Comments on: In-store wine customers: you are chumps

By: Craig

Craig — Wed, 10 Nov 2010 15:48:19 +0000

I had a similar experience at a store in NYC. I had seen via wine-searcher and their website that they had something I wanted at a great price, but when I went in, it was marked 10% higher on the shelf. OK, so I brought it up to the counter, and was told “that’s the web order price, not the in-store price.” A little irritating, so I said, well, then, I’ll just place the order on the website and I’m already here to pick it up. Nope, can’t do it, it takes 24 hours to process the web order and you’ll have to come back tomorrow. By now I’m pretty annoyed, and the manager explained to the clerk that if a customer knows the web price, they’ll honor it on the spot, which seems fair, but it still left a feeling that their practices are somewhat unsavory.

By: Anatoli Levine

Anatoli Levine — Thu, 04 Nov 2010 21:48:23 +0000

The logic can be found behind both scenarios – cost on Internet can be higher or lower then cost in the same “brick and mortar” store. Of course the best case is when prices match. I know of the stores in New Jersey where situation is actually opposite to the one describer. Wine Buyer is online store for Bottle King, and I had being many time in the situation when the the same wine can be found cheaper in the store than online (but the inventory don’t always match). And in general, the online store is expected to be used by the customers who can’t physically come into the store…

By: Daniel

Daniel — Mon, 01 Nov 2010 16:55:18 +0000

LDK,

Great point, unfortunately about 90% of people that work/own wine stores know nothing about wine.

By: LDK

LDK — Mon, 01 Nov 2010 16:52:40 +0000

How about the consideration of the hopefully informative, helpful staff in the store? An excellent salesperson is valuable for those who do not know exactly what they are looking for and need help. I know plenty who know what they love, but don’t have time and appreciate a professional to guide the buying experience. Worth every penny for someone knowledgeable and friendly. Those that know exactly what they are looking for and have more time can bargain hunt.

By: Dan

Dan — Sat, 30 Oct 2010 18:00:25 +0000

Okay, you are correct on Travelocity/Expedia, but the airlines, hotels, car rental services do have brick and mortar, and yes, they have a lower price. I have no idea what peapod is, but I know that when I was living in NYC, the local groceries that offered online shopping did have a lower price for many things bought online, and often had special promotions that were online only. It’s also not something new in the wine retail world, at least going back as far as an internet presence existed for many stores – internet only promotions have been a part of the business for at least the last 7-8 years, probably longer. And yes, it is typical in many retail businesses to offer a discount, or special promotions, to online shoppers versus in-store shoppers. Maybe not where you live, I don’t know, but everywhere I’ve lived, yes.

By: Daniel

Daniel — Sat, 30 Oct 2010 16:51:15 +0000

Dan

My point is that do other stores in other areas of doing business have two different prices?

Travelocity and Expedia have no brick and mortar.

Stop and Shop supermarkets have both (peapod is their online store). I believe Peapod prices are higher than brick and mortar, or at least the same, but certainly not cheaper, unless they run a sale.

To compare correctly, you must compare what an online store does vs. THEIR brick and mortar store. IMO, of course.

By: Dan

Dan — Sat, 30 Oct 2010 16:38:22 +0000

I have no idea what Liberty Travel in particular does, but, there are generally discounts when you go directly online to an airline, hotel, or car rental – or to a service like Travelocity or Expedia. The point is, it’s common practice in many industries to offer a discount for self-service, and something that is part of our culture. It is apples to apples – as I said, many grocery stores do it as well. If you’re going to limit your purview to only small retail wine shops, it becomes a silly conversation. Having worked retail wine sales, I can tell you that the amount of time spent by a salesperson with a typical in-store customer is probably about 10-15 minutes on average – if someone orders their stuff online, it can often be packed up by someone other than a salesperson (i.e., let’s face it, a lower paid stockperson), and probably takes no more than 2-3 minutes. And that frees up the salesperson to focus on the in-store customers, giving them more attention, and yes, perhaps, depending on the store, at a premium. The fact that they store that Tyler went to gave him the discount when he brought it up is a plus on their part – they could have just as easily said, as some other industries would, that that price was only for online purchases.

By: Daniel

Daniel — Sat, 30 Oct 2010 15:56:47 +0000

Does Liberty Travel online offer better deals than their office, Dan?

We need to compare apples to apples.

By: Dan

Dan — Sat, 30 Oct 2010 15:53:15 +0000

I find it a perfectly acceptable practice, though 20% seems a bit excessive as the difference. We do the same in many industries – it’s often far less expensive to make your own travel arrangements – airfare, hotels, rental cars – than it is to tie up an employee’s time. Many of the grocery stores that offer online “self-shopping”, have online only discounts. Why not with wine?

By: Erol Senel

Erol Senel — Tue, 26 Oct 2010 13:46:49 +0000

RE: Wineguider/Cakebread

Tyler’s example of taxing for the sake of additional cost of human interaction is a real issue.

The huge variation of cost is something that is very different. Many factors come into play. The primary is the motives of owner. In some cases, a shop may be trying to simply move inventory to free up capital, another may be slashing prices due to lack of demand for certain wines.

Outside of Cakebread, Silver Oak AV and Duckhorn has had to deal with less than stellar reviews which has significantly weakened demand in some markets (city/town, regional, etc). In some markets, there is still strong demand for these wines, so the prices have remained at normal levels. However in others you can find these same bottles at 30-40% off in most.

In cases like these, I think it’s the consumer job to be savvy. I don’t think it is scummy at all. If the shops are in the same market, there is usually a reason for the discrepancy or one or more of them is clueless as to what the competition is doing.

That was probably too much typing…

By: Dr. Vino

Dr. Vino — Mon, 25 Oct 2010 19:24:36 +0000

Wineguider – Prices can vary widely for a number of reasons, especially if they are retailers in different states. Wholesale prices may vary by state so, to continue with your example, Cakebread’s wholesale cost may even be above a retail cost in another. That’s one reason it is good to have the ability to buy wine from retailers in different states, a right that is under some threat now in Congress.

So yes, a pretty different situation from the one I encountered at one store.

By: Wineguider

Wineguider — Mon, 25 Oct 2010 19:14:59 +0000

Yeah, I recently reviewed Cakebread chardonnay, and found it in one store for $53, another for $40, and online for $32. What the heck!? I know it’s not the same problem you’re talking about, but this kind of variation also feels scummy, to me.
-Wineguider

By: Daniel

Daniel — Mon, 25 Oct 2010 16:38:38 +0000

Thanks, Gregg. We had about 18 months of hell. The worst appears to be behind us!

As a whole, I do factor in the RIPs when I see NJ pricing.

By: bchapnj (Bill Chappell)

bchapnj (Bill Chappell) — Mon, 25 Oct 2010 16:03:09 +0000

Twitter Comment

Dr V hits a nerve, or two. RT @drvino: “Greetings in-store customers: You are all chumps.” [link to post] #winestores #dualpricing

- Posted using Chat Catcher

By: Erol Senel

Erol Senel — Mon, 25 Oct 2010 15:25:05 +0000

Awesome topic Tyler.

Considering the current state of the economy and retail wine shops, this is just bad business. You are basically taxing people for being customers and giving you the opportunity to upsell, not only product but yoru services as well. All of this during a time when customers are sometimes hard to come by.

This same issue takes place in the fine dining industry as some restaurants have raised prices to make up for the lack of traffic to cover for spoilage and staff costs, in essense taxing the people who actually come in for dinner.

It just doesn’t make sense.