[July 31, 2025 – Sandra Beals]
Today, I continue with the Wine Business Success Series: Prioritize Value Add OVER Deep Discounts. We have all seen it – “Flash Wine Sales” as soon as tasting room visitation declines for a short period. Instead of building effective Reengagement Sales Models, some direct to consumer sales and marketing teams panic because proven models aren’t in place to ensure an ideal mix of consumers fill up the visitor center from month to month. Deep discounting can always boost sales for a short period, but isn’t a sustainable sales model when developing and retaining brand loyalists. Flash sales can harm a business’s long-term sustainability and brand image. Focusing instead on adding value to products and services is a more effective strategy for cultivating customer loyalty, boosting profits, and strengthening brand identity.
A June Survey conducted by Deloitte Insights revealed that 74% of respondents made at least one splurge purchase this past month with 40% in the “food and beverage” category. The median amount of the splurge purchase was $50. While consumer spending has been more conservative among wine consumers in the US this past year, marketing teams have the opportunity to tap into this important buying signal with value-based offers.
We know that the majority of Gen Z consumers choose to do business with brands they admire. Wine brand marketers have an incredible opportunity to attract Gen Z consumers, top spenders in the US, by first understanding their spending behaviors. According to a McKinsey Study “State of the Consumer 2025”, Gen Zers (born between 1996 and 2010) are projected to make up not only the largest generation but also the wealthiest in history. The average 25-year-old Gen Z consumer in the United States has a household income of $40,000, 50 percent higher than the average baby boomer’s at the same age (accounting for government transfers, inflation, and taxes). Gen Z spending, which is growing twice as fast as previous generations’ spending did at the same age, is on pace to eclipse baby boomers’ spending globally by 2029. AND, these consumers like to make splurge purchases according to this study.
Here is a list of reasons why Deep Discounting isn’t a part of a solid Direct Wine Sales Plan:
- Erodes Brand Value: Frequent discounts can lead customers to perceive your products as cheap or of lower quality, making it difficult to justify full price in the future.
- Attracts Less Loyal Customers: Discount-driven shoppers are often price-sensitive and may not develop strong brand loyalty, potentially switching to competitors offering better deals.
- Squeezes Profit Margins: Deep discounts directly reduce your profit margins, potentially leading to cash flow issues and hindering investment in crucial areas like innovation and marketing.
- Damages Brand Reputation: Over-reliance on discounts can encourage dependency among consumers, reducing their willingness to pay full price. In addition, this sales strategy conflicts with member benefits and often leads to an increase in membership cancellations.
Here are some benefits of value-added direct sales strategies:
- Differentiates Products & Services: Value-added incentives attract customers who prioritize quality and unique benefits. Allowing consumers to choose their value-add incentive is a great way to tap into their interests.
- Enhances Customer Satisfaction & Loyalty: By focusing on customer needs and exceeding expectations, wine brands can build stronger relationships and encourage repeat business.
- Justifies Higher Prices: When customers perceive higher value, they are often willing to pay more for products or services that deliver on those promises.
- Improves Customer Experiences: Gathering feedback and actively seeking to improve products and services based on customer needs leads to a better overall experience.
- Boosts Brand Value: Emphasizing quality, reliability, and superior customer experiences strengthens brand reputation and attracts high-value customers who are less likely to churn.
Here are some examples of Value-Added Direct Sales Strategies:
- Our friends at Round Pond Estate and Trinchero have consistenlty marketed Value-Add offers by leveraging “Shipping Included” on a minimum bottle purchase. The team at Silver Oak invites online shoppers to gift “Personally Etched Bottles” for special occassions as a value-add incentive. “Giving Back” is another way consumers feel good when opting into value-add offers at Domaine Carneros. Find examples of each offer below.
- Unique Features & Innovation: Smartphone companies with advanced camera technology can justify higher prices based on the added value of enhanced photographic capabilities.
- Personalization & Customization: Subscription services offering customizable options like Barkbox, which allows pet owners to personalize their pet care subscriptions, can attract customers seeking tailored experiences.
- Exclusive Access & Membership Programs: Loyalty programs that combine points, VIP tiers, and customized perks can encourage repeat purchases and foster stronger brand connections.
- Building Strong Relationships: Automobile dealerships that offer services like free rental cars during repairs can cultivate customer relationships and generate repeat business.
In summary, building long-term consumer trust by adding value to products and services is a more sustainable path to direct sales success than relying on the fleeting appeal of deep discounts. PRO TIP> Leverage Customer Preferences/CRM Details to offer thoughtful value-add incentives and be sure to personalize communication.
Reach out to schedule a 90-Day Sales Boost Coaching Program to take your Direct Sales Plan from Good to Great! Your Value-Add Offer>> RECEIVE 2 Hours of Leadership Development Coaching at no charge with all 90-Day Sales Boost Program Sign-Ups through August 31, 2025.