Attracting New Customers to the Winery

There is much talk about what Napa needs to do to attract more visitors. This is also true for Sonoma, Paso Robles and other premium wine area. The answer is simple, really, and it's not really simple.

 

This list found on Yelp under "Best cheap wine
in Napa." Note a couple of their least expensive 
wines aren't from Napa grapes. Many Napa
wineries go elsewhere for less expensive fruit.

First, wine has an intimidation problem and that has been there as long as I've been around, and that's a long time. This article is about something more recent -- rising prices. Wine isn't the only consumer product with increasing prices because pretty much everything has this problem. Wine is a luxury, not a necessity, making it easier to just not have it in your budget anymore.
 

How do you get more people into Napa Valley? Price. A simplified fix is more wines under $50, and $30 tasting fees. 

A mid-range Napa Cabernet is $50 to $100 with the "good stuff" going for $150, $200, $300, and more. Getting cheaper Cab made from Napa at current grape prices is possible, up to a point. Is it worth it to produce a $35 red wine from Napa grapes on thinner margins? It probably won't be Cabernet because those grape prices are really high, but that may come down as demand dwindles.

The other issue with Napa is restaurant and lodging prices. Have you looked at the busy season prices of rooms in Napa? Holy hell! 

Napa's Cabernet's price problem is similar to Sonoma's Pinot Noir problem. There are too many average Russian River Pinots for $60 and over. Again, it's a function of grape prices and along with demand. The other problem Sonoma has is Zinfandel approaching and going over $60. Sorry folks, Zin just isn't that kind of wine. As the demand for wines, including Pinot, drop, so should grape prices, I hope. 

The tasting fees are easier. Yeah, I'm sorry if you built that opulent $2 million tasting room. In Sonoma I've heard of cheaper tasting flights for anyone under 35 years old, or anyone over 55. Also, cheap or even free tastings on certain weekdays. I expect to see more of this come during the slower winter season. Napa's average standard seated tasting is $50 to $75 with the various reserve options over $100. There are some less expensive places where you can stand and taste at the bar, just like in the old days!

Sonoma County's average tasting fee is about $25 to $45 for a standard seated tasting. Cabernet prices have held the line pretty well. I've had good ones for under $50. I've had enough very nice ones for about $60. 

Wineries are feeling a financial squeeze because of low sales. The trick is to know if lower prices for more sales is the fix. Some run on too small of a margin already, mostly little family operations with low production. If you want to attract younger, new buyers it is all about the price.