Retailers Must Be Hurting
Just got an email from one of the “fancier” wine e-tailers out there, Vinfolio, offering an extension to their 1-cent ground shipping promotion for case orders, as well as 1-cent second day air for orders of $1500 or more — indefinitely!
While it’s tough to feel sorry for a company getting lots of $1500 orders, imagine a customer placing a $1500 order for wine that averages $30 a bottle. That’s nearly five cases of wine, shipped second day air at a cost of $60+/case to Vinfolio. They’ll be eating the bulk of their margin on that one, though they’re keeping the cash flowing, which I suppose is the point. If somebody orders two expensive bottles of Bordeaux, well, they’ll be pleased with the policy in that instance. Personally, I’ve found that for every order I get like the former, I’ll get one of the latter. It all balances out.
To add to this, the company is price-matching. I don’t know, but as a retailer myself, price matching when one is up against crazy New Jersey, lower-than-Cali-Wholesale pricing, is a risky prospect.
These are interesting times for retailers! I’ll have to come up with some cash-flow inducing offers soon myself. It’s definitely slow, and while that’s to be expected this time of year, it still requires some greasing of the wheels.
Curious to hear your thoughts. What would make you buy a case of wine right now, given the economy?

