tag:blogger.com,1999:blog-941731830705031230.post4702266959395001649..comments2024-03-11T03:24:58.582-07:00Comments on SVB on Wine: How Will You Keep Up With Changes In DtC?Rob McMillan rmcmillan@svb.comhttp://www.blogger.com/profile/12396624790174552807noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-941731830705031230.post-34675887885718463372012-09-24T16:57:59.722-07:002012-09-24T16:57:59.722-07:00........I've been duped!........I've been duped!Rob McMillan rmcmillan@svb.comhttps://www.blogger.com/profile/12396624790174552807noreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-41406416271267063102012-09-24T14:49:06.127-07:002012-09-24T14:49:06.127-07:00Thanks anonymous--$5000 an hour is just what we ch...Thanks anonymous--$5000 an hour is just what we charge Rob for advice, not industry clients. MJ Dalehttps://www.blogger.com/profile/13149525005423352281noreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-49495822002577592872012-09-24T14:23:45.048-07:002012-09-24T14:23:45.048-07:00$5000 an hour.. Give me a break. Tell us somethin...$5000 an hour.. Give me a break. Tell us something we don't already knowAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-38126049229436346322012-09-24T11:49:07.809-07:002012-09-24T11:49:07.809-07:00Very good question Jennifer:
The answer will vary...Very good question Jennifer:<br /><br />The answer will vary by winery, brand essence, price point and volume/scarcity. At 4000 cases, most of your sales should be direct to the consumer to ensure profitability for your winery. In addition, I would supplement this strategy with a very strategic use of wholesale partners--positioning your wine only in channels where you will get maximum exposure to your target customer. <br /><br />In other words, avoid the wine list where your brand is overwhelmed with thousands of other wines unless you are somehow featured prominently or the restaurant is so well know you will benefit from the halo effect. Likewise the wineshop where your wines languish at the back of the store; seek to place your wine with purveyors that know you and your wine and can share the story with customers. <br /><br />What many DTC enthusiasts often forget is that wholesale partners serve the very same customer our DTC plans are targeting. Meeting the needs of the consumer is what is important--and for most brands consumers, even very high end consumers of scarce fine wine typically buy these wines through direct and indirect channels. Successfully managing both channels, therefore, is best for the customer AND the bottom line.<br /><br />Tracking customer sales through the wholesale channel still remains a challenge in our industry as well as many other industries. Several thoughts: <br /><br />--Sponsor joint events with key wholesale partners inviting their customers and yours, helping both of you determine specific customers that love your wine. Just make sure you add information from customers you meet back into your customer database after the event! <br /><br />--Simply ask your best DTC customers where they buy wine in restaurants and wine shops to help decide where to focus your efforts (and find more customers just like your best customers) <br /><br />--Be sure to colloborate with your partners to learn what you can about end sales to individual customers. Access TradePulse or BDN data to better measure depletions. (If you use a sales partner to represent you in the wholesale channel they can often share these reports with you).<br /><br />As long as your overall strategy is well orchestrated--a strategic wholesale presence will benefit DTC sales; a strong DTC program will also benefit your wholesale partners. <br />MJ Dalehttps://www.blogger.com/profile/13149525005423352281noreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-75631355244894724812012-09-24T10:03:37.004-07:002012-09-24T10:03:37.004-07:00RE: pricing wine fairly. I understand your point,...RE: pricing wine fairly. I understand your point, not wanting to gouge our wine club members, that makes sense...it brings to question the use of wholesale channels for the purpose of increasing exposure of your brand and eventually increasing DTC traffic toward your brand (wether it be online or in a tasting room). So I wonder, and my question to you MJ is, What are your thoughts on wholesale channles with respect to a small 4000cs producer? Does being present in local and bay area wine shops/restaurants actually result in increased DTC traffic? and if so is it neccessary to track those successes?...and if so What do you consider to be the best way to measure those successes? thanks.jenniferhttps://www.blogger.com/profile/07368507608399214206noreply@blogger.com