The Wine Collector

Practical wine collecting advice from Steve Bachmann, Vinfolio's CEO

 
31
Dec
2006

Criteria for selecting a good wine retailer

Categories: Retailing
My post the other day stressed the importance of using a good wine retailer as a source of advice and recommendations. But, how do you find one? What criteria should be considered? Here's my list:

  1. Price competitiveness – Are mark-ups fair and consistent? Or do you feel the need to “price check” every purchase against alternative sources?
  2. Selection – This encompasses both the number of items carried as well as the quality level and price points within a category. Does the retailer’s relationships enable unique wines to be offered not generally available elsewhere? Are mature wines from private collections available? What about a large and small format bottles?
  3. Special orders – Can the retailer accommodate finding a “wish list” of your wines that they may not normally carry? Are there minimum quantities required?
  4. Reviews and other data – Does the retailer share all available reviews, good or bad, from major critics to save you the time of researching them independently? Does the retailer author their own reviews? What about comparative retail or auction price data?
  5. Staff wine knowledge – How deep is it? Can you easily access advice and recommendations? Do you have a single point of contact that is “your” person? Are recommendations tailored to your interests? Are there frequent tasting or other wine education opportunities (including foreign travel to wine regions or expositions) made available to staff?
  6. Ease of ordering – How easy is it to buy? Is their wine inventory online updated in real-time? Is the stock status of the wine disclosed (i.e., in stock or pre-arrival)? Is the purchasing process streamlined and time efficient? Are orders confirmed promptly?
  7. Customer service – Is it clear from the retailer’s site that service is a priority or is it an afterthought? Is there a dedicated customer service staff? Is it easy to figure out how to make contact with someone who can solve a service problem? Can you track the status of your orders online? What about online copies of purchase invoices? Is there a robust FAQ section of their web site?
  8. Return and cancellation policies – Are there written, published policies governing returns and cancellations (plus all other aspects of conducting business with you)? Can you return a corked bottle or otherwise faulty bottle without a hassle? What about guarantees on receiving pre-arrival purchases?
  9. Climate-controlled warehouse – Does the retailer store its inventory of wine in appropriate 55 degree and 60-70% humidity conditions? Can you keep your purchases there at no charge for a reasonable period? What if you need to store for an extended period? What about purchases made elsewhere? Are fees by the case?
  10. Shipping – Does the retailer ship to other states? Internationally? Are tracking numbers automatically sent upon shipment? Are you notified about failed delivery attempts? Are shipments insured automatically or are there additional charges? How competitive are the shipping rates? Does the retailer have policies in place to ensure shipping only during appropriate weather conditions? Can the retailer assist in arranging freight forwarding services for large shipments (e.g., 40+ cases)?
  11. Local Delivery –Does the retailer offer local delivery services in your area? Are the retailer’s delivery trucks temperature-controlled? Is there a minimum required to have a free delivery? What are the other terms?
  12. Selling customer wine – Does the retailer assist customers in selling their wine? Will they buy properly cellared wine for cash or store credit?
  13. Other wine collector services – Does the retailer provide other collector services you might need such as in-depth collection-building, on-site wine inventorying, and valuation reports?
  14. Management and company stability – Are management backgrounds available on the site? Do they have appropriate business backgrounds? Is there a solid board of directors and/or advisors involved in the business? From press releases and news articles, does the company appear to be growing and financially sound?

If you have another criteria you feel are worth considering, please post a comment.

2 comments:

Does any retailer in the USA meet these standards?
I'm a retailer in San Diego,CA and there are things in this list which would be unlikely for any retailer to adhere to in this market. We have been in the same location for 60 years so we feel we know this market very well. There are retailers who do some of the services you listed and are reasonably solvent but frankly it hard for me to imagine any retailer that meets all these standards. My point is that consumers would be better served by a more realistic template. Most retailers have try to serve their clientele to the best of their ability but to send consumers out trying to find the ideal retailer is sure to disappoint them. Consumers would be better served to seek out merchants who are willing to work with them to satisfy the consumer's needs.

Posted by Brian at Thursday February 22, 2007

My first reaction is that unless you are selling primarily low priced wine, you are not competing solely with local San Diego retailers as the "market" is effectively national. Wine collectors use online price comparison engines like Winesearcher to source wine, in state or out of state, and simply have the wine shipped to them (whenever legal).

I agree that it would be difficult to meet all of the criteria with a purely local market-focused business but there are businesses like ours (Vinfolio) who meet, or are striving to meet, all of the criteria outlined. As the Internet evolves and direct shipping laws relax further, you will see more nationally-oriented players emerge who will use high service levels and depth of selection to differentiate their business from purely local market players. Consider the analogy of Amazon to the local bookstore market. There are still local bookstores but Amazon has clearly siphoned off business from customers who prefer the mix of services and convenience it delivers.

Posted by Steve Bachmann at Sunday February 25, 2007






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