Mather Economics’ distinctive tool provides actionable insights for wineries with precise estimates of price sensitivity and forecasted inventory depletion.
“We are excited to add the Depletion Optimization tool to our service offering for wineries,” said Matt Lindsay, Ph.D., President of Mather Economics. “We often hear that Direct-to-Consumer pricing is a particular challenge for wineries. Pricing strategy and analytics has been the core of what we do for almost two decades. Our team of 50+ economists and data scientists have the training and experience to provide world-class analytics and advise wineries to help them make intelligent pricing and inventory management decisions.”
Taking the Guesswork Out of Pricing and Inventory Management
Mather is now delivering its Depletion Optimization tool to help wineries take the guesswork out of pricing and inventory management decisions. Pricing at wineries has historically been driven by benchmarks to competitors, imprecise assessments of economic conditions, or simply gut feel. The Depletion Optimization tool provides winery leaders with valuable insights into the market response to price changes and scenario modeling capabilities. Mather Economics will develop econometric models of price sensitivity at the SKU level and detailed forecasts of inventory depletion, so stakeholders can make data-driven decisions quickly to maximize revenue. The interactive user interface of the Depletion Optimization tool is designed to quickly answer common questions like:
- Am I on track to sell out of a current varietal too quickly this year, and how much should I raise prices to ensure I have enough inventory to last until my next release?
- How has the COVID-19 pandemic affected my inventory depletion against prior vintages, and how should my pricing respond to meet my year-end inventory management objectives?
- We ran a major case sale promotion in the fall. What impact did that have on my depletion rate?
- We implemented a steep price increase on last year’s vintage. Will that impact my ability to sell my current vintage at my desired pace?
- How will a price adjustment affect my cash flow for the upcoming year?
The Depletion Optimization tool comes with many result-oriented features, including: a 360-degree view of a varietal’s historical inventory depletion velocity across a winery’s entire portfolio, estimates of price sensitivity by varietal, comparisons of performance year-over-year, projections for incremental sales, and the ability to quantify and forecast revenue and inventory impacts by adjusting prices.
Wineries possess all the information needed to make intelligent, data-driven pricing and inventory decisions. The only piece missing is the expertise and experience to unlock the potential of this data to drive revenue and manage inventory. At Mather Economics, we believe that insights are meaningless without action, which is why our team of economists have focused on building this Depletion Optimization tool designed to provide wineries with the information they need to make informed and highly impactful business decisions. Mather Economics’ goal is to provide world-class, cost effective analytics for wineries so they can spend more time doing what they do best—making great wine!
Please feel free to reach out to us to discuss how to use your in-house data to improve your DtC wine club membership acquisition, club member retention (proactive churn prevention strategies) and help improve revenue yield for your current and future releases.