The Sunflower YPR: Yen Price Ratio

YPR is a measurement we're using at Sunflower to track the relationship between the USD price of imported sake relative to its yen retail price. 

The formula for YPR is simple:

[Japan retail price (USD) / OR wholesale price (USD)] = YPR

A higher number means that our Oregon USD price is lower: less expensive compared to the yen price. 
A lower number means that our Oregon USD price is higher: more expensive compared to the yen price.

For example, consider a sake that costs 1500 yen/btl in Japan. Our Oregon distributor charges us $20/btl. The YPR is 1500/20 = 75 YPR.

A higher or lower YPR isn't inherently better or worse. There are so many factors involved in pricing: how many intermediaries were involved in the export/import pathway (anywhere from 1-8+!) the distance it traveled (+/- thousands of miles), the tariffs and duties applicable at time of arrival, the method of transport to the freight forwarder, domestic transit, brewery volume discounts, brewery negotiated prices, distributor volume discounts, importer and distributor margins, how well everyone compensates their employees, spends on sales, spends on fresh inventory...

The YPR should not be interpreted as evidence of bad actors, price gouging, or other negative factors, absent of other evidence. Because of all of the above variables, it's very difficult to pinpoint the cause of higher prices. The best we can do as buyers and consumers is track those differences, assess quality personally, and shop accordingly. I just think it helps to have visibility on the numbers to assist that process.