Tuesday, March 22, 2016

The 2016 Wine Market Council's Findings Are Wrong



      WMC: "Millennials Consume 42% of all wine in America"


The Wine Market Council presented their annual 2016 roadshow in New York in January, and using the above slide announced with fanfare that Millennials are now the largest wine drinking population in America, consuming 42% of all wine and surpassing the boomers with 30% of total consumption. They also said Millennials were consuming 160 million cases compared to 114 million cases consumed for boomers (below right chart). 

To many of us in the business the facts appeared grossly exaggerated, but the media ran with the story because it was such a senstational headline. The long-awaited ascendance of the millennial had finally come we were told, and the articles proclaiming the fact hit the wires in waves:


     WMC: "Millennials and Boomers Consume the Same Amount of Wine."


Inexplicably, six weeks later at their Yountville presentation, devoid of any supporting facts or charts, the WMC offered the following totally contradictory statement in their presentation:
"Boomers and Millennials today account for nearly the same amount of wine consumption and Millennials will soon account for decidedly more consumption."


Sunday, March 20, 2016

Last Chance to Participate in the 2016 SVB DtC Survey


Every year when we start the Direct to Consumer Survey I'm always a little nervous about participation. The effort required to sell wine has become more difficult by the day, and owners have to make choices about where to invest their precious time. Survey results could be viewed as nice-to-have versus a critical need, but in this case I'd argue this is a have-to-have for wineries with Direct to Consumer sales.

Monday, March 7, 2016

Current Benchmarks for your Tasting Room


We know that the average winery today has nearly 60% of their sales made direct largely through wine clubs and tasting rooms. How do we know that? Through an annual survey conducted by SVB.

If you have a club or a tasting room, how do you know you are performing at the top of the club performance, or even above the average? If I asked you how many wineries pay for data capture within their comp structure in the tasting room, what would be your guess? 

Today 168 wineries have responded to the SVB Annual Tasting Room Survey and here is the result thus far for that question:


What about the average dollar comp awarded to tasting room staff in your region. Is that of interest? How about the average tenure of a club member sorted out by average price point so you can compare your winery against a winery with a similar price point? Would it help to know the average gain in club members in your AVA last year, or what about the average number of lost members?

Each of those questions are examples of benchmarks that will be available to you for free but here's the catch: The benchmarks are only available to those who take the 10-15 minutes to complete the survey. Isn't that an investment well worth making?

Take the Survey


When the survey is closed on March 18th, we will spend over 200 person hours completing the analysis and will then return charts, graphs, and an excel spreadsheet cleaned of any identifying information. You will be able to dig even deeper into the data if you want.

In May we will host a live videocast to go over some of the results as we did last year.



In the July issue of Wine Business Monthly, the magazine will publish some of the information and conclusions in their annual Direct To Consumer edition.

None of the above is possible without the 10-15 minutes invested in the survey itself. Please consider taking the time to answer the survey questions. Your participation will improve both your own direct program, and help the US wine industry improve.

Start the survey now: http://bit.ly/1U0KuSa 

-----------------------------

If you feel this content is worthwhile, please promote the link in your favorite social media platform, or even better - please forward the link to your winery colleagues and ask them to participate. 

If you would like your AVA to participate, we will also send them free Regional Benchmarks for their own use if we have a statistically significant sample size and an address to send the information. 

Sunday, February 7, 2016

Passion, Cuba, Women & Wine


Duck and Cover

I remember walking to school shortly after the Cuban Missile Crisis. We were practicing ‘duck-and-cover’ drills in our classrooms, and we trained on what to do when we saw the blinding white flash. The propaganda video clip at the top is a great example of the beliefs of the day.


Wine and Cuban Hero Che
Walking to school in the early 60's, I’d plan where I would hide along the route just in case. One of the neighbors had a bomb shelter but after that, it was refrigerators in garages and fireplaces as the preferred hideouts. It was a discomforting time for the Country. President Kennedy embarrassed in the Bay of Pigs Invasion was staring down Khrushchev, the Premiere of the former USSR in a game of nuclear chicken with continental annihilation hanging in the balance.

With that as context, it’s surreal to find myself sitting in a bar in Havana Cuba writing this piece and participating in an official U.S. Trade Mission promoting California Wine. We're not promoting world peace or selling tractors. We're promoting a luxury product to a socialist country. 

Saturday, January 30, 2016

Video Replay of the SVB Wine Report & Chat


The first part of the year has turned into a fire hose of new industry information in the wine business. Right after we released the State of the Industry Report, we all ran to Unified to hear more discussion about industry trends. I missed Fred Franzia's lively lunch presentation Tuesday but was there all week and once again moderated the Thursday General Session. I then came home and got on a plane to Miami where I will leave with the Wine Institute and the Napa Vintners for a Trade Mission to Cuba at 4:00 am Sunday morning.

Monday, January 18, 2016

Final Signup: SVB Annual Report Release Thursday


 

Live Videocast

2016 State of the Wine Industry

Thursday, January 21, 2016
9:30 a.m.–10:30 a.m. PT


I expect this will be one of the most interesting reports we've ever authored. I would like to invite you to join us live for a discussion of the report and wine business with our expert panel: Rob McMillan, EVP & founder of Silicon Valley Bank’s Wine Division, Paul Mabray, Chief Strategy Officer of VinTank, Amy Hoopes, Chief Marketing Officer/EVP Global Sales at Wente Family Estates and Jeff Bitter with Allied Grape Growers.
We will review the findings of the 2016 State of the Wine Industry Report, which is based on SVB’s in-depth survey of wine industry experts and insiders, third-party research and Rob’s unique perspective as a long-time member within the wine industry.
This presentation will include insights on:
  • Changes in the market share of imported bulk and bottled wine
  • Predictions of 2016 sales growth in the fine wine segment
  • Winery financial performance
  • Expected changed in U.S. per capita and total consumption
  • Consumer demand changes
  • Harvest yields and bulk inventories
  • Prediced changes in the opportunities of domestic wine producing regions
  • Bottle price changes  
Please [register] for the videocast and receive a link to the replay and the complete 2016 Wine Industry Report after the live event.
 
________________________________________________________
 
https://svbmeet.webex.com/mw0401lsp13/mywebex/default.do?nomenu=true&siteurl=svbmeet&service=6&rnd=0.2637267404144884&main_url=https%3A%2F%2Fsvbmeet.webex.com%2Fec0701lsp13%2Feventcenter%2Fevent%2FeventAction.do%3FtheAction%3Ddetail%26confViewID%3D4161651942%26%26EMK%3D4832534b00000002c9932a456e19782a61aac551e1bc2c30adc0e477923781318845ca73eec4b901%26%26encryptTicket%3DSDJTSwAAAAJNwt5CmXCKHup0fllmKUf9jGUUvuHHoLVW9LNOpi3cZQ2%26%26siteurl%3Dsvbmeet
________________________________________________________
 
 

Sunday, January 10, 2016

What if you Discount Wine and Case Sales Drop?

  
Source: Nielsen Beverage
      
      Just Slip Out the Back, Jack

It can be a little hard getting revved back up when the year starts. Truth be told, few of us are excited to jump back in full speed. We'd rather slip back to revel in the warmth of the holiday's then start executing on the new plan.

I have a little difficulty finding normal when the year starts because November and December find me researching and writing the Banks Annual State of the Industry Report. Add in Christmas, the New Year, business holiday parties, routine daily business issues and my birthday  - which falls on December 24th, but it's OK if you forgot. You can get me a gift next time. Anyway.... I can't wait to start the new year and find normal again!

Sunday, January 3, 2016

What Does the Wine Business Fear Most?


      Do-Overs

With the New Year's Resolutions on our minds, one related question someone inevitably brings up is "do-overs." If you had a chance to do anything over, what would that be?

I have more than my fair share but I'll throw out one. It's the story of the young lady who agreed to marry me when I was 21 and she was 18. I thought she was a real keeper and we were in love. She said yes! I was so excited until my brand new fiancé said I had to ask her father and then reality started to set in. What if he said no?

Thursday, December 10, 2015

Groundhog Day In Pennsylvania


I've just spent the past 6 weeks researching and writing the 2016 State of the Industry Report. It always sucks the life out of me because its all encompassing 12 hour days without a break, even on weekends. When it's done, I'm ready for something else entirely. I look for re-runs of Friends and I Love Lucy or comedies I've seen a zillion times like Groundhog Day ... which is the segue into an article I saw this morning titled: Pennsylvania: Sweeping liquor Reform bill advances toward full Senate and uncertain future.

Tuesday, October 27, 2015

Picking A Side In the Napa Winery Fight


No it's not Monday when I normally post. I got inspired midweek from Tom Wark who wrote a piece yesterday in his Fermentation Daily Wine Blog entitled Critics of the Napa Valley Wine Industry are Losing Badly. It's a passionate opinion piece of the goings-on in Napa County politics which are overheated with rhetoric. (Rhetoric | rhet·o·ric \ˈre-tə-rik\: language that is intended to influence people and that may not be honest or reasonable.)

Friday, October 16, 2015

Bottle Prices Are Going Up in 2016

How much does this wine cost?

The Annual Wine Conditions Survey is open and delivering interesting early information on supply, price, and many other interesting questions. The survey closes next week but after the first week, almost 300 of your fellow wineries have invested 12 minutes. Why take the survey when we are all busy? Because participants are the only ones who will get complete results.

 

Saturday, October 10, 2015

Open: 2016 Survey of Wine Conditions

 
Take the survey
 
 
Take the Survey
 
What's really going on in the wine business this moment? Can wineries raise prices? What's the supply situation in the Central Valley? Is there good land available for planting anywhere? Where is there too much supply? With the crush in the tanks now, winery owners are starting to think about 2016 and making plans.
 
I started researching for the Annual State of the Wine Industry Report in August and have a good idea what it's going to look like already, but I always like getting another layer of information of the current situation. So for the past decade now, I've led a survey of the current conditions in which more than 600 wineries and the major AVA's from across the country participate every year.
 
Ten years since we started this, I'm told by winery owners that new surveys now show up in email boxes every week. Thankfully I'm consistently told, "We look for your survey and make sure to participate." Why are we so lucky to get this kind of participation? I think there are a few reasons but bottom line, we keep the information anonymous, we aren't selling the information, and we give back more than we take.
 
The survey takes about 10 minutes and in exchange, we send without cost the complete survey results, dozens of relevant graphs, and our early analysis on wine industry conditions. [Last year's survey results].
 
Note the results this year will be released in early December only to those who participate in the survey. Ready to take the survey? Click on the link below.

Take the Survey

Monday, August 24, 2015

Will a Stock Correction mean Lower Wine Sales?


One year ago Monday, I woke to a bit of a shaking. Having been 18 miles from the Loma Prieta Earthquake in 1989, I was experienced enough to recognize this wasn't a run-of-the-mill quake, and in fact for me, this was far worse than Loma Prieta. I live on the fault line rupture and while Loma Prieta was far more widespead and longer, it was also deep and there was no surface rupture. This one was very shallow and far more violent if you live in southwest Napa.

Friday, August 14, 2015

What? Locals Overwhelmingly LIKE the Wine Industry


      Doesn't Everyone Hate The Wine Business?


While Napa is the current poster child for the debate, whether Sonoma, Santa Barbara, Oregon, Virginia, Paso Robles, or the San Joaquin Valley - the wine business has received it's share of public scrutiny the past few years in local press. While "wine country" is viewed by many as an idyllic place to live or retire .... certainly so if you read listings from local real estate agents, that view isn't shared by a non-homogenous mix of anti-winery folks in what is now being labeled in an on-going story of the greedy and detached winery owners and growers versus their communities.

Thursday, July 9, 2015

Wine Business Data Hack: Resources Edition


A Technical Issue?

I spent an inordinate amount of time over the July 4th weekend on the Blog that was released on Monday which discussed the pilfering of 250,000 credit card records from eCellars.

I got so focused on understanding this situation I got a little freaked out yesterday when my company laptop didn't work right, my cell phone started freezing and nobody could hear me when I called, my home internet seemed to be operating at 10% of normal, and then the car battery died. WHAT IS GOING ON? .... just a bad day of negative coincidence?

Sunday, July 5, 2015

250,000 Credit Cards Stolen in Wine Industry Hack

 
ECommerce Payments
 
I've always thought the wine industry should be the most uninteresting industry for cybercrime. Wineries have lots of inventory to steal, but anyone who works in this business knows there isn't much cash to take. It all gets used up in barrels, bottles, inventory, and facilities.

Who and even more to the point, why would anyone bother to hack into a winery? It's not like there are any huge IP secrets to take. North Korea doesn't care about the 2015 vintage. Chinese spies have to get paid more to focus on our Government's and defense contractor's systems rather than messing with wineries I'd think. Pre-pubescent teenagers trying to hack winery computer systems would have more fun trying to hack celebrities' personal sites or play World of Warcraft. That's where young people can really experience virtual power and control.

Besides, the wine business is really a bitty industry; one full of mom and pop shops. So why would anyone bother to try and hack into a winery when there seem to be so many other far more interesting and larger industry targets out there to probe?

That question is no longer academic because today - right this second, hundreds of people in probably 100 separate companies are cleaning up after the personal information of 250,000 winery customers was hacked in a recent data breach. [i]

This is a really big deal. While I've heard no mention of the cost of this, it has to easily be millions of dollars in the aggregate given the number of businesses and impacted people who are cleaning up the mess thus far. And those losses are before considering any fraudulent credit card purchases which may have happened or may still happen.

Sunday, May 17, 2015

Replay of 2015 DtC VideoCast + Chat


Another live videocast is in the can and has already hit summer re-runs on YouTube.

Somebody will soon be sending you some popcorn for you to pare with a pinot gris, so you can settle in with your tasting room colleagues to review the findings of the Wine Business Monthly/Silicon Valley Bank Tasting Room Survey .... feedback-results, whatever you want to call it.

Wednesday, May 6, 2015

SVB Direct to Consumer Live VideoCast


Silicon Valley Bank
 

Live Video Conference:
 
Tuesday, May 12, 2015
9:30 a.m. – 10:30 a.m. Pacific Time

 
Register Now

Please join us for an interactive video discussion of Silicon Valley Bank's 2015 Tasting Room Survey. This promises to be a lively conversation as SVB's Rob McMillan reviews survey results and interprets industry trends in the Tasting Room and the larger Direct To Consumer chanel along with a panel of experts.
 
Sign up for the presentation and receive a link to the replay and the complete results of the Silicon Valley Bank 2015 Tasting Room Survey after the webinar.

Speakers:

Join Us On Twitter:
Follow Rob (@SVBWineon Twitter and join the conversation before, during, and after the webinar by using #SVBWine.


Sunday, April 26, 2015

Should You Ever Discount Your Wine?

 
I'm betting nobody knows who Thorstein Veblen is. Like this picture, you have to be a little cockeyed to know him; be a Jeopardy Champion, enjoy thumbing through pictures of people who look like axe murderers, or maybe you are an economist with little to do with your free time except refresh your memory about a Veblen good?
 
One on-going debate in the wine business where Veblen's theories play a role is price discounts. Should you discount, and if so when and by how much? To get at an answer we'll review some economic basics. (... I know how exciting that sounds but stick with it. I won't kill you with math.)


Saturday, April 18, 2015

How Important Are Tasting Rooms to Success?


Federales posing during the 1910 Mexican Revolution

I am a closet genealogist so when I began dating my wife, I started kicking cans in her ancestors. It turned out that one of her ancestors was a minor player at the beginning of the Mexican War of Independence and a Federale. I think the system was a little less formal than what we experience today.    
But there is a bit of a standoff taking place in parts of wine country. No, the battle isn't with the Federales - not with the ABC, CDFA, BOE, TTB, or FDA each of whom has a regulatory role in the wine business. The battle is over events, tourism, and tasting rooms.

Sunday, March 29, 2015

W20 Group and VinTank Settle Down

 

Its fair to say that I've been involved in the wine business for a long time. I'm old enough to remember Italian Swiss Colony Wine commercials in the 60's,the Judgment of Paris in the 70's, the wine cooler craze in the 80's, and the VinTech fraud that spanned both the 80's and 90's.

Sunday, March 22, 2015

Is Your AVA "Just Like Napa?"

 
Follow the Yellen Brick Road
 
     On March 16th I was invited to be THE keynote speaker at the 21st Annual Central Coast Insights. OK ... maybe I was just  "a"  keynote speaker ... OK fine. Just don't look at me like that. I was just a "basic speaker." There. I said it..... Are you happy now?

Anyway, speaking in Paso Robles I was reminded of something that has always bothered me. The region makes great wines; as good as any place on earth and yet it has gone through constant boom and bust cycles over the years. Grapes from the Central Coast go into both value priced jugs, and collectable wines too. How can that be?

You are probably a wine expert in some form if you are reading this, but do you know precisely where the Central Coast AVA is located? Are you aware of the varietals for which the AVA is best known?

Is the Central Coast "just like Napa?"

Saturday, March 14, 2015

What's the Average Starting Salary in Tasting Rooms?



I used to work in retail when I was a young man. It can be fun when you have a good dialogue with a customer but when alcohol is involved, customers like Miles and Jack in the scene above can make life pretty uncomfortable for public serving employees.

That's when you need someone behind the counter who is confident and knows how to handle those situations. And before that, you want someone who can balance sales and client experience but there is a cost to attract that kind of a person, but how much is that?

Monday, February 16, 2015

2015 State of the Industry Q&A



The Annual SVB Wine Report and the Live Broadcast is complete. For those that missed either one, the replay and report can now be accessed here: LINK.

For those who are looking for some power point slides to use in their own presentations, we've also posted 86 slides at the bottom of the page. Most of them were used in research but not used in either the Report or the Videocast. You are welcome to use the information there - with attribution of course.

The last duty I have for the year is to post the Q&A from the live videocast. This year as seems is always the case, we had participation both Nationally and from about a dozen countries. There seems to be world interest in the US Wine Industry for some reason?

The chat follows and I've littered it this year with the labels of random participants. Feel free to contact me if you have any other questions and I'll get back to you as I'm able.

Tuesday, January 13, 2015

Sign Up: SVB Wine Report Released Next Week


Live Video Conference

Wednesday, January 21, 2015
9:30 a.m.–10:30 a.m. Pacific Time


 

null



Please join SVB on Wine, Rob McMillan, EVP and founder of Silicon Valley Bank’s Wine Division, and an expert panel as they discuss the wine business and findings from the 2015 State of the Wine Industry Report.
 
Rob will be joined by a panel of industry experts, including Paul Mabray, Chief Strategy Officer of VinTankGlenn Proctor, Partner in the Ciatti Company, and Amy Hoopes, Chief Marketing Officer/EVP Global Sales, Wente Family Estates in this interactive video conference, including live viewer Q & A.

This annual industry report is based on SVB’s in-depth survey of wine industry experts and insiders, third-party research, and Rob’s unique perspective as a long-time member of the wine industry.

This presentation will include insight on:
  • Global Economy and its impact on the wine industry
  • Winery financial performance
  • Predictions on 2015 sales growth
  • Wine inventory position
  • Consumer demand trends
  • Harvest yields and their impacts
  • Bottle pricing decisions
  • Bulk import activity
  • Digital trends (CRM, DtC Sales, Social Media, 3rd-Party Marketers, and Compliance)
Sign up for the presentation and receive a link to the replay and the complete Silicon Valley Bank State of the Wine Industry Report 2015 after the webinar.
 

Please share this important industry educational opportunity on your preferred social media apps!!!



 

Sunday, January 11, 2015

Are Wineries Going to Buy Fewer Grapes in 2015?

Buying More or Less Tonnage in 2015?

Self-Imposed Marooning  

I know the above chart is a little hard to read. When I start working on the Annual State of the Industry Report each year in October, the industry starts off a little hard to read too. I kinda go into this almost shipwrecked mode and cut myself off from normal business interactions and then a combination of research, survey, interviews, and analysis eventually gets me to a point where I can start writing and eventually escape my self-imposed marooning. 

What I hate about the delay between finishing the report and publishing, is the world moves substantially at times and my predictions are out in the wind hanging there .... exposed to the elements for all to see. If my predictions were off when the paper is released, who wants to read the rest? Or, if they were on they can still sometimes be a retrospective view by then if events move quicker than expected. It's a little unnerving during the wait, but you'll have to tell me how I did when you read the report and watch the Live Videocast.

The State of the Industry report for this year is going to be released January 21st along with the live video broadcast. If you haven't, you can still sign up for that here: [register].
 

Saturday, December 20, 2014

Santa Karma is Sending You Money in 2015


Putin Claus
This is a wonderful time of year to be a banker in the wine business, or more specifically, it's a wonderful time to be me! ...... holiday parties, presents, my office filling with client wine gifts keeping me in a jolly mood through the holidays, and then my birthday  - which falls on Christmas Eve just in case that slipped your mind this year?
 
The birthday part was a mixed blessing growing up in a family of six kids, and that cost me years of therapy. But I'm better now. I've learned to be thankful for all things, and this year in particular I'm getting my birthday AND Christmas wish; about $2 trillion in stimulus from World Despots.

Saturday, October 18, 2014

Will Bottle Prices Increase in 2015?

 
The Annual Wine Conditions Survey will close this Friday. Thus far over 300 of your fellow wineries have participated from across the entire West Coast and Nation. It takes 12 minutes to complete and helps us all understand industry dynamics better. Participants are the ones who will most benefit for small time invested, as they are the only ones who will get the complete results and added analysis.
 
Please join your fellow wineries and participate in the survey before the close Friday [LINK].

Saturday, October 11, 2014

2015 Grape Purchases and 2014 Yields

 
 
I always love this time of year. Harvest is winding down for many and past mid-point for everyone. Fermentation is moving through the normal process with wine makers trying to control the pace as if they were trying to steer a stage coach careening down a hill. The smell of grape must littering the fields starts to intertwine with the smell of burning wood stoves as the temps start to cool toward the end of the month.
 
But the thing I like the most about this time of year is starting to work on the Annual State of the Industry Report and that always starts with the Annual Wine Conditions Survey which is now officially open [Link To Wine Conditions Survey]

Saturday, October 4, 2014

What is Important to Research for 2015?

 
I'd like to get your thoughts and comments on something.
 
As most know, each year I author the SVB State of the Wine Industry Report that is released in early January. Prior to writing the report, we run a survey of the wine industry that is supported by all the major AVA Associations in the country. The survey takes 5-10 minutes to respond, is open for two weeks. This year the survey starts October 8th.... that's this coming Wednesday already! 
 
For that small investment of time, participants receive the complete output along with custom charts and analysis that will help you prepare for 2015. Not even our clients receive that content if they don't participate in the survey.
 
If you would like to participate in this as well as the Annual Tasting Room survey we run in the spring, you can email me at rmcmillan@svb.com and I will add you to the invite list.

Sunday, September 28, 2014

Should You Enforce Your Wine Club Contract?

 
On occasion I get suggestions about something on which to blog. I really appreciate the ideas and use them when I can. This past week I got an email from a follower who suggested I post on their experience with a disgruntled wine club member. The review they got in YELP is a good place to start:
"The wine club is a total scam! I only wanted the wines that weren't in stores so I was told I had to join their club. I didn't want to but I got a discount on the wine. Once I got my first shipment which had all the wines I wanted, I just cancelled the club. Then the as*****s charged my credit card without even telling me! I was like, WTF? and was told by some bitchy tasting room person that I signed a contract that said I had to give back the discounts if I didn't take both shipments! Like who reads contracts? And just because I quit their winery, they didn't send me concert tickets they said they would."

ACME Winery


For the second week in a row I'm asked to anonymize the winery. So we officially have a trend keeping the semi-innocent anonymous to protect the wicked. But in this case, there are some things I can tell you about this winery to give you a flavor of their business model and their side of the situation:
  • They are 100% direct to consumer - nothing is sold wholesale
  • They sell less than 7,000 cases
  • Their average wine sells for $60 per bottle up to almost $400 per bottle
  • Half of their wines are completely allocated and in very high demand - selling for double the retail room price on the secondary market.
  • Their wine club contract requires a one-year commitment and if cancelled in the first year, the discounts have to be repaid to the winery. That part reminds me a little but like the old CD clubs.
  • They include concert tickets for new wine club sign ups but in this case the shipment was made and the customer quit before tickets could be sent.
 

Business Would Be Fine Except for the Employees and Customers

 
So how do you handle a consumer like this who games your wine club agreement? My response is to change your system.

Over the years I've talked to numerous wineries who tried to sell a wine in lower demand in exchange for a consumer getting their hands on an allocated or high scoring wine that was in high demand.

To my thinking in brand building, you really want to make wines that are in demand, and build demand for all your SKUs. Getting a consumer to take a wine they don't really want doesn't build demand for that wine. It may even have a negative impact on how your overall brand is perceived.

Think of this analogy: You find a really awesome pair of custom made Italian shoes in your size, but to get them from the manufacturer, you have to buy a second pair of shoes that are ugly and don't fit.

If you are the buyer, you give zero value to the ugly shoes that don't fit. That means for you to feel like you received fair value for the purchase, you had to feel the price you paid for the package of shoes would be fair either with or without the second pair of shoes.

To go a step further, you may feel that the second pair of shoes has negative value because you now have to go find someone who likes the style of the second pair and has the right size foot. That's going to cost time and effort. If you are making those shoes, what you really want to do is identify a consumer who values ugly shoes in that size. ( .... hope that didn't take analogy too far ... )
 

Is the Contract Legal?

 
I can totally relate to this frustrated winery owner. I didn't mention it, but they did in fact send the concert tickets to the consumer too. So they totally lived up to their side of the deal and got hammered in a review for their trouble. Was their contract legal? Could they charge back the customers credit card for the discounts?

A wine club contract can be a legally binding agreement but that's really a red herring. The practical reality is if you are talking about contract rights to a wine consumer, you are well past building your brand and off topic.

I'll probably get kicked out of the Bankers Union for saying this, but I don't think contracts matter that much. You can have a legal right to something, but in the end what really matters is how you do business, no matter what a contract says.
 
If a social media review is unfair, shake it off. You wont please everyone. Some people are just unhappy and carry a chip on their shoulder. But negative truthful reviews are an opportunity to check on how your business is done and improve. Is compensation motivating the right things? In this case, is the tasting room staff messaging the club program effectively so their are no surprises.
 

Responding To YELP Reviews

 
I feel as though the question of what to do with a negative YELP review has been discussed sufficiently in the blogosphere, but the short treatment is: 1) You can respond as a business owner to a negative review. 2) You can't have a review removed unless the post was a violation of YELP's user agreement but good luck with that. 3) You have no right to have your brand removed from YELP. 4) Don't pay a company who says they can remove negative reviews. They can't.
 
If the reviewer seems crazy, ignore it but if the reviewer sounds reasonable respond to it and show you really do care about providing good service. Interestingly though, for some unknown reason most wineries I checked this week don't respond to reviews at all. You can also encourage people to write reviews which will push the negative review from the front page at least.
 
Finally - thanks to the anonymous winery for suggesting the topic. Hopefully they will get some good thoughts from the community.
 
------------------------------------< ||o|| >---------------------------------
 
What are your thoughts about wine club contracts? What advice can you offer this winery regarding their approach? Do you have any similar customer service stories to share and if so, how did you handle it"
 
Please join this site at the top right of this page for updates and new posts, sign in and offer your perspectives for the benefit of the community.
 

If you think this information and discussion is valuable and want to spur additional discussion, please share this post on your favorite social media platform.