SPLASH DECANT 05/26/19

National Pricing Purgatory

Hello and welcome to National Pricing Purgatory.
A word to the price-sensitive retailer – the below ain’t pretty…but there is an upside, I promise. Within this oversized problem is a kernel of clarity.

Will the pricing of a wine state to state get more varied and complex before it gets better? Absolutely on all counts — and mostly because there is a large amount of confusion.

But I need to clear up a few things first.

The Pricing Email

I am getting emails about pricing in NY and also in other states (this is not new) and they are becoming more and more frequent (very new). They go a little like this:

Dear Looper,
We are very concerned about the Black Friday sale of the “insert Brand here” at this competing retailer in “insert state here.” The price they are selling is well below our price. Please let us know what you are going to do about this before we re-order.
Thanks,
your friendly Retailer

Most recently this email came from a prominent wine retailer on the national stage and was prompted from a forwarded email from a customer. First, let me say this: I get it. This is beyond annoying. Johnny Two-Click that works in Tech on the West Coast trolling wine-searcher for the best pricing is a tough one. He has been buying some wine from you recently and he emailed you angry and annoyed – he may have even threatened to take his biz elsewhere. I completely understand that you feel compelled to take action.

Further, I can’t think of a worse thing than skimming over the pricing in Wine-Searcher all day. That would be up there as my worst wine nightmare.

Fact: Unless a retailer is taking the full quantity of a particular wine for the whole country, there will with rare exception always be a lower price someplace nationally. And, if you add in the random little Direct To Consumer email list operations to this, the pricing situation gets even dicier.

Wine-Searcher

Wine-Searcher is a wonderful tool, but imperfect to say the least.
Human error, virtual inventory* and one-day sales really put a spotlight on the issues of wine-searcher. I take wine-searcher seriously at times, but it is notoriously misleading.

The ‘click it to wine it’ game in wine is a toughie. The real price hunters don’t care about you. They could give a shit about the source or character of the retailer.

Are you offering something besides wine? Is this all just a widget? If so, prepare to race to the bottom, or constantly search for exclusives. which will also end at the worst times. And it won’t be pretty. Price always wins.
Now, there are some shady characters on ‘searcher who use it as if it were a game. They bottom out the price to get phone calls and emails. To them, I say: good luck. These wack jobs will have moments, but I would never bet on them.

That DTC Bullshizz

Is the Direct to consumer email list worth worrying about? As of today, I have never received a viable complaint about a Direct To Consumer email blast.

These lists are blasted out and often claim to have the wine at the best price in the nation, but

#1: they rarely have the wine in any quantity

#2: rarely offer consistently good service to the people buying and

#3. the source of the wine is questionable…

Further, when they are actually a viable DTC, the prices never hit Wine-Searcher.
Most recently, a very important retailer emailed me about a DTC offer and I checked into the wines they were referencing. The total inventory on this Direct to Consumer list offer was one bottle on one SKU and 3 bottles on the other. That was the actual total. I am not kidding.
Considering I was offering a quantity to the sensitive retailer of the same wine that dwarfed those numbers, I must ask: is this really worth worrying about?

The Distributor Matters

In nearly every case when I am contacted regarding a price in another state, the importer/distributor I work for doesn’t distribute the producer’s wine in that state.
Does the distributor matter? Big time. Maybe the California (for instance) distributor needs cash or is going out of business. Or maybe they just suck and sell to anyone. Is it possible they sold the product to a terrible retailer that is closing who had to close the wine out at a major discount? The bottom out of pricing may even be a local competition move.

As you can see, the possibilities are more numerous than you can imagine.

If you are a retailer having problems with a price on searcher that is consistently driving a large number of your loyal customers mad, then you may have to do the noble thing and cut the wine. Get rid of it. If it is that much of a headache, why waste the time?

“ Johnny Two-Click that works in Tech on the West Coast trolling wine-searcher for the best pricing is a tough one.

THE UPSIDE

I know of a gigantic, very successful store that sells not just one but many wines 10%+ higher than everyone else on wine-searcher. You read that right…HIGHER.
We are talking one of the big players that everyone would know – AND the sales volumes of the wines in question are staggering.

How are they doing it? Customer loyalty and attention retention.

They invest big in knowing and connecting with their audience. They market clearly. They know that people like this buy wines from us. This is the opportunity. If you truly know your customers, you can keep them rolling.

I love retail. I love the pace of it, the people. A buzzy, energized retailer is in many ways the inverse of the high-charged, raucous restaurant. They are different genres and I find the dynamic of selling to both endlessly fascinating.

But I can say this with confidence: if price is what you are selling, you are building limited to zero loyalty from your customers. The customers you are chasing think of you as a commodity trader. And with where the world of business is going, they will leave you tomorrow if they find something better.

THE REORDER 05/17/19

Find the Pillars

These are my pillars of sales in the NYC beverage market. The concepts I keep going back to.
I most definitely don’t think I have this figured out – my views evolve every day.
But here is what comes to mind right now. I hope it helps.

Philosophy

Decide what you are trying to do – And it can’t be moving boxes. Get to the core so you have a reason and the belief to back it up. This is invaluable when the work we do lacks the luxury of constant products or customers. We work in the top market in the world in NYC and it is as volatile as it gets.
I know it sounds woo woo and/or eastern, but I promise you that having a philosophy holds the keys to the castle.

Cadence

You must have a cadence with your customers. Now – there will be some sales manager saying you have to see everyone every month, etc. If you can – lucky you. In my experience, it just isn’t how the world works.

Figure out another way.

Market

Study the market you work in. Know the props, players, trends, young and old. You will never know it all and you will be surprised often. BUT, You will gain in perspective – and that is the only way to perform well over a sustained period of time.

“ The truth is that it isn't the wine in the bag that sells, it is the dialogue that sells.

Calm and Cool

I have been meditating for years, I highly recommend it. And one of my best friends (also a legendary sales guy) always took weekends and a few weeks in August to get some headspace and clarity.
Work in some serious breaks for yourself.
In concert with breaks, it is vital that you create some boundaries with your work – or you will ultimately have to fight to save your sanity.

Do you answer every email as it comes in? Do you take time for yourself? If you don’t create some boundaries, you will be drinking too many negronis to forget how burnt out you are…

Systems and the need to let go

I have tried everything from Salesforce to Mailchimp. I am constantly tinkering (sometimes to my own detriment) with what I utilize to communicate well and keep track of details with. I look for systems that will work for me and my own style.

Find what works for you.

Even still, I still miss on a ton of shit. Details, offers, timing, customers…you name it.
To put it plainly: I still fuck up. A LOT. And I think I have a decent mind and fairly sharp intuition to go with it. But I still swing and miss, or forget to swing at all.
BOTTOM LINE: LEARN TO LET IT GO. I took a long time to learn this lesson. You don’t have to do it the hard way as I did.

By the way: don’t let it go in a jerky or distant way as if nothing matters – but you have to move on from the things you miss on or they will pull you down and hold you back.

The real game

It takes no talent to sell the wine that everyone wants. Sometimes you can’t give them as much or you have to say no, but basically a robot could do the whole thing.
The next level shit is dialogue. The conversation you are having.
The truth is that it isn’t the wine in the bag that sells, it is the dialogue that sells.
Most people in this market are very confused about this concept (I admit there is some nuance to it).
Ultimately, this business is the people business and not the wine business.
At least until someone figures out how to put everything we do on a spreadsheet…*

*I was asked by a well-known design thinker and AI specialist if I could put everything I do on a spreadsheet. I have tried: IMPOSSIBLE.
He said to me: AI has no shot and no robot will replace you.

FIVE QUESTIONS 05/10/19

Five Questions with Chelsea Carrier, Bev, Director @ o ya, Covina + Rooftop @ the Park South Hotel

Chelsea Carrier (@chelseaecarrier) is the superstar that runs the beverage programs at o ya, Covina, and the Roof Top at the Park South Hotel.

Chelsea Carrier is originally from Houston, Texas. She started her career in hospitality working for restaurants such as Zahav and Lacroix in the Rittenhouse. Her love of wine came from her time working at Eleven Madison Park and NoMad NYC.

Five Questions

Which producer or area do you believe in that most people in the industry disagree with you on?

I think that the area of wine that most people in the industry disagree with me on is Italian white wine. Obviously, there are iconic producers that my peers support, but overall, I think that Italian white wines are overshadowed by the reds. I’m a firm believer that these wines can stand up to most luxury white wines from around the world.
My favorite Italian white wines come from more native or unknown grapes such as Greco di Tufo, Fiano, Falaghina, Friulano, and Carricante. Given the grapes, these wine are typically from lesser known appellations, which allows me to “nerd out” with my guests. Producers such as Marisa Cuomo, Quintodecimo, Benanti, and i Clivi are just a few that have elevated the image of these grapes. Personally, I love to decant these wines, so they are ready to be crushed as quickly as possible.

What are the components of an incredible omakase experience with wine?

The main component of an incredible omakase experience with wine is to think outside of the box. I would definitely not turn down drinking old Riesling and any Champagne with Japanese food, but in my opinion, it is not my favorite. From working with Japanese cuisine, I have realized that the structure of the food is different than any other. Acid, bitter, and body truly affect wine in an interesting way.
From this conclusion, I have fallen in love with white Rhône varieties with an omakase. The moderated acid, sense of minerality, and the body express themselves similarly to sake. Sake is the classic pairing. Finding wines that can be exchanged for sake is a wonderful challenge.

What are the challenges of running a multi-concept hotel wine program and how do you put your team in a position to succeed?

Stepping into the role of running a multi-concept hotel beverage program was challenging to say the least. The organization of inventory alone could be a full-time job, and my learning curve was steep. The challenges that a single-concept program faces are the same as a multi-concept. The struggle with storage, organization, education, implementation, service, and development of employees is just multiplied by the number of restaurants that are overseen.
The way that I try to face these challenges is by always thinking of what is best for my team. If my team is happy, fulfilled, and supported, it will reflect onto our guests. This being said, my first initiative was to consistently hold week education classes, bi-weekly R&D for cocktail development, bi-annual beverage goal setting, and creating a spreadsheet for beverage employee development. The more that I included the team, the more they wanted to help with organization, service improvements, and implementation. They feel attached to the programs, which is wildly rewarding to me.

Which trend or trends do you wish would go away?

The trend that I wish would go away would be the pretentious Sommelier. The original reason for the Sommelier was not only to be knowledgeable about wine, but to heighten the experience of the guest. I feel as though the old school idea was lost for a period of time with the glitz and glamour of the ‘Sommelier.’ I think that there are many emerging Sommeliers (ex: Jonathan Lopez of the Milling Room, Jhonel Faelnar of Atomix, Sarah Plath of NoMad, and Luke Boland of CrownShy) that are trying to shake this idea, but do think that we have some way to go.

“ ...I have fallen in love with white Rhône varieties with an omakase. The moderated acid, sense of minerality, and the body express themselves similarly to sake.

What is your philosophy on educating and motivating a large staff?

Being the daughter of a teacher, education has always been near to my heart. Also, it has always been tied directly to my motivation at work. This is why Cushman Concepts immediately felt like home when I found that their motto is ‘Forever the Student’. I try to encourage this motto through my philosophy on educating a large staff.
Essentially, my philosophy boils down to inclusion. I cannot teach at every line-up, education class, or every staff member with a team of over 50 dining room employees in 3 restaurants. Also, to my dismay, I am not an expert on every beverage topic, and not everyone learns from my teaching style. I need help from the beverage team. I ask that every member of the beverage team hosts one of our weekly education class or daily pre-shift. Due to the vast and varied knowledge of the team, we get to deep dive into every aspect of beverage (i.e. Sake, Coffee, Tea, Wine, Cocktails, Spirits, Beer, and Non-Alcoholic).
This inclusion of knowledge encourages varying teaching-styles as well. People learn in different ways. The higher quantity of people that teach, the wider net we cast. This education inclusion is the easiest way to invest in an employee. It will encourage their motivation and attachment to the guest’s experience, the restaurant’s success, and the beverage program’s elevation.

You recently passed the Advanced level court of Master Sommelier exam – if you had to do it again, what would you change in your full process (study through exam)?

This is an insightful question because I have deeply contemplated this idea as I prepare for my Master’s track. It is a challenging topic for me because I was successful in my first attempt at the exam. I think to myself, ‘Must have done something right to succeed on the first try’, but the other thought that I have is, ‘Was my journey enjoyable or was it too in-balancing to my work/life/study balance?’.
The conclusion that I have made is that I wouldn’t change a thing. I will study, taste, and practice in the same methods during my Master’s journey. The one idea that I have decided to focus more heavily is the balance of life. I want to enjoy this last step, and be proud of how I passed. So, I have decided to take my time, and accept that this journey will take many years.

Note*: All answers are edited for spelling, punctuation and posted without cuts.