How to double your wine business profits?
The fine wine industry is in the midst of a sea-change driven by a shift in customer behaviour and expectations, technology and developing business models.
The independent wine market has lagged behind many other sectors that have successfully added or migrated to new operating models and harnessed the potential of digital technologies.
But things are changing, and 2020 has quickened the pace of that change within the world of fine wine distribution, merchanting and retailing.
The idiosyncrasies of our market, especially in respect of all the different types of inventory and the distinct business workflows that are needed for each inventory type, make the application of cross-industry business systems (often referred to as ERPs) difficult to customise to the needs of fine wine merchants, retailers and importers.
Cost has unquestionably been an issue. Wine is a classic long-tail market with thousands of small and medium sized operators, whereas only bigger players can afford to commit substantial up-front sums into software. Ours is a market where margin is closely monitored, and every percentage point matters.
Cross-industry software that has been bent into wine shape struggles to deliver a return on investment, or desired operational efficiencies. The reality is that more time than ever is spent by operational and logistics staff using adapted technology which makes it hard to grow without layering on additional costs and resources.
Many businesses have either done the math and backed off or have had a disappointing experience.
Cloud computing has made it an awful lot easier for technology to re-configure around evolving business models such as low inventory, or a more blended approach to what you can offer through e-commerce and other channels. Industry-specific technology now allows wine businesses of all sizes to take advantage of the many opportunities for improvement and growth.
In this free download we answer the question: how do you improve upon the typical net profit before tax percentage achieved by a fine wine business?
We walk through the many ways in which a wine business can grow the bottom line through initiatives supported by our business operating platform, the Wine Hub. The white paper download explores scenarios to make more money and deliver a rapid return on investment.
A Wine Hub implementation allows a firm to drive growth through new revenue opportunities as well as business efficiencies.
Part of the answer to growing the bottom line is how you develop your revenue streams, and use technology to facilitate the development of those streams efficiently. But just focusing on the top line will not of itself lead to an increased return on sales. The other part of the answer is how work processes or activities associated with each revenue stream can be made much easier to run.
