Well this is not intended to become an essay but rather a brief overview how the Bordeaux market works. From the en primeur (future), the members of the “game”, relation between each players such as negociant – courtier (broker) – chateau. Different relations and similar (or even identical) missions.
The "smaller" chateau’s (not classified) have a different network as the classified growth, the great growths work through courtiers and the negociants, the Chateau’s do not sell directly to clients (while smaller properties, certainly do) Personal note, I do remember seeing wine on offer from Prieure Lichine (Margaux) directly at the property and pretty sure certain others do sell smaller quantities as well(see belolw)...

OK, they no just sell with funny figures
But back to the issue, chateau do not sell directly to the clients (general rule, let's accept it for the time being), they sell to the negociant in Bordeaux and the negociant will then sell further the wines, to the market in France, UK and to the world…
Between chateau and negociant there is also middle man, the courtier (broker), Mr. 2 %. When a negociant wish to discuss something with a chateau he/she first has to contact the courtier. After the appointment is made, the 3 people (courtier, chateau, negociant) start to have the discussion. What type of client do we want to sell, what will we organize, what about the image, if the negociant needs wine for a “show” he has to ask the courtier and sell the strategy to the chateau (through the courtier). The 2% goes as a commission into the pocket of the courtier at every sale, of course the negociant will have to pay this fee.
One chateau can have more then one courtier (broker), there are roughly 150 courtiers in Bordeaux. How do you become a courtier? In the past you put your name onto a list, and you got it. Today it’s a bit more difficult, you actually have to do an exam.
To get a different price from a different courtier? No, rather unlikely but the allocation, volume can vary of course due to the relationship with the chateau.
Sticking to the courtier is mainly history but also an important work is done from Mr 2%. Not just shifting one paper from one side of the table to the other, but to work with classified growth is not as difficult (or rather put it this way, having the knowledge on them is far more common), but there are 5000 petit Chateau’s. Looking for a great C. de Bourg or C. de Blaye is far more difficult task, some courtier also specialized in this area, knowing the different Bordeaux AOC really well.

Chill-out mood in the cave
Classified growth do not sell their wines, this is the work of the negociant. The chateau’s can go out and represent themselves on different shows and trade fairs, events, but finally the negociant will sell their wine. The chateau can recommend a negociant (as it also can recommend a courtier for the negociant). The chateau has to make sure it delivers a good wine, keeps the great communication, the sales in the negociants job.
To have a courtier and negociant in the same department? Impossible today, the idea would not be received well in Bordeaux (as they could cut the margins, etc.). Yet negociant and chateau owner can be the same (such in the case of Ch. Batailley, owned by the Casteja family which is also the owner of negociants, Borie-Manoux). A chateau or negociant has no obligation to pick a certain courtier.

Greetings from Bacchus
What is a good courtier?
The negociant is going to respect your strategy, in terms of quality and price. The courtier brings the negociant and chateaus together at the table. There for it is important (mutual) that everyone is respecting each others interest, such as: strategy, image, quality and price. Some negociants work well with restaurant if a chateau wants to be in a particular market or in a restaurant there might be a more specialized negociant for this job. Yet chateaus do not want to see their wines on supermarket shelves at discounted (low) prices (we can happen and happened in the past).
Chateaus sometimes like to send people out to certain supermarkets and check the shelves, on the back label there is a number and according to this it can be identified which negociant sold the wine to the supermarket (and which then did not respect the “strategy”), the chateau certainly will make a call…and ask questions.
Everybody has to play the game. The courtier does not just know the wines and the chateau’s but also the negociant houses, which is heavy in a certain market (such as Asia).
The courtier does not travel he/she only has the relationship between the negociant and the chateau. The broker (courtier) has a special knowledge in a given region. Knowing the volume and the sample. Small properties can sell directly without the “future” market, there is generally no law against selling directly anyway.

New vintages at Ch. Margaux
Any classified growth could decide to sell directly, many times over…but they don’t. Why? It is a rollercoaster ride: history, economy. Sometimes stuff is easy to sell, but when the hard times come back. What then? The negociant, courtiers would be needed!
The broker (courtiers) is licensed by the state, government of France. Wine is tasted in spring and if upon delivery two years later some mistake is made (e.g. with the wine), so the quality is not right, not the same quality when it was sign (of course barrel sample is different then bottled wine), the broker can cancel the contract. The 2% is an effective insurance for the negociant, but this was (is) rare to call upon.
Against all odds sometimes perhaps chateaus consider selling directly or at least discuss this (as mentioned above) opportunity but the Place de Bordeaux works just nicely (for the time being) as long as everyone is playing the game.
How much margin is the negociant making? It depends of course, but in en primeur 12-15%, perhaps. The negociant is paying for the wine, storing it (several vintages), promote the wine, paying the sales team, etc. While the courtier is the middle man (no need for the big warehouse, no risk, no money).
Classified growth and chateaus' want to control the retail price, its not a question to make a special deal or to move the cases, as they know they will move the cases sooner or later. Strategy, image and price what counts.
When do you pay the chateau (the negociant)? In the future (en primeur) market, usually in 3 different periods: July, November and February, but before the release of the wine. In instalments.
If not en primeur it’s usually 60 days. The negociant of course welcomes all allocation when the vintage is great, sale is booming, but the problem is the “bad” vintage, if you would refuse the wine (or given allocation) you would be moved to a black list. You need a great network as negociant as well, if you refuse 2007, don’t ask much for 2009. But of course they will pass it on to the merchants as well. They would say: don’t just support us when the vintage is great, but also when it’s less favourable. Just a short footnote, merchant can pass it on to the customer/consumer as well. By selecting customers who buy all sorts of vintages (did buy in the past, not just the “good” ones and a wide range of perhaps second wines and lesser growths as well, hence supported the merchants through the years), so the game is on and it moves round and round.
The non en primeur market is like the stock market, prices fluctuation is almost everyday. And the quotations move up and down. If a bottle of Latour (just a simple example), goes for 400 EUR bottle, the negociant can sell it to the market with a 10% margin…more or less. A law of supply and demand or fear and greed, if you wish.

Sun set. What will hold the future Bordeaux trade, tradition or innovation or...?
How important is to be correct with the price is inevitable as for instance the en primeur market is a very transparent market. You see the prices when they released and can compare it instantly (on the internet, etc.) the different merchants (hence merchants have to be careful on margins too) in your neighbourhood (or country). So a restaurant can receive the same wine from 5 different negociant within the same market. In the same street you can have 3 different retail shops selling the same wine, but all got it from a different negociant. Therefore it is quite important that everyone respects the price and the game.
USA is not always an easy market as some retail shops are more prepared to take a lower margin. Some have a huge stock, make bigger promotion, but the chateau is going to beware of that, they would hate to see if their image is broken through ill communication.
An example was when DIAGEO moved out of the en prim market, as they had a huge stock (especially classed growth) the Bordelaise were slightly nervous. Yet the Place the Bordeaux did buy some stock back or simply did not shift the wines and took them back to avoid low sale.
Some châteaux’s keep some of their stock and don’t release all to the future market (en primeur). Normally they will put 80-85% on offer and keep the rest in the market for later and play with it, like a stock exchange (as mentioned earlier).
Normally it all goes out in one tranche (yet the merchants like to release second and 3rd tranches with higher prices to the consumer), only big names like Latour, Margaux working with several tranches.
How do you decide on the price? It is a game of waiting, see what others do. Owner of the chateaus travel around the world, they’re clear with the economic situation, 2008 for instance it was a good vintage, but economic situation was quite difficult. People invested a lot in 2007 without much money, so 2008 was meant to be decreased in price, sometimes 10-15% or even more.
When the campaign starts you can not touch the price. If the chateau is selling the wine for 100 EUR you must sell it as a negociant for 115 EUR (with the appropriate margin), everyone is playing with the same rules.
First tranche is speculation and second tranche I can increase my price if the demand is great. During, before and after the campaign the press has a huge power. To go against or without the press is very difficult.
In some vintages nobody wants to buy? You carry the stock, and support the sale with other -great- vintages (e.g. 2009).
You do hear it quite often from the Bordelaise that their wine is meant to be for drinking and not for speculating on re-sale, auctions, etc. They really don’t believe in wine (Bordeaux in this case ) as an investment? Seems so, or you hear it more and more often....
If you sell your wine for 2-3 EUR more a bottle it will be a lot of money. Considering that you “shift” 85% of your stock within (e.g. 25 000 cases of twelve, 300 000 bottles, etc.) a few weeks. So for instance 5th Growth will look at each other and the “waiting” game begins. The negociant is looking around and advising the chateau as well on the economic situation of certain markets. Is the USD weak against the EUR for instance, what is the mood in the UK. All markets are more or less important for the Bordelaise, some more then others.
We have to see the bigger pictures, while a few decades ago there were only a handful or market players, such as the traditional domestic French market, the very important UK market, USA and perhaps the rest of Europe. Today it is quite different, there is Far East Asia, China, Russia and some other emerging markets.
The markets have to be satisfied as well with nearly the same volume of wine.

No doubt, people in Bordeaux love to invest
The Bordeaux chateaus reinvest a lot of money, their profits to maintain and even increase the quality. Investors from outside of the wine business become ever more important. To see Bordeaux 20-30 and more years ago and today, now –it is a huge difference. Chateaus are focused on quality, very much.
(Notes from Bordeaux, people, merchants, negociants, courtiers, chateaux....)