Barrel Cost Question - value depreciation

[4score]

If a new 60 gallon American Oak barrel cost $350,

What value would you assign to it after 1 season of use and after 2 seasons and after 3 seasons?

My guess would be $350 new, $175, $75, $40.

What do you think?

 

[ColemanM]

Are you trying to buy or sell a barrel? In my humble opinion, a barrel is invaluable. You pay up front a huge sum in hopes that the barrel will be in rotation for years. Throughout its life, the barrel serves different purposes until ultimately it is specifically used for micro oxidation of the wine and oak alternatives are used for flavoring. I think a barrel holds its value throughout its life given it is cared for. If you could buy a second fill barrel it would still be worth the investment.


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[LeChat]

If a barrel is still in good condition, the only thing that you lose is the oak addition.

I have seen many people selling and buying used barrel for almost the same price as a new one. Maybe a 20-30% discount.

Even if in poor condition, people will still buy them for furniture or decoration. How chique !

 

[JohnT]

IMHO, $350 for a new barrel is an amazing deal. Around here, I have never seen them below 450+ and (depending on the time of year) seen them as high as $700. At $350, I would be purchasing new every time!

IMHO, you take a risk with a used barrel. You do not know what was in it or how the barrel was cared for (when you buy used). To me, a used barrel is good for breaking apart and making chairs or side tables with the wood stock. That being said, I feel that no used barrel is worth more than $100.

 

[4score]

I realize that $350 is a great deal. I convinced a local winery to add an extra barrel to their annual lot order and was able to leverage their discounts.

The logistics of working with a large 60 gallon barrel are just pretty extensive for me. Just moving it and finding a location for cold storage are tough. I'm going to give it to a friend who has room for it in his wine cellar room. In it's place, I'll get a 30 gallon flex tank and a 30 gallon barrel.

 

[syncnite]

I consider my barrel more valuable immediately after the first season because that's the sweet spot - not releasing oak too fast nor too slow.