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How much are you willing to spend to sell one case of your wine at full price?
One way of thinking about this is how much you might discount your wine to retailers and distributors, plus the cost of marketing your wines distributed across the number of cases you sell.
This isn't an idle question. All will be revealed shortly. So please, give your answer (as a percentage), along with your reasoning, in the comments. Thanks in advance!
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Hmm. The traditional costs of moving wine (discounts to customers, retailers and distributors, commissions to salespeople, a constant stream of bottles poured as market and tasting room samples) comes out to an average of 35% of our retail value.
On the other hand, with a few simple and cost-effective internet tools I am able to maintain my own website, a winery blog, a wine-related blog, separate monthly email blasts to direct customers and retailers, maintain a presence on culinary and wine sites, and encourage pre-orders and re-orders.
All this for the infinitisemely small price of .05% of our annual production income, or about 16 cents a case. Remarkable.
Posted by: Mary Baker | December 02, 2006 at 08:23 AM