Club Update - October 19, 2007
Why all the Fear about Regulatory Compliance?
Compliance reporting and respective taxes used to be
based on each individual business's "honesty" in reporting to each respective State exactly
what was sold and shipped into the State. If the winery chose not to report the sales it was
not difficult for shipments to fly "under the radar". These days, shippers are required to
report to each State the items (wine in your case) that are shipped into the State as well
as the details. This makes it possible for each State to track sales tax and permits back
to the wineries.
Why the fear?
There is money to be made by people who sell
compliance services and too often fear is created as a tactic to motivate wineries to
take action. But do NOT FEAR. You do not have to ship to every State. You can start by
shipping to States that do not have complicated compliance requirements and expand into
other States as they become profitable for you.
Compliance does not have to be difficult. As an example, our solution for club management has several
features which audit and inform our clients about any missing information prior to filing dates as well
as providing complete reports which support the filings. In Active Club Management this is included in
that system. Check with your existing solutions to see how your current tools can support your needs.
Leroy Lucas from WineCompliance Pro adds that there are 3 areas of Compliance to focus on;
1) Getting permits to legally ship to states
2) Reporting on what you shipped
3) Insuring you follow the state rules for shipping limits and restrictions.
There is a free ROI calculator that will help each winery determine if it makes sense to invest in
compliance solutions. The individual states themselves are also good resources of information.
The ROI calculator is located at www.winecompliancepro.com.
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Bring Customers Back After the Holidays
The Fall and winter months provide terrific
opportunities to build relationships with customers. Taking a few extra steps could
significantly increase repeat business in the coming year. Here are a few suggestions
to consider:
Classes and Tastings:
Holidays are filled with entertaining and this
is a good time to offer a few classes to help the host/hostess. Ideas for classes:
Suggestions for pairing wine with the meals/courses
Which wines to pair with appetizers
Which stemware to use with which wine.
Add a Coupon:
Invite customers back for a free
tasting in the first quarter of 2008 or provide an additional one-time discount for a bonus
purchases.
Announce the Events for 2008:
Add a flyer to each sale that announces
the events for 2008 - consider sharing general information on classes that you
will be offering, events like walks through the vineyards in spring and wine
that is planned to be released in the coming months.
SIGNS to Take Action:
Signs can make a difference and we have seen
the actions of our visitors change by making a few changes.
We changed our signs that read "Wine Club"
to those which read "Ask about our Wine Club." This resulted in an immediate change.
People at the bar started taking action. The difference was tremendous. People
at the tasting bar started asking and we started explaining the club more often.
Our new club member registrations increased immediate.
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Maximizing 4th Quarter Direct Sales and
Raising your Visibility for FREE:
Sending out a quick note or
newsletter is one way to remind people that you are open for the Holidays.
An email does not have to be lengthy and could be a simple note that takes
10 minutes to write and send.
Additionally, consider planning a series of emails that provide your
customers with the benefits to come to your tasting room. Here are
a few topics that you may want consider:
- Out of Town Guests: Invite your newsletter and club members to your
winery for the Holidays as a way to entertain visiting family
members and friends.
- "Avoid the Mall": Remind your customers that purchasing wine as gifts is
an enjoyable experience and will help them avoid the crowded malls and packed parking lots.
- "Escape and Celebrate": Encourage your customers to take time for themselves and invite
them to bring a friend or two to escape from the hustle and bustle and to enjoy the wines and friends.
- Signed Bottles Purchased Early: Offer something special to customers who purchase early.
The special does not have to be a price reduction. It could be as simple as the wine maker signing bottles.
Goals and Preparing Staff for the Holidays:
As business owners and managers we understand
that we want to build relationships with our customers that keep them happy and
returning for more. By setting goals and sharing those with your support team
there is a better chance that you will meet and event exceed your expectations.
Goals to consider:
- Define the general atmosphere you want the staff to create for your visitors
- Set daily and weekly sales goals as well as goals for new club member registrations
- Track the progress and make sure to make adjustments as necessary.
- Don't forget to celebrate the success of reaching the goals.
Negotiate a lower rate for Processing Club Transactions:
Credit card companies automatically lump Wine Club
Transactions into the high-risk category of internet sales. If this has happened to you,
it is worth calling to make sure they recognize the club transactions as low risk
and not as shopping cart sales.
Club members are low-risk recurring billing customers and not high-risk shopping cart sales.
Most Wine Club members register for the club while they are in a tasting room with their
credit card in hand. This is a key point to stress to your credit card processor.
We continually have to educate the processors that Clubs Members are not one-time customers.
They are repeat customers who are loyal and have ongoing relationships with the winery.
Call your company today to make sure you are not being over charged.
2008 Wine Industry Events to Consider Attending:
There are a lot of events each year
that focus on the wine industry. Here are a few to consider that should provide a
crosscut of information from a wide variety of sources.
1. Wine Club Summit, Marin - Embassy Suites - San Rafael, CA January 22
2. Tasting Room Profitability, Marin, CA January 23 & 24
3. Advanced Tasting Room Strategies, Rohnert Park - www.wineprofits.com February 5 & 6
4. WAWGG Annual Meeting & Trade Show, Kennewick, Washington - www.wawgg.org Feb 6 & 7
5. Oregon Wine Industry Symposium, Eugene, Oregon http://www.oregonwine.org February 11 & 12
Active Club Forum is FREE for Everyone:
As we work with over 150 clubs across the country
we research and find new ideas that work and those which have failed. We share
success stories, new and different ideas for benefits, retention, support, and more.
We love to share that information with people who can benefit from the knowledge.
If you have questions or hot topics about your club, go to the forum and post
your questions. We will research the issues and provide answers.
www.activeclubforum.com It's FREE!
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