Share |

Can Wine Subscription Boxes Benefit Your Wine Business?

Photo credit: RoseBox/Unsplash

Editor's Note: As the U.S. experiences record daily new COVID-19 cases since re-opening the economy, wine subscription box services may be an ideal revenue source for wineries to offset business lost in tasting rooms to the pandemic.
 
Fifty four percent of online shoppers are subscribed to a subscription box service, with the industry appealing to consumers' demand for a novel experience and convenience. However, is it something that you should consider implementing for your own wine business? From the many advantages for both the consumer and the company to the potential downsides, here’s what you need to know in order to make the right decision for your business.

The key benefits

Subscription boxes are a great idea for many reasons. For consumers, a subscription box brings a regular package of novelty, variety, and convenience, not to mention potential savings, right to their door. Sometimes, subscription boxes even include a personalized curation of products, which is one of the many reasons people stay subscribed. In terms of a wine subscription box, this can mean getting a few bottles of wine chosen specifically for the consumer based on their personal preferences. However, the benefits don’t stop there, as there are many positives for the business side of things as well.

Businesses in the wine industry who are thinking about starting a subscription box service can expect to reap a myriad of beneficial aspects. For starters, not only will there be recurring revenue, but hopping on board with the modern way of product delivery will help your business appeal to a larger demographic of consumers. For instance, those who can’t reach a business’s physical location can still receive your wine through the mail.

Subscription boxes also make a great gift around the holidays and on special occasions, allowing your brand to reach a wider audience — not to mention introduce previous and new customers to your product. Furthermore, the fact that you can reach more consumers (including those who are recurring) can also allow you to receive valuable, constructive feedback that you might not normally get with customers. Thus, you can adjust your subscription box services accordingly and make sure it's successful.

Other important considerations

While there are several upsides to the subscription box trend, there are other things to consider that may be potential downsides. For example, if your consumers feel as though the box doesn’t contain more value than what they paid, they may unsubscribe from the service. Similarly, if the customer doesn’t like the majority of things in the box, they may also opt out of the service. Because of these potential issues, keeping up with novelty can become an issue for the business, as it’s important to keep the consumer engaged and interested from month to month.

The financial aspect of starting a subscription box service is another thing to consider as well. While not overly pricey, it is an added expense to think about, and it’s important to keep in mind that consumers want their boxes to hold an overall value that’s higher than what they’re paying in total. Offering your box at a reasonable price is important, as you can easily lose subscribers if it's overly expensive.

Paying for other things, such as the box design or theme, is another financial aspect to consider as well. For example, will you need to invest in stock just for the subscription box? Or will you pull from existing stock? Will you need to hire a designated staff to manage the subscription boxes, or can your existing staff do so? While these decisions ultimately depend upon the business budget itself, these considerations are essential when creating a plan.

Subscription boxes are a popular way for consumers to get a variety of products delivered right to their door on a regular basis. With that said, for businesses in the wine industry, starting a wine subscription box can be a challenging but beneficial business move that must be carefully considered.

No votes yet

Recommended Reading

No related items were found.