Tasting Room Marketing & Operations
Linda & Marvin Seppanen Garvin Heights Vineyards LLC www.ghvwine.com Welcome to Garvin Heights Vineyards
February 16, 2008 Tasting Room Marketing & Operations 2 Welcome to Garvin Heights Vineyards
February 16, 2008 Tasting Room Marketing & Operations 3 Tasting Room
February 16, 2008 Tasting Room Marketing & Operations 4 Presentation Outline
• Tasting Room Purpose • Mission Statement • MN Farm Winery License • Tasting Room Design & Layout • Services ‐ Events • Equipment • Non‐wine inventory • Pricing • Staffing • What we have learned
February 16, 2008 Tasting Room Marketing & Operations 5 Tasting Room Purpose
• Give customer an opportunity to sample & purchase your wines • Create a memory – Tell the story behind your wine & label – Educate – Entertain • Remember: – customers can obtain similar wines and products through other venues
February 16, 2008 Tasting Room Marketing & Operations 6 Tasting Room = Retailing
• Characteristics needed for the retailer – Gift of gab – Comfortable in diverse & changing conditions – Ability to plan ahead – Multitasking capability – Detail focused – Perseverance – Desire to make people happy –to satisfy your customers
February 16, 2008 Tasting Room Marketing & Operations 7 What does the visitor want/expect in a winery tasting room? • First impression • Orderly –Organized • A place to bring family/friends • A place to relax • A place to gather with friends • Educational experience • Can buy wine on Sunday • Not a liquor store • Not a bar
February 16, 2008 Tasting Room Marketing & Operations 8 Marketing: connecting your wine & goods with potential customers • Grand Opening • Website: a “must‐have” www.ghvwine.com • Advertising: radio –TV – billboards – newspapers – internet –newsletters –flyers • Local visitor’s center • Other tourist related sites in community • Wine trails –regional and state tourism groups • Free –local radio and TV programming • Speaking at local events • Wine/Case Club: people pay you to be reminded about you
February 16, 2008 Tasting Room Marketing & Operations 9 Tasting Room Mission Statement
• Definition of your products & services • Customers to be served • Geographic area(s) to be covered • How to create customer satisfaction – physical assets – financial assets – human resources • How to compete in chosen market
February 16, 2008 Tasting Room Marketing & Operations 10 GHV Mission Statement:
• To serve as a center for agri‐tourism in the Mississippi River Valley region of southeast Minnesota • To sell quality wines using locally grown cold climate grapes • To introduce our customers to the joys of wine as a part of a healthy diet and lifestyle • To teach our customers how grapes are made into wine • To introduce people to the process of grape growing for personal satisfaction and for potential sources of local supply • To provide a facility for small gathering and to offer a range of locally produced art and a venue for local musicians • To support the grape growing and wine industry of the Upper Mississippi River Valley
February 16, 2008 Tasting Room Marketing & Operations 11 MN Farm Winery License
• Permit the sale of: – glassware – wine literature and accessories – cheese and cheese spreads – other wine‐related food items, and – dispensing of free samples of the wines offered for sale • Sales at on‐sale and off‐sale may be made on Sundays between 12:00 noon and 12:00 midnight • Other local permits not required • A restaurant license can be obtained
February 16, 2008 Tasting Room Marketing & Operations 12 How retailers compete
• Service • Experience (memories) • Price/value • Product • Access Must focus on being better than any other retailer in one key area.
February 16, 2008 Tasting Room Marketing & Operations 13 Tasting Room Operations
• Hours: Open hours ~ Business hours • Credit policies: Credit cards ~ Personal checks • Customer Service Policies: Greet ~ Returns/ exchanges ~ Gift wrap • Housekeeping: cleanliness & orderliness inside & outside • Security Policies: Locks ~ Cash on hand ~ Bells on doors • Bookkeeping System: Daily reconcile ~ Tracking wine, taxes, goods • Relations with neighboring retailers: Know them
February 16, 2008 Tasting Room Marketing & Operations 14 GHV Tasting Room & event center
• Sell a Million dollar view • Large deck with vineyard views • A showplace –space for art display & sales • Space for outdoor events • Handicap Assessable • Rural setting for agri‐tourism • Reasonable parking • Commercial Building
February 14, 2008 Tasting Room Marketing & Operations 15 Tasting Room Design
• Exterior: Impression from road/street ~ Parking lot • Signage: to attract customers ~ Remember zoning • Show Window: foot traffic • Entrance: inviting ~ clear ~ accessible • Interior: attractive ~ a place to spend time! – Flooring – ceilings – walls –use of color
February 16, 2008 Tasting Room Marketing & Operations 16 Tasting Room Layout
• Show all merchandise to all customers – Clearly show location of wine tasting • Give choice locations to most profitable items • Discourage shoplifting • Experiment to stay exciting • Locate related items next to each other • Avoid overcrowded displays
February 16, 2008 Tasting Room Marketing & Operations 17 GHV Tasting Room Layout
February 16, 2008 Tasting Room Marketing & Operations 18 GHV Tasting Room Layout
February 16, 2008 Tasting Room Marketing & Operations 19 Enjoying the views from winery deck
February 16, 2008 Tasting Room Marketing & Operations 20 Tasting Area
February 16, 2008 Tasting Room Marketing & Operations 21 Serving Area
February 16, 2008 Tasting Room Marketing & Operations 22 Serving Area
February 16, 2008 Tasting Room Marketing & Operations 23 Serving Area
February 16, 2008 Tasting Room Marketing & Operations 24 Wine Tasting Area Needs
• Counter/ table • Dump bucket • Glassware • Pitcher of water • Crackers • Product information: – up to date ~ easily readable ~ prices marked • Background music – sells more with music • NO scented candles or popcorn
February 16, 2008 Tasting Room Marketing & Operations 25 Tours of Winery and Vineyard
• Education – about growing grapes – about cold‐climate grapes & their development – about wine making – about wines & wine tasting • Agri‐tourism is a growing trend • Customers learn to trust you & your product • Customers meet others of similar interests • End every tour with marketing information
February 16, 2008 Tasting Room Marketing & Operations 26 Value of Tastings and Tours
• Sharing your unique story – Unique selling proposition – No one else has your story – Make sure staff tells your unique story • The Small farm winery advantage – Can talk with owner(s)/ winemaker(s)
February 16, 2008 Tasting Room Marketing & Operations 27 Services ‐ Events
• Rentals of building & grounds – Regional pricing • Educational seminars – Topics ~ pricing ~ marketing • Private group tastings • Wine tours and tour buses • Festivals/ events • Shipping – Only to limited number of states – Check the latest rules first
February 16, 2008 Tasting Room Marketing & Operations 28 GHV Event Rentals
• Corporate Meetings – Wireless internet – Small kitchen for snacks • Family/wedding events – Smaller groups inside and/or deck – Larger groups under trees, in vineyards, or tent – Requires an outside caterer – Lower rental rates outside of normal hours • Support – Small Catering Kitchen – Handicap accessible restroom
February 16, 2008 Tasting Room Marketing & Operations 29 Catering Kitchen
February 16, 2008 Tasting Room Marketing & Operations 30 Catering Kitchen
February 16, 2008 Tasting Room Marketing & Operations 31 Catering Kitchen
February 16, 2008 Tasting Room Marketing & Operations 32 Restroom
February 16, 2008 Tasting Room Marketing & Operations 33 Restroom
February 16, 2008 Tasting Room Marketing & Operations 34 Required Equipment
• Point of sale: computer ‐ software– printer – monitor ‐ credit card scanner ‐ cash drawer ‐ barcode reader • Display equipment: shelves –tables –signs • Customer seating • Bags/ Boxes • Office Supplies • Back‐room equipment: brooms –trash cans – toilet paper –towels – cleaning supplies
February 16, 2008 Tasting Room Marketing & Operations 35 Computer Equipment & Software
• Dell notebook and blue tooth wireless • HP Laser Printer • LX 400 Label Printer with software • Quickbooks POS Hardware Software – Scanner – Receipt printer –Bar Code reader – Integrated credit card processing via internet
February 14, 2008 Tasting Room Marketing & Operations 36 Computer Equipment & Software
February 14, 2008 Tasting Room Marketing & Operations 37 Display Carts
February 16, 2008 Tasting Room Marketing & Operations 38 Display Carts
February 16, 2008 Tasting Room Marketing & Operations 39 Information Corner
• Video developed by local cable company
February 16, 2008 Tasting Room Marketing & Operations 40 Child Play Area
February 16, 2008 Tasting Room Marketing & Operations 41 Inventory other than wine
• Wine serving related: glassware – openers ‐ coolers – stoppers ‐ carriers • Logo‐branded items –glassware ‐ apparel • Foods • Jewelry • Collectibles • Functional kitchen/ household goods • Artists’ works • Anything you think will sell & you like • Statement of the quality & philosophy you represent • Devote 10 – 15% of space to non‐wine items
February 16, 2008 Tasting Room Marketing & Operations 42 Building Inventory
• Finding products & suppliers wholesale – EPIC – Oenophilia – Wine Enthusiast – Minneapolis Mart • Ratio for normal demand periods: 3 to 1 – depends on how important not running out is to you • Cost for each initial order/ reorders • Consignment
February 16, 2008 Tasting Room Marketing & Operations 43 Pricing
• Your philosophy: – to be above the market – Competitive – below the market • Pricing for profit is vital for your business. – What prices are shoppers willing to pay for the wine and merchandise? – Where do you want to be in comparison with your competitors’ pricing? – What is the suggested price proposed by the supplier? – What are the qualities that influence a shopper’s perception of quality and value?
February 16, 2008 Tasting Room Marketing & Operations 44 Pricing strategies
• Competitive pricing: meeting the going price for similar products/ services in local market • Market‐value pricing: for unique products or services where few or no competing products on the market; can take higher mark‐ups • Cost pricing – calculate all direct & indirect expenses plus profit • Easiest: wholesale cost doubled • Three zone price lines: – Prestige – Popular – Competitive
February 16, 2008 Tasting Room Marketing & Operations 45 Charging for tastings
• Part of marketing plan & philosophy • Charging a tasting fee – an income source – extra time –work ‐ bookkeeping • Often $3‐5 tasting fee – With or without glass as part of fee – Return fee with purchase of bottle of wine • Perceived value: – If you get something for free, you don’t necessarily value it as much as something you have to pay for.
February 16, 2008 Tasting Room Marketing & Operations 46 Human Resources ‐ Staffing
• Assess your needs • Family – friends • Paid or volunteer • Balance –can’t burn through your money • Training –expectation • Wage or bonus system • Follow fair/legal labor practices – Worker Compensation Insurance – SS & Medicare Withholder
February 16, 2008 Tasting Room Marketing & Operations 47 Staffing –you and/or others
• Written & verbal instructions/ training • Wines with foods • Social aspect of tastings • Tours of winery • Tourism information for area • Help customers make choices • Where to purchase your wines outside winery • Wine Club, e‐mail, website, special events • Never criticize another winery, restaurant, or establishment
February 16, 2008 Tasting Room Marketing & Operations 48 GHV Initial Startup ‐ June 2007
• Soft Openings – Professional Meeting – Neighborhood – Church Member – Dedication • Official Opening –Mid‐Summers Eve – Bonfire rained out – Cash box –wine only ‐ even dollar pricing • Limited wine selection – Bottled and labeled to keep up with sales
February 16, 2008 Tasting Room Marketing & Operations 49 Artist Event – August 2007
• Computer based Point of Sale – Quickbooks Hardware & Software – Bar code scanner, receipt printer, cash drawer • 3 artists plus harpist – First newspaper ad – Artists handled own sales – Art on display thru the month • First tour bus – Rainy day – Line up for restroom – Limited sales
February 16, 2008 Tasting Room Marketing & Operations 50 Artist Event
February 16, 2008 Tasting Room Marketing & Operations 51 Closed after Labor day
• Sold out of most grape wine • Busy with harvest • Opened by appointment • Schedule groups • Other jobs
February 16, 2008 Tasting Room Marketing & Operations 52 GHV Open from Thanksgiving to Christmas • Started taking credit cards – Quickbooks Merchant Services via Internet • Added merchandise – Epic & Wine Enthusiast produced – Custom shirts – Locally made baskets – Shipping & gift boxes • Christmas decorations • Radio advertising – Shopper Show discounts – New source of customers
February 16, 2008 Tasting Room Marketing & Operations 53 GHV New Marketing Efforts
• Professional quality brochure – visitors center • Minnesota Grown
• Twin Cities Food & Wine Experience: 23‐ 24 February
• Local hotel room ad (Holiday Inn) • Bluff County Studio Art tour ad: 25‐27 April
February 16, 2008 Tasting Room Marketing & Operations 54 St. Urho’s Day March 16
• Our blends of cold climate grape varieties carry the St. Urho label named for the patron saint of the Finish vineyard industry. • Legend tells us that as a young man St. Urho drove away the grasshoppers from Finland’s wild grape vineyards using the incantation: – “Heinäsirkka, heinäsirkka, mene täältä hiiteen!” – “Grasshopper, grasshopper, go from hence to heck!” • Urho is pronounced like “Errrrh‐hoe” with a long trill of the R to represent his strength. • His feast is celebrated by wearing the colors Royal Purple and Nile Green. • http://www.sainturho.com/index.htm
February 16, 2008 Tasting Room Marketing & Operations 55 What we have learned
• Retail is a lot of work! – Selecting & displaying merchandise – Daily cash recording and balancing – Multiple sales tax rates – Credit cards are expensive but necessary • Fun to talk with people & learn about them • Being open weekends & by appointment – A lifestyle change – Bad weather has a great impact – Sometimes a lot of time for a minimum sale • Creating events for families • How does a winery advertise? – Web ‐ Newspaper –Radio – Brochure – Freebies – Give‐a‐ways
February 16, 2008 Tasting Room Marketing & Operations 56 Final Rule
• Do what works for you. • Your winery is unique. • If it doesn’t work, do something else.
February 16, 2008 Tasting Room Marketing & Operations 57 GARVIN HEIGHTS i|ÇxçtÜwá • Linda & Marvin Seppanen • 2255 Garvin Heights Road • Winona, MN 55987
• www.ghvwine.com • [email protected]
• Wine Tasting –Vineyard & Winery Tours • Open weekend afternoons April ‐ Christmas
February 16, 2008 Tasting Room Marketing & Operations 58