Thread: Tea and Prices
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humantenacity humantenacity is offline
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Default Tea and Prices

As always Mike hits the bullseye on the subject!

>I feel that the use of the english
>language is extremely "loose." Same applies to some of the tea
>retailers that I see who sell their teas as "premium" at 2-4 dollars
>for 3 ounces or 12 sachets. If that's premium than what are the teas
>that are sold for at 15 dollars an ounce at places such as
>rishi-tea.com, nalatea.com, thefragrantleaf.com, and
>inpursuitoftea.com?


Yes the english language is "loose" but I have news for you, the
chinese language is even more "loose" sometimes when it comes to
tea!LOL

The bag versus the loose is an old question and always comes down to
which is better and is a matter for the most part of personal taste and
opinion. For me I prefer loose from a known vendor or grower because of
the method I prefer to prepare my tea. This is not to say I am a total
purist, I certainly have some favorite bagged teas that I use on those
"rushed" days when I only have time to throw it in the travel mug and
run.

But what exactly are you paying for in the bag versus in the loose is a
good question, Mike points out so well that most of our teas in the
states have at least a 100% mark up. Being involved with tea and tea
growers and growing for more than 30 years and involved in the major
auction markets of China, Taiwan, Sri Lanka and India, I can attest to
these mark ups. But are the mark ups always worth it?

Price does NOT always indicate quality tea, especially in the States.
Americans are kinda new to the tea world in many respects and very
naive to many things about tea

Like everything else in a capitalist market demand always drives price.
And keeping up with the Jones in the tea world is also true. Many of
my pu'erh friends MUST have only the best, not always because it is the
best, but because the price tag says it's the best.But like everything
retail, vendors must make money to stay in business. So 100 to 400%
markups are necessary to support the vendor.

I have an excellent friend who provides terrific quality teas in
Manhattan. I know he is at least 300% higher than another friend with
similar teas in Pennsylvania. But his mark up is because he is in
Manhattan and the real estate costs are what drive his markups.
Conversely I know a vendor in a little town in the USA where real
estate is very low as is cost of living but their prices are still a
300% mark up.

There are several "boutique" teabags that are served in those fancy
coffee shops that are just a tiny step above Lipton or Red Rose. Now
there is nothing wrong with Lipton or Red Rose. They are what they
are., mass manufactured for the masses creating a consistent cup of tea
though not perhaps a great cup of tea but for penneys a cup. But those
"boutique" teas are another matter often costing 3 to 4 dollars a cup
and offering little to justify the price.

>From the vendors, too often, price gouging is also occurring and again

demand is what is the driving force.

Now the flip side is this, a cheap price for say a high grade oolong or
West Lake Dragonwell or a 50 year old Guan Yun Gong Bing pu'erh cake
for $500 USD is also a serious problem and in this case you get what
you pay for. So a cheap price is also an indication to avoid tea just
as is overpriced tea. Knowing your market and tea is important and this
is why I think manufacturers like Lipton have survived unchanged for so
long. People in the states are not prone to taking time to learn about
something in depth but a serious tea drinker has to take the time to
learn the trade bascis.

As stated in Mike's post "know thy vendor" is excellent advice. Another
piece to add to that is if you don't know your vendor ask your friends
in tea for advice on vendor and their opinions on their dealings in the
tea market. There is great power in networking and a choir of voices.

Allen Miller