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