Data Uncorked July Edition
July 27, 2022 | 2-min read
A Note from Bob Terzotis: Data-Driven Wine Pricing Strategy
Stop throwing darts at a dart board. You should know what’s going to happen when changing the price or production level of your wines, and you should have that data at your fingertips!
During these difficult economic times, wineries are looking for an edge to help them address the impact of inflation and supply chain challenges. Raising pricing is just one way to help you maintain margins but making the wrong pricing adjustment can impact volume sales and cause depletion issues that may impact future releases.
Wineries already have the necessary data to accurately measure price elasticities for each varietal and can use that information to optimize depletion too. You can easily use your data to make stronger decisions when adjusting prices. You can also apply price elasticity to prevent mistakes where demand for a particular wine will dramatically slow depletion.
Mather Economics’ Depletion Optimization Tool provides our winery clients with actionable insights, scenario planning capabilities, and 1:1 consulting to help them make stronger pricing decisions and intelligent adjustments throughout the sales year.
Also, a reminder to join Mather Economics at the complimentary Wine Industry Sales Symposium we are speaking at in the next few weeks with our long-time partners, Denner Vineyards and Sixmilebridge Vineyards. REGISTER
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Welcome Newest Wine Partner: Bending Branch
Bending Branch is best known for Tannat, a grape variety that exceeds expectations in the Texas terroir. It was awarded Grand Champion in the 2020 FWSSR / BRIT™ Texas Sustainable Winegrowing Competition.We are looking forward to working with you on your pricing strategies.
Case Study: How a mid-size CA winery generated over $100k in extra revenue from Mather’s price optimization tool.
Mather worked with a midsize winery located in Paso Robles, CA, who sought to optimally price a selection of SKUs for their Spring 2022 release while also staying within their depletion, or “time to sellout” goals. VIEW FULL CASE STUDY
DISCOVER HOW TO PROPERLY CONDUCT A PRICING ANALYSIS AND DEVELOP A PRICING STRATEGY.
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Partner Spotlight: Meet Mark Sinegal of Sinegal Estate Winery
Sinegal Estate Winery has a Napa Valley heritage dating back 140 years through many different generations of winemakers before the Sinegal family purchased the St. Helena property in 2013. After a multi-million dollar expansion and modernization just a year later, they produced their first wines under the Sinegal label.
Meet David Sinegal, Vintner, and General Manager of Sinegal Estate Winery. David is a keen business strategist and a diverse work experience from Costco and Frito Lay to start-ups and joint venture companies. David is a visionary with a passion for marketing and innovation and an unabashedly obsessive eye for detail.
Register: Complimentary Wine Industry Sales Symposium
Join Mather Economics, Denner Vineyards, and Sixmilebridge on August 24 for this Online Virtual Symposium.
Wine Industry Network’s President & CEO, George Christie, will be giving a brief overview of what to expect from the Symposium.
Far too often, important pricing decisions are based primarily on how much competitors and/or neighbors are selling their products for, instead of leveraging data at their disposal to make better-informed, fact-based decisions. The session will feature a panel of winery executives to tell their story as to how they have started using predictive analytics to augment their pricing and inventory optimization strategies in 2022 and the results they experienced. This webinar is for industry principals of any size winery looking to strike the perfect balance between maximizing profitability via the proper pricing strategy while at the same time managing depletion rates at a pre-planned pace.
I Want to Speak with a Pricing Expert
Mather Economics works with the winery to more effectively use their DTC sales data to make intelligent pricing decisions, fully understand and optimize their inventory depletion and building stronger wine club churn reduction and acquisition campaigns.