Wine Retail's Dirty Secret

How We Price Our Wine: A Transparent Look at Margins, Shipping & Tariffs

With affordability top of mind, we want to be transparent about how we price our wines at Harvest Wine Shop. Here's an honest look at our margins, shipping costs, and how tariffs affect what you pay.

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Our margins (and industry standards)

Wine retailers typically operate on margins between 30% and 50%, depending on their business model. Big-box stores often run lower margins because of their volume, while boutique wine shops tend to fall in the 40–50% range. Restaurants, by comparison, commonly mark up wine 200–300% over retail.

At Harvest, our average margin is about 35%, which is at the low end for wine retailers. We've intentionally kept our margins lean to make great wine more affordable.

We also use a sliding-scale pricing model. Lower-priced bottles carry slightly higher percentage margins, while premium bottles carry lower ones. This helps us keep wines competitive across a wide range of price points.

The real cost of shipping wine

Wine is expensive to ship. A case of 12 bottles weighs nearly 40 pounds, and shipping costs are based on weight, distance, package size, UPS alcohol surcharge, and required adult signature service.

Typical shipping costs:

12 bottles across the country: ~ $50
3 bottles within California: ~ $25
12 bottles within California: ~ $40

The good news: We cover both the surcharge and shipping on all orders over $350 or on orders of 6+ bottles.

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We know we're not always the cheapest option, and that's okay. With free shipping, subscriber perks, and carefully selected wines, we know you're getting great value without any inflated prices or fake discounts.

How Tariffs Affect What You Pay

Tariffs have increased wine costs across the industry. Since wine passes through producers, importers, distributors, and retailers, a 15% tariff can become a 25–50% increase on the shelf. Our approach is simple:

We don't use tariffs as an excuse to raise prices. If our costs change, our prices change—up or down. No extra markups, no built-in buffers.

And tariffs don't just affect imported wine. Many American wineries also pay more for imported bottles, corks, barrels, and equipment.

How wine retail pricing works (a quick primer)

The Producer
The winery grows the grapes, makes the wine, and sells it at a wholesale price that covers farming, production, aging, and labor.

The Importer/Distributor
For imported wines, importers and distributors handle freight, customs, warehousing, sales, and delivery to retailers. Whenever possible, we work directly with importers or producers to help keep costs down.

The Retailer (That's Us!)
We purchase the wine and apply our retail margin, which averages about 35%. That covers warehousing, packaging, insurance, credit card fees, our website, and the day-to-day costs of running a small business.

Taxes and Fees
Federal and state taxes, compliance costs, and shipping regulations all add to the final price.

Every step adds cost, which is why the same bottle can vary in price from one retailer to another. Our philosophy is simple: keep margins fair, price honestly, and let the quality of the wine speak for itself.

Why we do this

Andy (me) reinvests every dollar this business earns back into Harvest. There are no outside investors or private equity firms behind us. Just a genuine passion for finding and sharing great wine.

Every pricing decision comes down to one question: Can we keep this business sustainable while treating our customers fairly? If the answer is yes, we move forward.

We know wine is a luxury, and we never take for granted that you choose to spend your money with us. Every purchase supports honest producers, careful storage and shipping, and fair, transparent pricing.

Thank you for supporting our small business. It truly means the world to us.