Wine BIDS (merged thread, everything concerning the BIDS program in California)

WINE TALK
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Hello Berserker Friends!! We are thrilled for the upcoming BD15 festivities!

On a separate note, I am curious how everyone feels about the Wine BIDS that we are starting to see pop up in most California wine regions.

Essentially, it is a surcharge placed on all sales (wines, merchandise, events, non-wine items) and to be passed along to consumers and remitted to the local wine region’s organization. The funds are to be used for marketing, protection of the area, and to drive traffic.

This shows up as its own line item and is calculated as percentage of the sale. The percentages are pretty nominal (1% - 3%) and certainly earmarked for a good cause.

Since the consumer is ultimately the one that this will affect, I am most interested in how all the Berserkers feel about this. I appreciate any and all feedback and understand that this is all OPINION.

Thanks in advance!

-Jeff

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Its similar to what were seeing in real estate, though it seems more centrally organized. Its just the way things in general seem to be moving as a way to hide the recent leaps in cost.

Not a fan.

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Thanks for sharing your thoughts!! I appreciate the feedback!! Cheers

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I’m mixed on the concept. Is it the consumer’s role to pay for marketing a product they’re buying? Is it the consumer’s role to pay through a line item for marketing a product to potential customers? I understand the concept of not having increase the listed price of a bottle if it’s a pass-through to a trade group for marketing.

Should it just be a cost of doing business? However, it’s more transparent than embedding that cost in the wine, which is subject to sales tax in most states. All in all, it’s not a significant charge to the buyer ($1 on 2% on a $50 bottle) for a couple of bottles, but it adds up quickly. I’d rather not pay it if I’m already a customer. You don’t need to market to me!

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basically another sales tax. in general more tax is bad in my book

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Hard no. Fund the advertising out of your revenue. It’s not a “good cause” unless all of it goes to environmental protection efforts, in which case raise the prices and contribute to the good cause from the higher margins.

This just seems like a “convenience fee”.

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Seems to be another gimmick to tax consumers. We have enough gimmicks and taxes in California.

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I don’t know, most people in CA seem happy to vote for more taxes as long as it doesn’t come out of their pocket. So since I don’t live in CA or buy CA wine I feel like I’m abliged to say the more the merrier!

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Reminds me of the add on surcharges that we see in restaurants these days. I think sellers should cover these kind of things even if they have to add 1-3% to their prices to do it

I look forward to your BD offers, Jeff

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It dates all the way back to the French Revolution

Charge 'em for the lice, extra for the mice
Two percent for looking in the mirror twice (Hand it over!)
Here a little slice, there a little cut
Three percent for sleeping with the window shut
When it comes to fixing prices
There are a lot of tricks I knows
How it all increases, all them bits and pieces
Jesus! It’s amazing how it grows!

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If I’m on the fence and you add an undisclosed surcharge at checkout, I’m likely to bail. Might just be on principle though. Build it into your price if it’s something you believe in and then tell me how you are making a difference in the world on top of what you produce.

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“This surcharge can be removed upon request.”*

*Are you really going to have this awkward talk with your server in front of friends and family you cheapskate?

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Jeff,

Care to share your feelings on this and why?

And care to share why you feel Santa Barbara County should not explore when regions north and south of us are - and at least one has already passed it?

And where are they hoping to get 3%? Seems like an exaggeration, no?

Cheers

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Hey, Jeff! Long time no talk, my friend.

Hello, everyone! I’m the GM at the Santa Barbara County Vintners Association. I used to have my blog on the site here. I’ve been focused on Santa Barbara County since 2008. Got my dream job to work for the region in 2018. My first paying gig in wine.

I’ve lived and breathed the SBC region for a long time now. Truth of the matter, we are getting outpaced by our neighbors. We’re one of the least funded regional organizations. Even though we’ve won two CDFA grants to market to all of Southern California. We also won Region of the Year in 2021 on our own merits…no PR or ad buy.

We proposed the BID in 2019. We would have been the trailblazers. We technically had it. But we shut it down since some of our region’s vintners were outspoken about it. So we listened to their voices.

In the meantime, Temecula took our proposal, replaced their name with ours and passed it. Their budget went to 1.7 million. They are now way ahead of us. Even with the grants we won. Talking to them, they’ve received only one minor complaint in 2+ years of running their wine BID.

Next will be Paso Robles. They project to get 3.5-4 million a year from their BID. At this point, we have to go for it. Livermore has one at 2% (ours would be 1%). Monterrey, Mendocino and Amador are also in the process of adding a wine BID.

Ours would be a penny on the dollar on DTC sales within CA. The BID would not apply to any out of state purchases. Wholesale is not touched. You spend $50 on a wine at the tasting room, .50 would be applied.

THIS IS NOT A TAX!!! Gov’t does not get a PENNY of this! Won’t even see the funds. 100% goes right back to the industry. We would finally be able to advocate (we’re one of the most highly regulated regions as well) and market effectively.

If we achieve the Wine Preserve, and you buy wine in SBC, you, as a customer, will personally take part in taking our region to the global level it deserves. I’ve had the true pleasure of pouring our wines for international buyers at Wine Institute events recently. They love our wine!

Here is a link to all the info if you want to take the time: https://sbcountywines.com/santa-barbara-county-wine-preserve/

I’ll be at Falltacular again this year…I’m the one bringing all the SBC wine down! Feel free to talk to me about it!

Appreciate your time. So grateful to be a part of this amazing community!!!

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1000005481

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I have No skin in the game- but why do you (3rd party) feel the consumer should pay for 3rd party (insert industry/organization/etc) benefits when it benefits said 3rd party? Shouldn’t it be the members of said 3rd party and or the 3rd party itself?

The above sounds exactly like a tax, regardless if it goes to the Gov’t.

As a previous poster pointed out- charge more for the product and do what you want with the proceeds. Just my two cents or in this case 1-3%.

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Whats the projected take home on 1%? Budgeted split of that take home between marketing, preservation, etc?

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If it’s such a worthy and dividend paying endeavor, the membership should already be paying for it. This is just more fee creep, and like its cousin gratuity creep, really turns me off.

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Phil, let’s chat at falltacular.

Can’t wait to see you again.

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As a non-profit representing a region…we are 100% dues based organization. A lot of our producers are so small that they can’t afford dues to be part of the organization. This effort would allow every SBC producer to be a part of the organization and not have any dues to pay.

Not sure what product you imply to charge more for.