Useful Tips
What to Look For - and Avoid!
As the fine wine market is unregulated there have been occasions in the past - and some instances in the present - when unfortunately some companies have been set up to sell wine to investors with only one thing in mind: "To make a quick buck." In most cases this involves inflating the value of the wine being sold to the investor while at the same time claiming the price to be the "market price." In some cases, a brokerage may claim to charge a very low commission, or a commission only when selling a wine for a client. Unfortunately for the client, the wine they are purchasing may be worth considerably less than they are being told, and this undeclared mark-up will take away any chance the investor has of making a profit on their purchase.
To ensure that you are not being misled, always do your own research. When dealing with a brokerage, always insist on independent sources to verify that the price you are being quoted is the right price. Unfortunately, some companies will divert you to websites that may seem at first to be independent, but have in fact been set up by the company you are talking to. To steer you through this minefield, we have listed below an independent and reputable wholesaler that you can check prices with.
Another tip when trying to decide who to do business with is to study the brochures you are sent - either by post or by email - and the websites of these companies. Are they full of pretty pictures but light on information? Are they vague about their charges, do the websites in particular mention specific charges / commission / fees at all? Always look for total transparency.
At Aston Lovell we have helped many clients who have been overcharged in the past: In many instances we will sell a portfolio for an individual free of charge, whether or not they are a client of ours. If you have been overcharged by a company and have experienced problems, please contact us - we might be able to help you.
In general, the Fine Wine market is a profitable, stable and stress-free market. The important thing to remember is that most companies do things properly. By following this basic advice and performing your own due diligence, you can be assured that your investment will be perfectly secure, and hopefully profitable.
