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Bi!! Bi!! is offline
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Default Opening a Wine Store - any store owners out there to share theexperience?

On Feb 1, 3:06�pm, Mark Lipton > wrote:
> Bi!! wrote:
> > Good point Mark. �Additionally if you don't charge for the tasting you
> > will be increasing an already burdensome overhead. �I think that these
> > plans always sound good on paper but when it's your capital at risk it
> > gets harder and harder to justify the expense of opening even $25
> > bottles just for the casual taster. �The reality is that high end wine
> > sales have been relegated to the few old time retailers around the
> > country with the track record, cash flow and sales to garner a supply
> > of high end wines since most of them are now extremely allocated and
> > come with very large strings attatched to boatloads of plonk. � The
> > business model for many of the US winemakers is to only allow
> > distribution to restaurants forcing the consumer to purchase wines
> > directly from the winery. �The harsh reality is that wine is a
> > comodity no different from widgets, gadgets or any other consumer
> > product and when you stop thinking about it as such and start getting
> > esoteric and artsy about it, you will probably end up very unhappy
> > (and possibly broke) with the wine business. �It's about volume and
> > velocity and relationships and those are all hard things to control at
> > times.

>
> It's really the same as in book or electronics retailing: you can't
> compete on volume or profit margin, or the big operations will drive
> your business into the ground. �Instead, you have to focus on the items
> the big guys won't stock because they aren't made in large enough
> quantity. �My favorite wine stores have just a token stock of "trophy"
> wines and instead focus on $10-$30 bottles from smaller, artisanal
> producers. �Returning to the original topic, the model I love is that of
> Solano Cellars in Berkeley, which has a small wine bar in the back where
> they pour a weekly selection of their inventory (6 red, 6 white) for
> $3-6 per pour and sell small plates of food. �It sounds like the Terroir
> Wine Bar in San Francisco is built along similar lines.
>
> Mark Lipton
> --
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Yes, exactly and these are the new guys on the block who are going to
make it over the long term provided that they make the right buying
choices within the $10-$30 range. I beleive that there are plenty of
wines to fill that niche but most of them are not domestic. I have
seen a few "Vino 100" franchises that are for sale that don't seem to
being to well though. I don't know if you have any in Indiana but we
have a few in Ohio.....100 wines for $25 or less. The company is a
franchise deal.