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The Wine Collector
Practical wine collecting advice from Steve Bachmann, Vinfolio's CEO
 
14
May
2008
Is your wine retailer loyal to you?
Categories: Buying wine , Retailing

As any wine collector knows, it's difficult to find all of the fine wine you want to buy from a single wine retailer.  As noted before in Buying smartly from wine retailers, you increase your odds of obtaining scarce fine wines by concentrating your purchases because most retailers make some attempt to reward loyal customers with priority access.

Our approach to cultivating loyalty 

In early 2007, Vinfolio created a customer priority program.  Benefits increase with reaching higher annual spending levels ($5,000, $25,000, and $75,000+).  The prime benefit is priority buying access to scarce, allocated, and/or highly rated wines.  These wines are generally highly sought after but given excess demand, I'd always prefer to offer them first to customers who have demonstrated their loyalty to Vinfolio.  So that's what we do -- in a very systematic fashion.

How it works 

For newly puchased wines that fit our criteria for scarcity and high ratings, we literally offer these wines in three successive 24-hour periods to an expanding group of priority customers before releasing any remaining unsold wine to the general public on our website.  Wines that sell out at a given level are simply not presented to the next level.  When signed in on our website, priority customers are recognized and wine available at their benefit level is made available to purchase.

Moreover, the email notification such customers receive that announces newly available wines is personalized to reflect whether the customer already owns a wine being offered and in what quantity (based on the contents of their VinCellar cellar management software account).

Bottom line: If your retailer is not reciprocating your loyalty in some proportionate manner to your spending level, then take your business elsewhere.

Note: This post was inspired by a book excerpt titled "Loyalty is a Two-Way Street" from a new book called Marketing Metaphoria that was written up in a recent article in the Harvard Business School's Working Knowledge email newsletter.

9
May
2008
Fine wine spending in a recession

Do the wealthy think we're in a recession?  Yes (see yesterday's Wall Street Journal story, Wealthy See Recession, Poll Says).

Is it affecting their spending on fine wine? No (based on Vinfolio's growing sales volumes as well as those of some other fine wine importers I know).

Why not? Demand for fine wine is determined on a global basis and other parts of the world are still going strong enough to absorb finite supplies.  Moreover, "spending" really only occurs when you consume your wine.  Until then, you are merely converting cash into another asset class, which in this case is likely to grow in value.

8
May
2008
Hypocrisy in wine shipping laws
Categories: Shipping-related

Why is an out-of-state retailer treated any differently than an out-of-state winery that is selling wine into a particular state?  The nature of the purchase transaction is exactly the same.

Return of the Stone Age in Illinois

Yet that is exactly what is happening in Illinois.  After over a decade of out-of-state retailers being permitted to ship to Illinois consumers, a new law is set to take effect June 1, 2008 which bans such purchases while continuing to allow out-of-state wineries to ship into Illinois (read Illinois opens to direct shipping - i.e. for wineries only). 

When the world is moving to purchase more and more goods online, why is Illinois going back to the Stone Age?   Answer: political contributions/influence and in-state self-interests trump free market competition.

I found it particularly ironic that the above linked article ends with a quote from a representative of the Illinois Department of Revenue trying to justify the state's position when the state is losing tax revenues from such sales that it could capture if it permitted sales by out-of-state retailers to occur.

California at risk too

As Tom Wark over at Fermentation points out in his appropriately titled post, Fixing Stupid Laws, California is at risk of making the same mistake as Illinois.  Why would some major California winery trade associations and even groups claiming support of free trade principles like Free the Grapes support such a ban of out-of-state retailers selling to California consumers when even in-state retailers welcome it?

The best solution

It's time for a federal law setting standards for regulating wine shipping by any licensed party (wineries, retailers, and even wholesalers).  Anything short of that will continue the patchwork of 50 sets of state laws that change constantly based on acts of economic protectionism and local political self-interest.


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