Question

Topic: Strategy

Wine Proposition

Posted by Anonymous on 25 Points
Hey everybody,

I would request you all to suggest while doing a contract with a hotel or a restaurant, should i got for a % share in their menu. for example - 70 % of wines should be from my company or should i got for volume commitment, like a hotel should pick 10 cases of wines per month.

please let me know what other agreement terms can be offered to sell more wines and alcohol.

Thank you.
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RESPONSES

  • Posted on Accepted
    I think you should go for a % share.This will ensure a definite % sale of your brand.by this you would be fully assured from the sale aspect and can think about some other job.
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  • Posted by Gary Bloomer on Accepted
    If you have exclusive distribution deals with restaurants (meaning they only buy from you), arrange deals with a number of the higher quality eateries whereby they place your most expensive wines at the top of their wine list, followed by the wines you want to give most exposure to (the moderately priced wines that you can get in volume at great prices). This strategy directs the wine drinker's attention to your higher profit goods, thereby increasing the possibility that wine drinkers who want quality wine while not feeling they're being fleeced will buy the cheaper wine ... having first seen the prices of the higher priced wines at the top of the menu.
  • Posted by matthewmnex on Accepted
    If I may, After many years of running a multi million dollar wine distribution company on a national scale, and many more years of commercial experience; here are my thoughts.

    1. Always put your customer first. In this case, the hotel/resterateur is the customer. You can't force them to buy/list wines that they don't want at any price. THye have to sell it on to their end user customers. You need to work hand in hand with the hotel to help them to do their busines better.

    Don't try to plan what you think is best for you. GO AND LISTEN to what the hoteliers have to say and understand how you can be of value to them.

    Hotels and resteraunts have hundreds of wines and suppliers to choose from and they want to carry the best wine list that they can afford dependingupon the type fo clientelle that they serve and the sell through.

    2. From experience, the margins are very thin in this sector for you as a supplier, it is also tough to sell any meaningful volumes in any one establishment so you need many many restaurants and hotels that you are supplying to on a regular basis which means you have to tie up lots of cash in inventory and be ready to deliver at the drop of a hat when they re order. If they re order and you cannot re supply fast, they will buy from somneone else.

    Good luck.

    Matthew
  • Posted on Author
    Dear Matthew,

    I really appreciate your advice and i am sure it has opened up a new door for me.

    Thanks

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