Saturday, January 13, 2007
To charge or not to charge (for tasting)?
One of the many thoughts that have been running through my head lately regarding winery operations is the issue of charging for wine tasting. Are free wine tastings really a big advertising pull? Will customers be willing to pay a small fee to taste your wine or walk out the door in disgust?
I have run the gamut in my tasting adventures. From places like Sandhill Crane Vineyards in Jackson, MI where you can (and strongly encouraged!) taste all 16 of their wines for free, to OH & NY wineries that charge a few bucks to taste a limited flight of wines, to some CA wineries that wanted $15 for the privilege of tasting their wine and then had the audacity to charge more for their reserve wine list (OK, I did walk away from that one). But other charging practices include a price to taste, but refunded/waived if you purchase a bottle. Now, one also has to take into account the state & local laws regarding wine tasting--this is alcohol we're talking about after all. CA & MI have pretty liberal laws that allow wineries to offer free wine tastings. Other states require a fee (can't have these liberal wineries pouring free alcohol to any Tom, Dick, or Susan!), so the question becomes a moot point.
From a taster's perspective, I have to admit that I love free wine tastings! I'm probably also more apt to purchase a bottle after a free wine tasting. I have to like it, but I may be more encouraged to like it and purchase a bottle as a gesture of appreciation (I find it extremely difficult to walk into a winery and not buy something). However, from the winery's perspective, free wine tastings could be a financial nightmare. You're literally pouring your product out the door in hopes of attracting sales. Which has to lead to higher bottle prices because the winery has to recoup the production cost of the tasting room wine in every bottle that's sold. I think this is especially a concern of smaller wineries. If you only make 200 gal of a wine, how much can you afford to pour away in order to sell the rest?
I open the floor for debate. If the practice is up to the winery, would you choose to patronize a winery because they did or did not charge a tasting fee? If you're willing to pay a small fee to taste a winery's product, how much is too much? And is that price location dependant?
I look forward to your comments!
Regards,
a Wine Student
I have run the gamut in my tasting adventures. From places like Sandhill Crane Vineyards in Jackson, MI where you can (and strongly encouraged!) taste all 16 of their wines for free, to OH & NY wineries that charge a few bucks to taste a limited flight of wines, to some CA wineries that wanted $15 for the privilege of tasting their wine and then had the audacity to charge more for their reserve wine list (OK, I did walk away from that one). But other charging practices include a price to taste, but refunded/waived if you purchase a bottle. Now, one also has to take into account the state & local laws regarding wine tasting--this is alcohol we're talking about after all. CA & MI have pretty liberal laws that allow wineries to offer free wine tastings. Other states require a fee (can't have these liberal wineries pouring free alcohol to any Tom, Dick, or Susan!), so the question becomes a moot point.
From a taster's perspective, I have to admit that I love free wine tastings! I'm probably also more apt to purchase a bottle after a free wine tasting. I have to like it, but I may be more encouraged to like it and purchase a bottle as a gesture of appreciation (I find it extremely difficult to walk into a winery and not buy something). However, from the winery's perspective, free wine tastings could be a financial nightmare. You're literally pouring your product out the door in hopes of attracting sales. Which has to lead to higher bottle prices because the winery has to recoup the production cost of the tasting room wine in every bottle that's sold. I think this is especially a concern of smaller wineries. If you only make 200 gal of a wine, how much can you afford to pour away in order to sell the rest?
I open the floor for debate. If the practice is up to the winery, would you choose to patronize a winery because they did or did not charge a tasting fee? If you're willing to pay a small fee to taste a winery's product, how much is too much? And is that price location dependant?
I look forward to your comments!
Regards,
a Wine Student
Comments:
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(I love you blog as much as you love my Michigan Reds!)
When I visit a winery, I am more inclined to purchase a bottle of wine when I have a "free" tasting. When I am required to pay, I do not feel that compunction and will only purchase a wine if I am totally enamored with it.
In the State of Michigan it is illegal to charge for tastings. However, on our limited production high end Red wines, we will offer "free tastings" only with the purchase of a discounted logo glass. This is not to make a profit, but to limit a precious commodity to people who are serious about that type of wine.
In Michigan, as a winery you are bound by TAM (Total Alcohol Management) guidelines to limit your tastings to around six. That takes into account that a patron may visit another tasting room within the hour. to offer more than six tastes would be negligent.
When I visit a winery, I am more inclined to purchase a bottle of wine when I have a "free" tasting. When I am required to pay, I do not feel that compunction and will only purchase a wine if I am totally enamored with it.
In the State of Michigan it is illegal to charge for tastings. However, on our limited production high end Red wines, we will offer "free tastings" only with the purchase of a discounted logo glass. This is not to make a profit, but to limit a precious commodity to people who are serious about that type of wine.
In Michigan, as a winery you are bound by TAM (Total Alcohol Management) guidelines to limit your tastings to around six. That takes into account that a patron may visit another tasting room within the hour. to offer more than six tastes would be negligent.
Hi Wine Student,
I just discovered your blog thanks to Google Alert. We appreciate your kind words.
A few thoughts on charging for tastes... According to Michigan liquor laws, wineries are not allow to charge for tastes. Some are figuring out ways to get around it by charging for a wine glass or a cheese plate (or something like that) rather than the actual tastes. Legally, if you pay for tasting in Michigan, you should be getting something else for your money.
We don't charge for tasting and probably never will (except for our ice wine where you get a cordial glass). We feel pretty strongly about it -- we don't like the idea of charging for tastes or limiting the number of tastes.
Yes, the cost of the tastes does figure into the cost of the wine. But it doesn't alter the price dramatically. Bottles and label printing are actually more expensive, I believe.
We look at the subject of charging for wine from a different direction. Most people who come into the winery THINK they like only specific types of wine (dry, red only, sweet only, that sort of thing). We've found that if they taste everything, they discover lots of new wines that they enjoy. So in the long run, giving free tastes of everything actually sells more wine.
Heather Price
Sandhill Crane Vineyards
I just discovered your blog thanks to Google Alert. We appreciate your kind words.
A few thoughts on charging for tastes... According to Michigan liquor laws, wineries are not allow to charge for tastes. Some are figuring out ways to get around it by charging for a wine glass or a cheese plate (or something like that) rather than the actual tastes. Legally, if you pay for tasting in Michigan, you should be getting something else for your money.
We don't charge for tasting and probably never will (except for our ice wine where you get a cordial glass). We feel pretty strongly about it -- we don't like the idea of charging for tastes or limiting the number of tastes.
Yes, the cost of the tastes does figure into the cost of the wine. But it doesn't alter the price dramatically. Bottles and label printing are actually more expensive, I believe.
We look at the subject of charging for wine from a different direction. Most people who come into the winery THINK they like only specific types of wine (dry, red only, sweet only, that sort of thing). We've found that if they taste everything, they discover lots of new wines that they enjoy. So in the long run, giving free tastes of everything actually sells more wine.
Heather Price
Sandhill Crane Vineyards
I always enjoy free booze. Especially from the Cornhusker state. I recently sampled some free wine from a new winemaker in Michigan--Hidden Lake vineyards--and I know I'll be back for more. Once I regain my sense of feeling in my fingers...
# posted by 
: 12:18 PM
: 12:18 PM
A few bucks for wine tasting doesn't turn me away. I like free as much as the next guy, but if I can't part with a few dollars for tasting, I probably won't part with them to purchase either.
# posted by : 2:00 PM
: 2:00 PM
Nice topic!
As a consumer, high tasting fees can be an impediment to visiting, but I can see why wineries do it. I think the happy medium would be to charge a tasting fee that would contribute to the purchase of a bottle (if one were purchased - same as refunding fee when a bottle is purchased). I think that really helps both sides, IMHO.
-Nico
"Tinto TV" budget home winemaking video blog
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As a consumer, high tasting fees can be an impediment to visiting, but I can see why wineries do it. I think the happy medium would be to charge a tasting fee that would contribute to the purchase of a bottle (if one were purchased - same as refunding fee when a bottle is purchased). I think that really helps both sides, IMHO.
-Nico
"Tinto TV" budget home winemaking video blog
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