The benefits of subscription payments are well-known: With this model you get predictability, reliable cash flow, and numerous opportunities to engage with customers who are as passionate about wine as you are.
Although it might seem as though a recurring billing wine club is virtually set-and-forget, the truth is that there is a lot more involved in your success than offering delicious vino and configuring your ecommerce software.
1. Know the law.
The reason you needed to apply for a high-risk merchant account when you were getting started is that you sell products that contain alcohol in an industry that is also bound by state and federal regulations specifying age, methods of payment, and other factors.
It is essential that you understand the complete set of local, state, and federal restrictions that affect your industry. Failing to follow them to the letter could mean fines, reputational damage and even business closure.
2. Determine your pricing.
In order to determine the cost and quality of the wines that you are going to sell, you first must understand your customers.
Use surveys and analytical tools to determine what cost your clients are willing to pay per bottle, and then find selections you feel good about that match these specifications.
Furthermore, remember that you must also factor in additional expenses, including packaging materials, processing fees, and delivery costs.
As you calculate what you will charge your customers per month, these need to be incorporated into your final calculation.
3. Cultivate warm working relationships with distributors.
Particularly if you are selling niche wines, your available supply might be limited. For this reason, it is important to collaborate well in advance with the distributors who provide you with your various wine selections.
We suggest having a calendar of at least three months into the future to ensure that you never fall short at the last minute.
Once you have a smooth working relationship with a distributor, much of the stress in running your business is reduced.
That’s because that company can keep you apprised about upcoming delivery dates or delays, offer you exclusive deals that appeal to your customer base (if legal) and even hold some cases back until you finalize your next order.
4. Formalize your billing process.
You need to offer the members of your wine club a subscription billing system that sends invoices reliably while also allowing customers to access and manage their own accounts.
Although these billing services come with added costs, giving members control will reduce the number of expired accounts and will allow people to make adjustments independently without taking any of your time.
5. Provide full transparency and frequent repetition.
Matters such as pricing policies and return and shipping protocols can be the sources of confusion and customer dissatisfaction. Therefore, taking the time to make them known prominently and frequently should be at the top of your priority list.
You will also need to devote time and staff resources toward promptly answering customer questions and posting regular updates on your social media pages.
Wine clubs are exploding in popularity because they give consumers a way to interact with a brand they know while having the chance to try wines they have never tasted before in the comfort of their own homes.
When you take the time to form your club from the ground up with an emphasis on legal compliance, accurate pricing, positive relationships with third-party vendors, quality billing, and transparent processes, your fledgling wine club can be equipped with everything it will need to fly above its many competitors.
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