Let’s say you’re a newbie buyer for a store. One with potential. And space. And good placement in THE metro area. But you’ve never had that reputation for catering to really connoisseur like customers and the selection reflects that, to where it kind of resembles a more neighborhood-y every day just wants to get “lit” person sort of store. But that’s changing - new space, new vibe, and most important of all - you’re stocking a new temperature-controlled cellar from scratch. Also you’ve managed to squeeze in a few new products to diversify those shelves. It’s on-going. Slow and steady.
Again the challenge here is the store’s existed for years with not appealing to a very “collector” sort of crew but has the opportunity to do so, but I need that sort of base first to prove to an owner that we can in fact get those people in here (without alienating our other clients). So, what do I do? How do I build a customer base of more savvy clientele who would seek me out to find them good juice when we’re a store that has customers that make bee-lines for Josh? And while the locals have to have money to be locals, it’s also a case where two really famous ‘culty’ wine stores happen to be sharing neighborhood with us so I’m also here trying to get a slice of pie from stores that have years of a very local and incredibly passionate customer base.
Sadly this is likely what will ultimately doom your plan and frustrate you into finding a new job. Regardless of what he might say or what you want to believe the owner has built the existing store the way he wants it and he’s happy with it. As long as he’s in charge, he will likely undermine your attempts to shift in little ways that will keep the train going in roughly the same direction with maybe a 5-10% shift.
The only way to seismicly shift the direction of a business must begin with new leadership. Sorry to be the bearer of bad news but I experienced this recently and wasted 4 years trying to change something that was never going to happen.
I get that you had a bad experience. Ownership has made some changes; more space and a temperature controlled cellar. The owner may have hired Rina to expand the store’s offerings.
Absolutely, they say they want change and they take steps towards that which includes hiring somebody in a new position. And I don’t mean to say that they don’t want any change. They do want change, but typically there’s a large gap between what they actually want and the vision of the new person coming in. It’s highly unlikely that the owner has the appetite for the disruption that it would take to effect a whole-hog customer turnover at the scale that Rina is envisioning. It’s a well documented fact that if a business owner really wants to see seismic change, they have to start by realizing their own limitations and turning over the reigns to a new leader.
But to Rina’s original question, if you want to attract high end wine buyers, you just need to have the wines that they want at attractive prices. I don’t know anybody that’s so loyal to one store that they won’t add a new one with good offerings. That requires developing good relationships with the reps because you are the new guy in town and you are going to be taking allocations from those other stores with longstanding relationships. That’s going to be the hardest part and will take several years. For example, if you want a DRC allocation, you need to move a lot of WD product for multiple years before you can sniff a few bottles, whereas the other guy that’s been working with WD for decades already has done that hard work.
Within the constraints to ‘not alienate our other clients’ and two existing high-end wine shops nearby I suggest on-site tastings and a printed and emailed newsletter of unique wines the other shops don’t have. Undercutting their prices is another idea, but seems unlikely to be effective as uniqueness could be a better draw, rather than price, and keeping margins will keep the owner happier. As an example, near where I live is a decade-old liquor store that carries unique stuff, publishes entire inventory online, and has pick-up ordering. It’s a great time-saver and nobody else in town carries some of their stuff, I think – I say “I think” because I don’t have time to chase down a bottle across 3-4 stores or to call.
Doing interesting in store events, developing a mailing list, having a good crm where you know customer preferences and can alert them for things they would like (or things they like and have already bought at good prices).
LTV is everything. You don’t care about individual transactions. You only care about LTV - every decision should be through that lens. Getting allocated items and selling them at great prices, for example, doesn’t do anything to maximize LTV.
Who is your target customer and what can you do to keep them forever?
Start with that, and everything should flow accordingly.
I want to thank people who replied. I did take some of the advice in this thread to heart. @Andrew_K in particular gave me a good reality check to how much I can accomplish. I’m trying to read stuff about LTV right now.
Anyway, now that I’m done with the busy season, I can reflect on how much I managed to do. For the most part, I very much filled our red wine selection (non-cellar) with everything an everyday store would need. I diversified a lot of things, and focused on SKUs that were more affordable so we don’t have to sit on things that don’t sell. It’s mostly worked out. I plan to do that with white wine. Baby steps.
The high-end buyers are still missing so the cellar is sparse. However, I did manage to sell (and then restock and selll again) some italian stuff, and it’s absolutely clear that’s where the money is right now. I want to pivot our focus to high-priced barolo. I’m also trying to write a guide to the cellar so staff know how to handle high-priced items and selling them when I’m not there.
I’m currently trying to see if we can actually get our inventory on wine-searcher so someone might be directed here but I’m not sure how much of a userbase wine-searcher has. Either way, I’ve set it as a processional goal to try and help us at least get on their retailer awards but improving a selection/regional list so much that we can be noticed for it. And we do ship throughout the state and are expanding platforms.
Our tastings are our strength; the new space is pretty and spacious so we can do several at a time. I need to manage setting these up with smaller distributors so I can highlight some of our more off the beaten path offerings.
I have a LOT of work ahead of me and I’m really feeling invigorated by having time to focus on smaller projects now that the holidays are over.
I am curious about this approach. I’ve done tastings a couple times and stores never really kept me on as a client. I wonder if you could convert some tasters into a monthly or quarterly subscription or recurring themed purchase to move them forward on their wine journey. Also advertise a birthday/events tasting package on the website and in-store.
I can provide a customer’s input. I recently have switched most of my buying from a neighborhood-y store to one that you’re describing as a goal.
For me it’s a mix of the selection (a lot of small-grower French and Italian) and their email marketing that focuses on telling the story of the wines. My old shop had maybe 1-2 grower champagnes, and this place offered at least 10-15 over the last few months. Not only that, they offered them in a way that really made me want to try them.
I still get my glou glou and some Cali standards from the old shop tho. Plus I like to drop in and chat, which always leads to a few bottles.
Perhaps some sponsorships of events that collectors attend would help? Such as donating some wines to a local charity auction, or something like that, to associate your name with those types of connections.
I would suggest something indirectly related, networking with other wine professionals. NYC (assuming that’s where you are at) is incestuous and it helps to know people to get buzz and eventually allocations. Go to as many trade tastings as you can and meet people. Other retailers, wholesale reps, sommeliers, etc. If you are friendly and open minded the connections will trickle down to your store. At tastings talk up the producers, maybe they will like you and agree to do an in-store tasting.
If you can, go to restaurants and get friendly with the sommeliers. Expensive proposition but helps build street cred. Customer likes Wine A at Restaurant X and wants to buy some. Sommelier says you can get it at Rina’s store. Also, I don’t do it (don’t even have a smart phone) but Instagram seems to be the way to win any narcissist’s heart. Hammer away at it.
Madrigale helped make a name for himself with his large format by the glass pours. Find something somewhat unique and shout it from the rooftops. Agree with others that most collectors aren’t all that loyal and availability and pricing attracts the flies. Also lots of folks out there truffle hunting for cherries to hold and flip. After awhile you will smell them out, decide if you do or don’t want to let them behind the velvet rope.
Don’t try to be all things to all people, recipe for failure. Become strong in a few areas and expand from there. The kind of clients you want will usually share their enthusiasm and the wines they want. Some might even bring in bottles for you to try. When Wheeler was my Skurnik rep he used to bring us wines he didn’t even sell. Made a big impression that he was a fellow wine lover. Your clients can help lead you to the right wines to stock.
Lastly, for you and the owner, STAY LIQUID. You will fall in love with wines. They will not sell. Accept this as reality. Blow them out a little above cost. Reinvest in something that will make your margin. The white knight is not coming, stop waiting. The longer you wait the more holding costs and other lost opportunities will erode any eventual margin. Do not end up with too much inventory and not enough liquidity. This will require a great deal of attention and courage.
