I think that a lot of the pricing in the tea market comes basically from supply and demand. For example, White Peony is not really in high demand, but it is an excellent and delicious type of tea. Because there is not so much demand for it in the global market, and enough supply of that tea, it is possible to buy good quality White Peony at very reasonable prices. (On top of this, Tea Hong’s prices and selection for white teas are definitely better than average.)
Much of the market for Chinese tea also reflects the Chinese market as well. In this market, some premium types of green tea and oolong tea are regarded as “famous teas” and can fetch very high prices. Examples of such green teas are Longjing, Biluochun, and Huangshan Maofeng. In China, oolong teas from the Wuyi mountains are often quite expensive. However, in Taiwan, there is a different tradition of oolong teas, and certain “high mountain” varieties are the expensive ones. There are many myths and legends surrounding such famous teas, and there are always rich people willing to pay exorbitant prices for the very best quality of the most famous types.
The good thing about this system is that for those of us who are looking for value, there are many great choices among the lesser known teas. For example, white tea in general is quite affordable because there is less demand for it. Notice that the one white tea that is most expensive is also (and this should be no surprise) the most famous — Silver Needle. This is one of China’s famous teas.
The problem comes in for people who want some famous tea because that is all they know, but then pinch pennies and drink a very low quality version as a result. This is very unfortunate. If they had picked a lesser known type of tea, then they could be drinking an affordable tea of high quality. I think the Tea Hong approach is smart, because they only offer “famous teas” at good quality, so nobody is stuck with poor quality teas.
As an example, in China’s Zhejiang province, it is possible to buy a 100g bag of Longjing green tea for approximately $2 USD! Of course, that tea is horrible quality and is not even a pale shadow of what any decent Longjing tea tastes like. In the same store, in the same aisle, a high quality tin of Longjing may cost many times as much. At Tea Hong, 50g of good Longjing tea may be around $20, and since it is good quality of a famous tea (and sometimes a special variety), the consumer is getting a good value, and nobody is cheated. Now, if someone likes Longjing but can’t afford good quality Longjing as a daily drink, then there are other options like Silver Curls Spring, which is a very enjoyable tea with some similar qualities.
