Wineries - The Key to Your Success is in Your Inventory!
Having worked with hundreds of independent wineries over the years, we’ve noticed a common thread between the haves and the have nots, the successful versus the unsuccessful. The wineries that are successful know their inventory inside and out, and they also know all their numbers. They are constantly looking at what items they have in stock and what they have coming down the pike. They know what’s hot, and what’s not because they look at actual sales trends, and they do not make decisions based on what they THINK is selling.
Believe it or not, what we think is working is not always what is working. Conversely, sometimes there is some random wine that is selling like absolute gangbusters. Wineries that understand inventory and sales backwards and forwards can make sound decisions about current business and, even more importantly, their future.
How do we define success in this context?
Successful wineries develop tools to help them forecast how much they will sell based on trends;
They know what they are long on and what they are short on;
They schedule meetings to review their inventory weekly or monthly;
They have a short term and long-term plan for every single wine and every single vintage;
They have a pulse on their business.
Once our “winery stars” understand what’s working and what’s not working, they make sure they can make money supporting the items they are promoting as they move into future vintages. Successful wineries know:
Their COGS (Cost of Goods Sold);
If they’re making money in DTC and if they’re making money in distribution;
It makes sense to blow out old vintages and not drown in old inventory - get as much cash as possible before it’s too late, and clear the decks for current releases.
How younger consumers buy vs. the boomers of 10 years ago.
Finally, successful wineries not only know their numbers (shameless Shark Tank reference), but they also aren’t afraid of them when they tell a different story from what they want or expect.
The first priority of a successful winery is to assess the health of the business and plan for the future; hiding in the tasting room, washing glasses, failing to act - these all lead to disappointment.
The best run wineries figure out exactly what is happening now, and they make important decisions on our evolving reality.
The great news is that once you really “know your numbers”, you can create a plan that makes sense for you and your winery. And, most importantly, you will be able to rest easy knowing that you are moving forward in a thoughtful way. If this all seems overwhelming, reach out to us, and we can help!
The Real Winery Solutions Team
PS: Want to learn more about how to make your winery successful? Reach out to learn more about our consulting services info@realwinerysolutions.com or sign up for our mailing list at www.realwinerysolutions.com.
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