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Advice solicited - Printable Version

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- stevebody - 04-01-2005

Guys:

Thanks so much. A lot of what you suggested I had already adopted as policy but there were some gems. I'm definitely going to institute the daily tastings and two of my sales manager friends with local distribs have agreed to provide me with whatever I want for sampling. I'm NOT going to hoarde samples for my own personal use. (Not all of them...) I've always thought that those bottles could be better used for instore tastings. Esquin would frequently wind up with upwards of eighty bottles open on our breakroom table, just after the newsletter tasting, and no customers ever had any of it. I would occasionally sneak a bottle to someone I knew had an interest in a particular varietal or region but policy was that we'd take them home or they were poured out. Stupid.

I've never understood why MOST wine shops don't have music on. Around here, at least, that's the rule, with one or two exceptions. Even more puzzling is the almost universal shabiness of the shops. Esquin is an unadorned warehouse. Pete's Eastlake is a convenience mart and Pete's Eastside is a defunct supermarket. Linoleum, flourescent lights, old paint...Champion Cellars hasn't been cleaned or rearranged in 25 years. Pike & Western is heavy on concrete, cinderblocks and badly handmade racks, with borderline illegible signage. McCarthy and Schiering is clean and well-stocked but soulless and the salespeople have some, uh, 'tude issues. These are the cream of the NW crop. I'm definitely going to Olympia to check out Bucko's friend's shop there.

Most of all, I have NEVER gotten this business of every shop in the area stocking the same basic core of wines. My friend Hugh, at Winslow Wine Shop, was right across the street from the best grocery-store wine operation in this area and he INSISTED on going head-to-head with them on stock. He couldn't possibly compete on price, so he wound up being compared to them, unfavorably, by everybody who came in. One of my favorite Soaves is the Gini La Frosca, and you could grow old around here trying to find it on a shelf. It's in the distrib's catalog but nobody stocks it. Ditto for most Morgan wines, almost every freakin' Beaujolais besides DuBoeuf, anything from outside WA, OR, or CA in domestics, and almost everything from Spain except for a core of about fifteen wines. I LOVE scrounging around for those overlooked gems and creating a market for them. I'm going to take a little of the credit, locally, for promoting the Di Majo Norante Sangiovese to its current rank of best-selling red in Seattle outside of Yellow Tail. I'm also taking credit for Peter Lehmann Barossa Cab selling AT ALL around here because I WHIPPED on other wines shops to carry that stuff and sold over 700 cases, myself. I think small, independent wine shops shouldn't carry much of anything that can be had in supermarkets, anyway. You just can't compete.

On pricing, I'm totally in agreement with my retail wine guru, Gary Holman, who created thye wine program at the aforementioned Town & Country Market. His philosophy was that people will buy, first, on price and that hook allows you your best opportunity to sell them better - regluar priced - wines. He ran a minimum of 35 discounted specials every week and usually more than 50. He had 3200 labels in the cellar, so the regular markup wasa flat 30% for shelf stock and the backroom goodies were priced at current cost for replacement. He never refused a return and the order was that everybody leaves satisfied, no matter what. That wine department was either the third or fourth largest customer of most of the local distributors and stayed that way for about 11 years. We don't have to support but two people; me and Judye. My markup is 30% and loss leaders will typically be as low as I have to go to underprice everybody but Pete's and Esquin. Our closest local competetion will be Costco but, at least around here, Costco has a VERY limited selection, doesn't do tastings, and their prices are ALWAYS above Pete's and Esquin. I have to think that anyone but the most casual drinkers will prefer to shop an actual wine shop, pay less, and be able to get into a wine conversation in the bargain.

In WA, it's legal and possible to run a wine bar on-premises and we've been planning to do that but practicality will dictate. I don't want to get into the food business, again. I don't want visits from the health department and the required plumbing/refrigeration hoo-hah. That said, I'd do it, IF we find a space that offrers a nice space, preferably outside seating as well as inside. Right now, we're planning to do this in Woodinville, WA, which some of you may know as the home of the Columbia Winery and Chateau Sainte Michelle, as well as a dozen or so smaller wineries. It's getting ready to boom in wine trade businesses and, amazingly, there's NO wine shop in the town.

Thanks for all the input! If you think of anything else, please post it here or try my email, stevebody@go.com.


- Zinner - 04-12-2005

Good luck on your shop.

I'd agree with Foodie about the warmth and attitude. We had one shop fail in our town. I'd meet consumers who went to their tastings and ask them what they thought. All of them thought the shop was beautiful and stylish, but a bit cold.

Two shops in the same area that provide friendlier service are still going strong. If you can make your customers feel good about their purchases, you can succeed, I'd bet.

One shop here does a food thing that's quite a lot of fun. Perhaps three times a year, they'll have customer cook-offs. The customer brings in a special dish (planned ahead of time) with maybe a half dozen folks competing. The shop matches wines with the dishes and the customers taste and vote for their favorite. All the cooks get a bottle of wine for participating, but the winner gets something really nice, often a magnum. Competition is fierce.

Would you like me to send you one of my favorite wine stories? I am not the author, but wish I were and it's set in a wine shop in Washington state. I can send it as a Word document, but didn't want to fire off an email with attachment without warning in case you'd think it spam.


- stevebody - 04-12-2005

Zinner: Please do. I'd welcome any anecdotal input, at this point.

SEVERAL NOTES: First, thanks to all who responded, especially Foodie and Bucko. Judye and I went down to visit Pat Hub at Olympic Wine Merchant last Saturday and were very impressed with both the shop and him. He could not have been more cordial and helpful and his shop was exactly what I think of as a good, appealing neighborhood wine store. We picked up a lot of ideas and he urged us to keep in touch. Thanks, Bucko, for the advice and the newfound friends!

Foodie has been an absolutely invaluable resource for questions and suggestions and we've incorporated a lot of what he's offered. He's been incredibly generous with his time, especially given that he and I were calling each other names as recently as 18 months ago. My humblest thanks, pal.

A BLANKET OFFER: We have a million questions, as do all new-business aspirants, and we will need all the help we can get. With that in mind, I have to also say that simply squeezing people for information without compensation has always rubbed me wrong, so what Judye and I would like to do is to offer to trade out wine for good ideas. We'll have questions that will appear here. If you have time and are inclined to answer them, we'd like to offer your choice of a couple of scenarios:

1. If you're clear on the other side of the country, we'll be glad to ship you some bottles of your choosing out of what we get in sampling around the time of our opening. These would be free and we'll pay the postage. OR,
2. ...for a period of a year, we'll sell you whatever you want out of our stock at cost plus the postage, not to exceed four bottles a month. We can only do this for a limited number of people and only to participants on this forum who have experience in some aspect of the professiona wine trade: distribution, retail, restaurant, hospitality, wine criticism, wine education or anything else that earns a buck and pertains to wine. Whomever offers to do this will become a part of our advisory board and will buy at cost whenever they visit our shop, providing we don't crash and burn like the Hindenberg.

HERE'S THE FIRST QUESTION:

We're looking at two retail spaces in Woodinville, WA, northeast of Seattle about 15 miles. If you mapquest this, the close view will reveal the end of the Woodinville-Snohomish Road, which curves into 132nd Avenue NE. Site One is about 300' up the Wood-Sno Road from the 132nd curve, in the back of a large shopping center. It's about 2200 sq. ft., unpartitioned, with 12' ceilings and concrete floors. It sits about 100' from the post office and about 300' from the fire station. Signage is available on the opposite side of the mall, which fronts onto 175th St. NE, Woodinville's main drag. It's right next to a busy day-care center, is tree-shaded, and has large windows.

Site Two is just south of the interesction of the main street, 175th NE, and its intersection with NE 140th Avenue, about three blocks away from Site One. It's a former beauty salon space in a small strip mall anchored by Jose's Family Mexican Restaurant. It's long and narrow, (about 20x50; 1019 sq. ft.) and is bracketed by a Curves workout place and a manicurist's. It has 12' ceilings, nice linoleum floors, three partitioned rooms, and good signage space above the front awning, with floor to ceiling windows on the front end. The rooms can be partially or completely removed. It's visible from the street (140th) and is just behind the 7-11 that sits directly on Woodinville's main intersection at 175th and 140th. Both have good parking and Woodinville is only about ten square blocks, total, in the downtown area, so anyone familiar with the town should have no problem finding either, using a map or landmarks.

The rent on Site One is approx. $10 to $13 per square foot. The rent on Site Two is approx. $21 per square foot. Triple net on each runs in the $4-$6 range.

Two offers more visibility but more traffic problems. One offers more space and flexibility but has no major street frontage.

Which one sounds best to you?

Thanks in advance for any input and if you're interested in being a member of our advisory board, please let me know at stevebody@go.com.


- Innkeeper - 04-12-2005

I went back over the tread again, and have a couple of questions. I also don't know the ins and outs of Washington State liquor laws. Are you going to sell any other alky beverages besides wine? If so, I would go with larger space.

There are advantages to having other things available. First of all I would highly recommend having fortified wines. This is an issue here, requiring extra licensing. Another thing that goes with wine is Single Malt Scotch. My wine guy here laments the fact the state won't let him do it. Something that gets none wine folks into wine stores is beer. If you put beer coolers in the back, requiring folks to walks by attractive gondolas of wine can win over converts.


- wondersofwine - 04-12-2005

My inclination would be to go for the larger retail space. However, if it is not as visible from the street, you will definitely have to convey visibility some other way--advertising budget, fliers generously printed and distributed, lots of promotion of the grand opening, etc. If you open before Christmas emphasize holiday entertaining, gift giving, sparkling wines for New Year's, wines for that Christmas dinner (turkey, ham or whatever), tastings with mulled wine as an extra. If the initial impression from the grand opening is flattering, maybe word-of-mouth and repeat customers will create its own visibility.


- stevebody - 04-12-2005

We can sell beer here, with the same license we need for wine. Anything distilled, nada. State ABC stores only. I'd love to sell beer but I have to confess that, despite being a very egalitarian wine drinker, I'm a horrible and unrepentant beer snob. I would much rather give up beer altogether than ever drink a Coors, Bud, Schlitz, Miller, etc. We have a GREAT beer distrib here, Click Imports, that has amazing brews from all over but Judye isn't wild about stocking beer. She thinks it sends the wrong message. We have to hash this out but it hepled a lot this past weekend that Bucko's friend, Pat Hub, at Olympic Wine Merchant, had a beer cooler tucked away in the back corner. She's at least thinking about it, now.

Thanks for the ideas. I'm leaning toward the larger space, too.


- Kcwhippet - 04-13-2005

Steve,

You HAVE to put in a beer cooler, as well as a small amount of shelf space. You'd be surprised how many folks knowledgeable about wine are also into really good beers. Both of the last two shops I've been with have not sold smokes, nips or lottery tics, but they both have really good beers in stock. Of course, you have to stock a bit of Bud, Coors, Miller, etc., but think of all the other possibilities. Besides the availability of really wonderful domestic micros, particularly up where you are, there are also a host of extraordinary imports. Think the Belgian beers (and not just the lambics or abbeys), the wonderful Scandinavian porters (D. Carnegie, for instance), the huge selection of British empire brews (Tanner's Jack is one of our faves), the barrel aged brews, the list goes on and on - and should also include Pilsener Uquell, the original. The shop I'm at has over 300 brews (most of them are NOT in the Bud category) and the wine geeks can often spend as much time checking them out as they do over at the wine racks. Take a look at our web site - [url=http://www.warehousedwine.com]www.warehousedwine.com[/url] - to get an idea. Besides the coolers in the back in the photos, the whole right rear of the shop is also stocked with brews. BTW, the site needs a lot of work - I know.


- Zinner - 04-13-2005

I didn't like beer either until I visited England and Scotland and had the good stuff. Oh, and a beer festival on the waterfront in Portland further introduced me to microbrews. I drink a lot more wine, but now enjoy the occasional beer. It could be a nice addition to your store.

That said, a lot of the wine stores here don't sell beer (not taking into account the grocery wine departments). But the one that I know of that does sells a ton of it. The owner is really into beer himself though and carries lots of harder-to-get brewskies.

If you go for the larger space, why not try it? If you find that's not your audience, then you could phase it out later. Some of it depends on who your customers are. It could be a cash cow.

I'll get you off an email with the story. Sorry to delay, but am involved in the sale of a house right now and it's eating up my free time (but not much longer, I hope).


- Botafogo - 04-14-2005

" Judye isn't wild about stocking beer. She thinks it sends the wrong message."

Not selling beer sends a WORSE message as in "We don't serve your kind here and that stuff is not sophisticated like our precious wine."

Steve, the oldest discovered example of written language, the Codes of Hamurabbi, containg a recipe for an Oatmeal Stout and penalties for the sale of adulterated beer that include DEATH. Beer is a wonderful thing and every winemaking country in the world has some equivalent of "It takes a lot of good beer to make great wine" (as in the wine makers and vineyard workers drink it). You don't need any of the industrial swill but you need lots of Belgian, Scottish and German goodies.

Re Music: we have a 300 CD changer in our store loaded with great jazz, blues, African and especially Brasilian tunes and it is a major reason people browse longer.

As to getting addresses, if you write a truly literate and passionate newsletter people will not only want to get it, they will forward it to their friends. The Pulitzer Prize winning media critic of the LA Times did a full page article about ours (and Kermit Lynch), saying he sat by his fax machine waiting for it and that it was a fun read even if you weren't that into wine. Result: we sent out five hundred in three days. Prices and scores without cultural info and serving suggestions are just solicitations to buy stuff. Something like this gets people's attention:

What....happened...to him...Bones? He died of Sulfite Deprivation Jim...
So you don't want to ingest any Sulfites, eh, Mr. Natural? That stoner manning the counter at the Co-Op told you they were “toxins”, right? Well here's some sound scientific advice from someone who not only attended and passed High School Chemistry but went on to earn a Master of Science in Public Health Microbiology, WINE EXPO-ista Linda Olsen Weber, R.E.H.S., M.S.:

“Are you CRAZY?!?!? We need these chemicals. Your body contains about 6 ounces of sulfur, mostly in amino acids, which combine to make proteins, which in turn combine to make all sorts of body parts- - -Skin, hair, nails and connective tissues. Sulfur is also a part of insulin, heparin and polysaccharides in the matrices of your cartilage, bones and teeth. You NEED to consume sulfur to replenish the supply to your body. Sources include meat, legumes, cabbage, onions, broccoli, cauliflower, garlic and - - - you guessed it - - - wine and beer! What do you smell when you chop garlic? Diallyl disulfide. Chives, leeks and onions? Other disulfides. And when you cook cabbage? Hydrogen sulfide, methyl sulfide and trisulfides. And when (pardon my French) you fart? You guessed it - - more sulfur byproducts! If you're still bothered by the idea of sulfur products in your wine (you’re on your own with garlic), aerate the wine - - - pour it into another container before serving. This will allow excess sulfur dioxide to escape, but you may lose some good aromas as well. I think I’ll pour mine directly from the bottle to my glass, Bon appetit!”

Thank you, Linda! Now, for those of you attributing all manner of symptoms such as hives, sinus, migraine and flushing of the skin to sulfites, these are in fact HISTAMINE reactions and are caused by pigments, tannins and the effect of fermenting and aging in wooden barrels. Give us a call and we will fax or e-mail you a full-page info sheet on what causes these reactions and commonsense ways to avoid them (most of which do not involve giving up drinking wine!). Cheers!


Good Luck, Roberto

[This message has been edited by Botafogo (edited 04-14-2005).]


- Innkeeper - 04-14-2005

Roberto,

Haven't seen one of your newsletters in a looooooooooog time.

Carl


- winoweenie - 04-14-2005

Buy sumpin' sucker. WW


- Botafogo - 04-14-2005

Karl, did you get one in January? And are you not getting the e-mails?


- Innkeeper - 04-14-2005

I'm getting your e-mails, but did not get the January newsletter. Thanks.


- californiagirl - 04-14-2005

Roberto- I would love to be on your shop's e-mail list! Please add me [img]http://www.wines.com/ubb2/smile.gif[/img]

grtwiteshk@earthlink.net

Thanks