It’s an urban or internet myth that distilleries can’t have or operate a club channel or club program due to shipping regulations. While shipping may not be an option for distilleries, “pick-up” clubs or the “will call” format certainly abounds. Take a peek into the wine world and you will find that the reality is that wineries who have club(s) usually carry an 80-90% pick up rate as opposed to club members having their club wines shipped.
In fact, the pick-up parties allow the winery/distillery to host a little party or elevated personalized guest experience around picking up that “installment”; offering a bite or two of snacks, a small sampling of “out of barrel” or “tank” preview tasting, a special offering that day (to up sell of course), a little education about the production process, and even a rubbing-the-elbows-with-the-owners time as well, which ultimately makes your members feel appreciated, extra special, and keeps them loyal customers longer.
How does having a club with all those special perks translate into improving your bottom line? Why would you want to bother with this extra effort? In your consideration about why to have a club, think about applying the 80/20 rule in your favor! Most business owners understand that 20% of customers will purchase 80% of their product, so role out the VIP red carpet and show these fans and loyal customers a great time! With the club format, you plan when to introduce new products such as monthly, quarterly, bi-annually, etc. With a club that means creating recurring revenues that bring in expected income to boost your ROI throughout the year!
Certainly, there are more reasons to have a club sales channel as a distillery. Just ask Spirit Works Distillery in Sebastopol, California. Spirit Works Distillery’s pick-up club accomplishes the revenue boost, develops increases in their local and regional customer base, and keeps customers coming back for more!
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- Posted by activ8commerce
- On November 21, 2019
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