|
Winery Management Software - Where Are the True
Benefits and Costs?
July 06, 2011 - Livermore, CA: Too much to do with too little to do
it with! As business owners we are deeply immersed in the daily work and emergencies that come our
way and I find that we don't make the time to see the loss of time, money and actual customers
that is incurred by not stopping to bring in solutions that would streamline and increase
business.
I think that is why I find so many wineries managing their tasting rooms and clubs with general
ledgers, simple cash registers and other manual processes. Yes, it works but a closer look at
the time that is required to manage shipping costs, sales taxes, compliance, etc. will more
often than not add up to significant losses. Here is just one example: If you ship 100 packages
and underestimate actual shipping charges by $ 2.00 per package the loss is an immediate $ 200.00
of expense that could have otherwise been saved.
So when is the right time to consider bringing in a solution? I have found that there is no exact answer.
It all depends. However taking the time to evaluate the expense of the current system (manual or technical)
and associated costing should be reviewed every 6 months.
Keep in mind that the cost of the process goes well beyond the actual price tag of the solution.
Yes - the manual process could be considered "free" but the expense and losses are far from it.
As you evaluate priorities and consider changes to your business the TRUE VALUE of any change may be hidden.
Here are a few areas to consider.-
- Basics: Review how the new solution(s) would replace your current process. Most people
look at their existing process for managing tasting rooms and clubs and evaluate a solution on that
general process - and that makes sense.
- Changes: Equally important is to consider how the solution can IMPROVE the process and go
beyond the standards to increase sales, retention and reduce hidden expenses.
- Exceptions: Often forgotten from the evaluation is to look at the exceptions to your standard
process and see how the solution will help streamline those challenges.
- Expertise: All solutions need support. A great question to ask is the how knowledgeable is the support
team in regards to your goals? Can they offer you valuable suggestions beyond pushing buttons to make the software
work and truly offer solutions on how to grow your business?
BEWARE - anyone claiming they have the best solution in the market is not aware that everyone's needs are unique.
There is no single-ultimate-solution that is best for everyone. Investing time to see demonstrations, ask questions
and evaluate three or more options is the best way to make an informed decision.
Take a close look at how the solutions address the basics, improvements and exceptions and then be open for new ways
to improve your business, beyond the basics. Getting the most out of your investment in time and money takes a bit of
investment of time but the profit margins can be quite positive.
For instance:
- QuickBooks Accounting Integration: A majority of small to medium size wineries use Intuit QuickBooks
for accounting. More and more wineries are also adding QuickBooks POS in their tasting rooms with great results.
If you purchased a solution that claims to works with QuickBooks Financials (accounting) and once the system is
installed it turns out that the sales person's example of "works with" is not yours, you may end up investing
hours of time each month adjusting your accounting and inventory entries. In this case the "solution" that was
put in place to save you time just cost you a significant amount of frustration, time and expense. The questions to
ask yourself are:
- What is the cost of that process in time, errors and frustration?
- How much time could you save by streamlining the integration?
- Could you save time when processing compliance reports?
- Could you save time and reduce errors in your accounting and reports?
Where else could you be investing time and resources that could otherwise be saved?
- Easy Shipping Expenses:
- Actual Shipping Rates: UPS, FedEx and GSO change rates officially twice per year but did you
know the "SURCHARGES" change on the first Monday of every month? When a $ 2.00 surcharge is added to
each package and you ship 100 packages before you manually update the shipping rates in your "solution"
then you undercharged your customers for shipping. In this example that adds up to $ 200.00 in expense.
In turn, that is another expense that your solution or lack thereof cost you.
- Delivery Driver Notes: When you ship a package you pay for shipping but did you know you also
pay FedEx and UPS for returned packages? Yes! It makes sense that if you can reduce the number of returned
packages that you would also reduce shipping costs. How can your system (manual or automated) do that for
you?
- Address Corrections: Did you know you may be getting charged when a shipper
needs to correct the address you provided? True! Can your system correct the shipping
addresses so that you eliminate those fees?
- Delivery Failure Notifications: FedEx, UPS & GSO all provide notification
that a shipment failed. This provides you with time to contact the customer
- Delivery Driver Messages: WWhen receiving a failed delivery notice would it
help you to know if the person no longer lived/worked there? If there was a security gate
with no code? Some solutions can provide the notes from shippers.
- Customer Service is also raised to a new level
- Unfavorable Weather Conditions: How much would you save if you did not frustrate customers and have to
replace wine that was damaged due to weather conditions being too cold or too hot? In addition to the product loss
you spent time apologizing to the customer, packaging, shipping and managing the loss. It could even be worse.
The customer may not know the wine was damaged and may simply may judge your wines as bad, resulting in a lost
customer.
- Customer Service: The ability to acknowledge a club member and provide the club benefits is important
in the face-to-face sale as well as in the online sale. Recognizing club members can make them feel warm and
welcome but truly, everyone person who walks into your business should be treated with excellent services and
warm welcomes. The "service" portion of this comes in the ability to efficiently confirm current membership status,
offer the respective discounts and benefits. But everyone should be treated as a valued customer and visitor.
- Flexible Discounts: You may offer a case discount to everyone and additionally offer a club member
discount. I have found that discounting comes in a variety of creative ways from adding 2% discount for every
year a club member remains in a club to percentage discounting depending on the quantity of items purchased.
- Customer Communications: Direct to Consumer Sales and Clubs are about and experience and a relationship.
Communications are a significant factor. Face-to-face, email, phone calls are all standards for today's market and
your solution may help with that. If your target market are such that they Tweet, Facebook or use other social
media then respective links to those tools may be valuable to consider.
- Communications to Improve your Relationships with Customers: How does the solution help you...
- Personally communicate with club members to update credit cards and addresses
- Announce a Club Release party
- Remind people to pick up the club release or let them know you will ship it to them (S&H will apply).
- Remind people of an upcoming event
- Announce new releases
- Invite people out on an extended weekend
- Etc.
Each solution on the marketing has strengths and weaknesses. Seeing a demonstration on a video is NOT interactive
and does not allow you to ask questions or see how the system would address your specific needs.
- Ask for a detailed demonstration.
- Ask to see how the system addresses communications in general, for failed credit cards in club
solutions, updates on addresses, etc.
- Confirm you have multiple choices with shippers and the Actual Real-Time Shipping Rates are provided
- Ask for references and call the references!
Wrong Decisions: Should you find that after you select, install and try a solution for 6 months
and find it is not the right solution for you always know what your options are to export your
information out of the system and move on.
|