Follow My Wine Reviews on Pinterest

When I first got started on Twitter I had high hopes of posting frequent reviews there but it never really worked out. It was partially due to the 140 character limit but the transient nature of the medium ultimately kept me only reviewing wines there as part of an organized Twitter live tasting. But with [...]

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DRC Lafite Languedoc! [China]

Simon Staples, aka @BigSiTheWineGuy who is sales director and Bordeaux buyer for Berry, Bros & Rudd, tweeted this photo. Notice anything amiss? Here were his comments: Romanee Conti and Lafite together? In a “Vin Rouge Sec”? From the Languedoc? Here it is!…..Gotta be a 100 pointer!! He added in response to a commenter that he [...]

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Bluff Dale Vineyards

The Winery at Bluff Dale Vineyards The Grapes around Texas ©2012 Half of every adventure is getting to your destination and our trip this year was no exception. We decided to take a different route to the Hill Country this time around to check out some places we have not had the time to see … Continue reading »

Source: http://thegrapesaroundtexas.com/2012/06/02/bluff-dale-vineyards/

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Do Case Discounts Actually Stifle Wine Purchases?

This question has been on my mind for some time so I thought I'd get it out there for discussion both from consumers and retailers alike.

If you're like me and many of my friends, your cellar is full, you've got more wine than you need and yet you're always in the market for certain specific wines. If a retailer has a wine you're looking for, and that retailer has a pricing model where for example a mixed case is 20% off - what do you do?

Do you put together a 12 bottle case of other wines you know you'll eventually drink? Do you get together with friends to split a mixed case? Or do you consider the whole production a hassle and delay the purchase indefinitely?

Are case discounts actually having the opposite effect they're intended to have?

There are basically three pricing models in stores in this respect: Low, medium, and high case discounts.

  • Low
    On the low side we have operations where the first bottle is offered at the maximum discount. There are no case discounts.
  • Medium
    In the middle is a more moderate 10% - 15% discount for a mixed 12 bottle purchase.
  • High
    At the other end of the spectrum are placed where 25% or even 30% discounts are offered for mixed case purchases of 36 bottles. Typical margin for a retail wine shop is 33% so when a retailer offers a 30% discount it's usually what's required to get the prices down out of the stratosphere.
For both the middle and high discount case purchase models, sale items are typically excluded because offering a wine for 30% off would create a situation where the retailer would sell a product for less than they paid for it. Not that a retailer would like to do this, but it's illegal in Massachusetts. Sale items usually count towards reaching the required quantity of bottles, but they're not discounted below their sale price.

Which model works best for consumers? And which is most effective for retailers?

My reason for writing this is I often find myself not buying from retailers whose model requires hefty case purchases for favorable pricing.

If there's one thing a deal hound hates it's paying more for something than he has to. Even if it's just a few dollars here and there, it's a percentage game because over time the dollars add up.

Some retailers will give you a case discount if you're a regular even if you buy just 2 or 3 bottles. While this sounds good in theory in reality it's annoying to both consumers and retailers. It's annoying to consumers the first time they visit a shop and the employee who typically gives them the discount doesn't ring them up. And it's annoying to retailers because once a customer gets a discount they expect it forever.

What do I Like?

I like a model where I only have to buy what I want, and everything I buy is at the best possible price. I like receiving emails offering specific wines at very aggressive prices that I can pick and choose from, buy what I want, and over time build towards a case purchase. Then, I'll either pick it up at the store or arrange for shipment a couple times a year.

This is different than what I look for when buying, for example, a bicycle. Or tires. I don't buy bicycles or tires often enough to sweat it. I just visit a local shop or two, consider convenience and service, and go with my gut instinct.

But when you're buying wine again and again it pays to think about this stuff. 

Consumers: What do you think? Looking back over the past couple years which models have earned more of your business?

Retailers: What are your thoughts on this? How did you decide to go with the case discount model you're using? And what trends have you seen as you've run specials offering deeper discounts with lower quantity purchases?


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New Wines from South Africa

We?ve been fans of wines from South Africa for a couple of decades, but it?s been more than a year since we?ve tried anything new. Happily, our friends at Vineyard Brands took care of that again by sending us several samples for our consideration not long ago, and as is usually the case, we found [...]

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