What distilleries and other craft businesses should learn from wine clubs. Part 2.
Maybe Part 1 of this blog picked your interest in clubs and how they could work for your distillery or other craft business. A lot can go into creating a meaningful club with the right membership benefits, you can also start by keeping it simple.
5 ways clubs support the business side of your craft
- As a Direct-to-Consumer sales channel, club sales have a higher profit margin. DTC is more profitable than wholesale. But it adds up in other ways: selling to a club member in the tasting room is less work that often results in larger purchases. Club releases require relatively less labor and supplies. Both of which will be procured at a greater economy of scale as the club grows.
- You can reap the benefits of wholesale volumes with DTC profit margins.The DTC channel is crucial to craft businesses, but being able to apply its benefits by creating a volume DTC business is life-changing.
- Being able to predict the time and volume of this income stream provides a precious sense of security to an independent business. Without a club, DTC sales can be fickle. The tasting room might be slow at times, and the online sales non-existent. A club means regular releases, monthly, or twice or four times a year. With each release, a significant revenue fuels the business and can be counted on.
- A release is an opportunity to move a great product and give it the exposure it deserves. You may stand behind your products and be proud to share them with the world. However, because of pricing or lack of exposure, inventory sometimes moves slowly. Aging or new, inventory is expensive. Being able to move it when needed is a considerable benefit. Club releases do that.
- Even with thousands of members, credit card holders not present, or shipping with a third party and compliance, a club release, with the proper solution and proper planning, can be the push of a few buttons. Club technology has evolved considerably over the past 20 years. In today’s world, club communications and releases can be in great parts, automated, error-proof, headache-proof, and managed by a single person within minutes, an hour, or a few hours depending on the size and complexity of the club.
Clubs are not only the most glamorous sales channel in a glamorous business but also one of the smartest and most efficient ways to support it. Get your information from the source. Book your no-obligation demo today.
Here’s something else worth mentioning. Allocations for sought-out bottles, futures, or limited releases are also trending and a significant business model to support revenues. A powerful solution like Activ8 Commerce will open these doors for you.
- Posted by activ8commerce
- On March 3, 2023
- 0 Comment