I have been raising the pressure lately, asking clients why they bother having a cellar door if they are not signing up customers to commit to ongoing purchases.
Many cellar doors struggle to cover the cost of running them. So why bother?
When wineries sell wholesale, they build a relationship with the customer and expect ongoing sales. The wine club should be exactly the same.
Most club members commit to four cases a year aligned with the seasons, with $250 per case being the ‘sweet’ spot.If the commitment is less than $150 per case, the member is less likely to be a member for long.
Four dozen is only one bottle a week, which is nowhere near enough for most members.
Consequently, many members will purchase additional wine when there is a new release or vintage stock becomes available, or they will be members of multiple wine clubs.
When the customer leaves your cellar door, they are not likely to ever buy your wine again as it simply isn’t available at their local shopping centre.
Signing up visitors to your wine club is a sure way of making cellar door very profitable, providing maximum profit and drastically increasing the bottom line.
Aim to sign up at least one customer to your wine club every day.
Nick Cugura is the director of Ezy Systems. Email nick at email@example.com or visit www.ezysys.com.au
• This article first appeared in the September-October edition of WBM – Australia’s Wine Business Magazine. Subscribe now!