Schemes and tricks used by Napa Valley's most elitist vineyards to stop wine that costs up to $500-a-bottle being sold at bargain prices over fears discounts will tarnish their brand

Napa Valley's most elite wineries are panicking over their reputations being ruined as their fine wine is sold at discount prices.

It is a winery's worst nightmare for the product they dedicated years of time, effort and resources into to be sold at a price below its worth. When this happens, wine-drinkers don't see why they should pay full price after already purchasing it for a bargain price. 

Even the most high-end wineries use schemes and tricks to tempt buyers. Businesses offer free shipping - to make customers feel like they're saving money while keeping the actual price of the wine high. 

Other wineries networks of wine snobs to try and sell bottles down back-alleys, but this can be a risky game, wine experts have revealed, as some 'bad folks' will re-sell a bottle for a far cheaper price and destroy the brand. 

The best wineries of Napa Valley have been fighting to keep the hefty price tags on their exclusive bottles as high as possible, which means fighting wine stores across the country who try to sell the luxury alcohol at a discount. 

A bottle of Robert Craig Winery's 2019 Howell Mountain Cabernet Sauvignon costs $118 to buy straight from the Napa Valley winery. However, last month a San Francisco retailer sent out a promotional email offering the wine to its customers for $99.95.

Robert Craig's CEO, Elton Slone, said the promotion caused him 'sleepless nights' as customers began to complain that they had overpaid, according to the San Francisco Chronicle. 

'I can't even tell you how frustrating it is,' Slone said - as more retailers are now asking if they can sell the fine wine, awarded 97 points by critic Antonio Galloni, for less than $100. 

Discounting in the world of fine wine is a huge no-go, as it's widely considered a brand killer. 

But other Napa wineries are facing similar problems as they lose control over how distributors, stores and restaurants are choosing to price their wines. 

Scott Becker is the owner of Realm Cellars in Napa - whose least expensive bottle costs $175 and most expensive bottle, a 1500ml bottle of their 2014 red magnum, is almost a whopping $4000.

Becker insists that pricing wines is a complicated process.  'There's an art and science to pricing,' he said.

The cost consists of taking into account the price of goods, which for Napa's finest wineries includes millions of dollars worth of prime California real estate and a whole team of staff and equipment to nurture the vineyards year-round. 

On top of that - there are expert winemakers to be hired, tasting rooms to be built and brands to be designed and managed.  

'It's not just the cost to produce that single bottle, but the overall investment into the project,' Becker said. 'Price also sends a signal, for better or worse, about quality.'

Some wineries hire special consultants to assist them with make-or-break decisions that could lead to great success or a huge loss. 

Kerrin Lax, owner of high-end Yountville wine shop and tasting room K. Laz Wine Collection, is an advisor for such businesses. 'I can tell them, "to me this is a $100 bottle of wine",' she said.

When the price is finally decided - there's almost no going back. 

Employees of the wineries monitor websites and restaurant menus to make sure prices remain above a certain threshold. 

If a wine is being sold for too cheap, some wineries will even go as far as to buy the bottle back to protect its prestige and reputation.  

'You wouldn't walk into a Rolex shop expecting to get a discount on a Rolex,' says general manager of Calistoga's Venge Vineyards - whose wine typically retails at around $100.

When the company noticed that a Colorado store which was going out of business started selling their products at a clear-out sale price, they sent a distributor out to the location to pull all the bottles off the shelf, according to Williams. 

However, luxury wine prices have been trending higher over the years - and while there used to be only a handful of wines that retailed for over $500, there are now many. 

Even wine collectors are put off by the price tag of some expensive bottles. 

Becker, who sells most of his wine for over $700, has softened his view on pricing over the years. 

“We want the retailer to be successful. If some of these promotional deals and sales tactics work, and it gets somebody to try your wine, then knock yourself out,' Becker said - adding that a consumer will reveal what the wine is worth.