Vineyard & Winery Management

September/October 2015

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w w w. v w m m e d i a . c o m S e p t - O c t 2 015 | V I N E YA R D & W I N E RY M A N A G E M E N T 1 7 consider this fact when interpreting those results. "The average winery tasting room visitor to Michigan is very different than the average visitor to Napa and Sonoma." Conducted as part of the Northern Grapes Project, the MSU study collected data from more than 600 people who had visited a winery tasting room in Michigan in 2012. "Up until about six years ago, you weren't allowed to charge for tastings he issue of tasting room fees is a complex one for many wineries. How much to charge and what that fee includes depends on several factors and objectives. Location plays a critical role, as does wine quality. But myriad other consid- erations, such as whether a winery is a stand-alone affair or part of a wine trail, and whether a winery offers tours, activi- ties or entertainment in addition to wine tasting, also affect pricing. If wineries charge a tasting fee, do they partially or fully refund it if a visitor purchases a bottle of wine – or six? The conundrum continues. Wineries in high-traffic destinations, such as Napa and Sonoma counties, may charge hefty tasting fees to detract day- sippers and allow tasting room staff to focus on more serious buyers. Yet win- eries in less-developed wine-producing areas, such as Michigan and New York, are searching for the sweet spot of turn- ing tasting fees into a profit center without pricing themselves out of the market. While there's not a one-size-fits-all for- mula for fees, tasting room managers can benefit from regularly reviewing their fee structure and analyzing opportunities for growth based on their objectives – wheth- er that's brand-building by boosting traffic or increasing the number of qualified buy- ers coming through the door. HITTING THE MARK IN MICHIGAN "In Michigan, the average tasting room visitor is not as educated as the aver- age wine drinker in the state. People are going to tasting rooms for fun. It's a way to spend the day," explained Dan McCole, assistant professor of commercial recre- ation and tourism at Michigan State Uni- versity in East Lansing, who co-authored the study, Michigan Wine Tasting Room Visitors' Behaviors and Visit History. " M o s t t a s t i n g r o o m s t u d i e s h a v e focused on visitors to more established wine regions," said McCole, adding that wineries in less-mature regions need to Charging Ahead H o n e y o u r t a s t i n g f e e s t r a t e g y + When evaluating tasting fees, the No. 1 consideration is location. + Wine quality, atmosphere, tasting room staff knowledge and friend- liness are also important. + People crave an experience most of all. Create a memorable visit and encourage repeat customers. + Consider offering a VIP experience that qualifies buyers and entices them to buy. AT A GLANCE WINE WISE MARKETING JENNIFER STRAILEY Dan McCole of Michigan State University co- authored a study on the behavior of the state's tasting room visitors, and found that 30% avoid wineries that charge for tastings.

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