Different States have different rules. We have a very large retailer that is famous at running “loss leaders”. He will take a couple wines that always sells at X, and run big adds selling the wine at 62%X. He plan is simple, he draws people in for that wine and they buy other wines/alcohol while in the store. The winery can get peed, but there is not much they can do. The retailer is large enough that the distributors are not going to stop selling to him.
Taking it out on the winery with which you’ve had a good relationship only hurts the winery more. Me, I buy all the deep discount wine at retail I can, and continue my relationship with the winery.
Chris,
when you supported the wine, did you buy it at any time less than retail or ‘gray’ prices? That is, did you have a flip option during your loyalty?
I’m on the “cellar masters” stuff w/ Ch. Montelana and find that i can buy it for less - but, I hope to visit one day and think that my loyalty via that model gets me some additional access.
It is certainly frustrating, but, not much we can do about it.
This winery pretty much prices at retail to direct customers - but they have lowered prices on a few recent releases. I don’t think there is a reasonable flip option. Honestly, I think they are hurting.
But as a more relevant follow-up, while they never directly responded to my inquiry (which still irks me - I’ve been on the list for ten years - if I ask a question, can you at least acknowledge it?), since that inquiry they have twice given mailing list customers a heads-up to deep-discounting offers from retailers. That’s all I can ask.
I stayed on their list and just placed a supplemental order tonight. As a consumer, all I want to know is that I am not being taking for granted (as the one person on the planet willing to pay full price for the wine).
If you are paying more for wines that are widely available in the open market, that seems a little crazy.
BUT- if you are being given access to wines that aren’t available to the open market (single vyd, special bottlings, library, small lots, etc), paying msrp for the standard juice pushed through distribution is the norm.
If you want to get really sad, think of what the winery sold that wine to the wholesaler for before it got to Cindy wine.
I think that they are definitely giving customers a reason to wander off. In most similar circumstances I would guess that even when you are getting the wine from the club at 25% off that only brings it down to or just below regularly discounted retail, particularly when factoring in shipping. As a result, unless it is a winery that from time to time gets huge scores and sells out or does not otherwise distribute some wines, there is no reason for a customer to remain loyal.
I really do think that in the current environment wineries need to be more aware than ever of the value of loyal direct customers and more than ever treat them as valuable. There are just too many wineries from top to bottom where the current vintage or prior good vintages can be bought for less then the direct pricing. While there is a fine line between preserving direct customers and undercutting retail, I think that there are very few wineries who shouldn’t be doing 10-20% off for case plus purchases and free shipping/we’ll pay your sales tax type things to incentivize direct customers to keep ordering. A lost direct customer is likely never coming back and may lose interest direclt and not even buy at retail and now more than at any time previously there is more competition at every price point for those dollars. This is true whether it is the $25-30 wine that you are discussing or something selling for $200+.