up the scary question of what we spend on wine, how much we are drinking, how big the cellar should be.
Initial thoughts
about 4 bottles a week - limited to this for the benefit of the budget and waistline.
So we should be buying about 20 dozen a year once cellar at replacement but no growth stage.
If we want to drink wine at an average age of 6 years after release then the cellar should be in the 1200 to 1500 range (will probably break 1000 of the first time later in the year).
Can we budget as low as $20 per bottle average? With Houghtons White Burgundy and Riesling round the $13 mark for whites that should leave a reasonable amount of slack for good reds. Therefore budget about $4800 a year.

Next what to buy? I thought I should split the 20 dozen into 40 six packs for planning. Found I could get to about 20 six packs and then have the things that vary depending on vintage quality price etc.

Has any one else done the calculations? What are we restricted to (by budget, wives, other considerations)? By the way rough estimate of last 12 months saw $6000 spent on vino. Too much? well 2002 is a birth year plus such a good vintage.

DJ

As to your buget....$6000 sounds like a nice round number
I average between 7-9000 a year. Unluckily or luckily for me my wife supports my "hobby" and doesn't mind what I spend. Baby due next March so I think that will gut my purchases for the next 2 years
As to cellar, I built mine to take 200 dozen.....currently has about 130 after 5 years. I spend between 30 and 80 a bottle currently...just depends on whats good. Just bought the latest Dead Arm, Clonakilla Shiraz and Mosswood Cab Sav,all dear but worth it
Have fun collecting

I see no difficulty paying $15 to $20 for good quality wine to cellar and drink witin the timeframe you talking about. There are plenty of great buys at this price point and this will ensure good rolling stock for years to come.

One way to increase a cellar significantly is through the auction market by using opportunity purchases to buy or else selling off good quality surplus wines - depending on the state of market.

If this strategy is used then try buying wine at $30 to $50 per bottle price point with a minimum 6 bottles each purchase, then place it on the market later to realise a gain or else enjoy top quality wine for your own use. Most auction houses have guides to use to purchase such wines or else will give you good advice. This way you can cash up occasionally and buy more at a lower price point.

Neville, I respectfully disagree with the auction for profit strategy as I believe that the commissions charged kill most of any gain that you may make.
Ben

I'd only auction for profit if I happened to luck onto something before it became Parkerised. Buying for $40 and selling for $120 seems good. However, I doubt it will work in anything but special circumstances, because commissions hurt.

Kieran

Agree with the comment that commissions can be high and eat up profit but the auction strategy when used as only one of a number of ways to build up and dispose of wines for a cellar, can be profitable.

I note someone online in this forum stating a 5% selling commission for an auctioneer which is very good and you also should not hesitate to negotiate rates with the auctioneer, albeit depending on the state of the market and what you have to sell being factors in what response you receive.

Its a bit like the share market, buy quality, diversify, know when to sell but with wine, make sure you drink and enjoy some of the stock along the way.

Hi.
On the subject of auctions, I got an email from Stirling Auctions which may interest anyone hoping to sell a lot of their best stock... it looks like someone has come into a lot of money, or someone with a lot of money has taken up a new hobby!

"Sterling Wine Auctions has been commisioned to create a world class wine cellar.

Timing is tight, the wines must be catalogued and installed in the cellar by mid December.
The budget is over $1million and the very best wines from France, Italy, United States and Australia will be acquired. The client is focused on quality and value as much as iconic brands and stella vintages. Of particular interest, any wines with 95 or more Robert Parker points. All wines must come from appropriate storage conditions with certification or independent verification."

If anyone is interested, I can either post the whole message with contact details, or forward the email if needed.

cranky wrote:The budget is over $1million and the very best wines from France, Italy, United States and Australia will be acquired. The client is focused on quality and value as much as iconic brands and stella vintages. Of particular interest, any wines with 95 or more Robert Parker points.

"...and the nominees for the Conspicuous Consumption Award are..."

Perhaps that's cruel - it's very likely there's no intention to consume any of the wines. What's the budget for the cellar itself, I wonder? Walk-in tiled floors, expensive racking in a variety of extravagant timbers, soft lighting, particular trophy bottles (magnums of 47 Cheval Blanc and 82 Petrus) in their own highlighted display racks.

And quite what 'quality and value' has to do with '95 Parker Points' has me beaten.

No doubt some wealthy wanker who's decided he needs to impress someone with a wine collection...<sigh>

sadly,
Graeme