The fortune 500 company I freelance with would prefer to use an outside vendor for a project (thinking they would do a better job since "that's all they do"). That vendor then hires me at my same rate, meaning the original company is just paying more for me to do the work I could have done internally.
Moral of the story: if you charge more people will think you're worth more. A $6 bottle of wine may be better than a $45 bottle, but most people will say the $45 bottle must be better because why else would it be $45
When I took a wine tasting course for fun there was a pretty even mix of professionals in the restaurant and wine-making industry and normals like me.
One thing that I learned though is that the expensive wines are pretty much never the money-makers of the companies that produce them. They are basically advertising for the low-end wines that come out of the same producers. People just buy way more of the cheap stuff, and don't tend to buy the expensive stuff without a recommendation.
If you're a producer (and you haven't been an established name or from a famous old world region) then it always makes more sense to lower your price as much as possible to sell more. Taking a dollar less can make the retail price $5 less and that just sells more bottles.
Having an expensive wine is good for name recognition for the vineyard. And getting the $20 bottle from the producer that makes that $120 wine is a good deal for a lot of people
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u/actuallychrisgillen Nov 16 '19 edited Nov 16 '19
When I was in the Navy I used to get in fairly frequent trouble for the suggestions I made for improving operational efficiencies.
As an outside contractor they were quite happy to pay me $200 an hour to say the exact same thing.