July 2014

Tasting Room Conundrum: To Charge or Not To Charge

Have you ever questioned the value of providing a discount to customers, especially the ones that sign up for a wine club at your tasting room? A survey conducted by Silicon Valley Bank/WBM helped to answer that question. They found that the average length of time a customer remains in a wine club is barely over 24 months, and it does not appear that those customers receiving a discount upon signing up for a club stay in the club any longer.

They concluded that a better question is not whether to offer a discount on the first purchase, but how to keep that customer in the club and continually buying your wine. SVB on Wine contends that you must know your customer’s likes and preferences, must send a different shipment each time, or allow the shipment to be tailored, and perhaps offer benefits to long term wine club members.

The short answer is that you haveto keep that customer happy and coming back for more. If you’d like to learn more, we can help tailor your wine club program to increase membership retention.

Massachusetts opens for DTC Shipping

Starting January 2015, Massachusetts will allow limited, regulated winery-to-consumer shipments: Massachusetts’ adult residents will be able to purchase wines directly from wineries licensed by the state to ship.

The move comes after years of closed door laws. The change in Massachusett’s law brings to a close a decade-long effort to open the state to direct shipping, pulling it out of the ranks of Pennsylvania, South Dakota, Kentucky, Utah, Mississippi, Delaware, Alabama, and Oklahoma.

“The budget language is based on the model direct shipping bill being used successfully by the majority of U.S. states. It requires wineries to apply for a state-issued shipping license, to mark boxes as requiring signature at delivery, to pay taxes, and to limit the quantity of wine shipped to individuals.” — FreeTheGrapes.org

Read the full press release here.