Price Elasticity and Inventory Depletion Optimization
Two of the most important areas for a winery (outside of making great wine) is understanding the price elasticity of each varietal for the purpose of pricing future releases, and having an accurate inventory depletion reporting and scenario planning model.
Wineries have all of the information they need for successful, accurate planning and to understand the pricing power of their individual varietals. This information, used in the proper manner, provides the ability use your customer sales data to take the guess work out of pricing decisions at the beginning of the sales year and to make informed adjustments for mid-season course corrections.
Mather Economics has developed an inventory depletion optimization tool as a part of our DTC services platform. With access to your fulfillment system data, we can develop an interactive visualization and scenario planning tool that allows our clients to understand their current inventory depletion by SKU, evaluate the price elasticity of each varietal, and scenario plan actions they can take to change depletion trends and positively impact revenues.
Below is screen shot from the depletion optimization tool and showing a historical look at past vintage depletion rates along with multiple scenario planning options.
Connect with us to see a demo of our current DTC tools, review recent case studies, or hear more about our work in the Wholesale space.