Keg Cooler | Wine Cooler Blog

WINE ISSUES: WINE AND BEVERAGE COOLER INDUSTRY REALITY

Wine and beverage coolers are great appliances to have in the home. They are especially designed to store your favorite vintages and other beverages at just the right temperatures and provide easy access when entertaining. Since the first of the year, the manufacturers are making many changes that will affect your ability to find and purchase these appliances.

BACK ORDER REALITY

The wine cooler and beverage center manufacturers enjoyed record sales for the months of November and December last year. Up to that time, the industry showed a great reluctance to maintain high stock levels of their products. As a result, manufacturers, wholesalers and retailers were faced with many orders that they couldn’t fill. Back orders of these products became the rule rather than the exception. Demand exceeding expected levels and lack of stock caused many a customer frustration. The back order situation is still an issue as we start 2012.

NEW PRODUCT DEVELOPMENT

The last couple of years, manufacturers generally did not expend a lot of money with new product development because of the general state of the economy. For the last couple of years, the cooler models available for purchase remained a relative steady and unchanging list for customers to consider. Since the first of the year, our business experienced an increase of discontinued models. In our case, the discontinued models accounted for about 6 to 8 percent of our offered products. Manufacturers at the same time began introducing new replacement wine cooler models, but the reality is they are still trying to catch up.

PRICE ESCALATION

Another customer reality is that prices on beverage and wine cooling appliances are increasing. Pricing on many items have increased anywhere from 5 to 15 percent in the last 30 days. Everyone will be paying more for these products as the year progresses. Most manufactures now employ MAP (Minimum Advertised Price) pricing strategies for most of their best-selling top of the line models. Customers will find it harder to find deals on the MAP priced products as everyone is required to advertise them at the same minimum price. Retailers that violate MAP pricing directives can be suspended from offering these products in the future. Pricing competition is obviously reduced as manufacturers and suppliers seek higher profits after a couple of tough years of declining business revenues.

THE FUTURE STATE

I believe that the industry will use 2012 to settle into a situation where they will continue to develop new and innovative products to sell and get a better handle on demand so they can reduce the constant back order situation we are now in. Of course, the state of our American economy and its ability to sustain consistent growth will ultimately define any industry outcome.

MY RECOMENDATIONS

I do have some recommendations for you the consumer. First, if you run into a situation of a back ordered product, don’t be reluctant to get on the list for the first restocked items. Sometimes it is better to wait a bit rather than “miss the boat” on what you want. Be sure and ask for price protection as newly stocked items might come with a price increase if you wait to purchase them later. Second, seek out a company where customer service is important. Call the company and talk to a real human-being rather than a menu. Companies that value you as a customer should make personal contact with you as your order moves forward. Third, when purchasing the more expensive appliances, call the company sales people and ask for delivery capabilities and price breaks. You will never know what is possible unless you ask. Fourth, large companies don’t always have the best deals nor are they necessarily able to provide the best personalized customer services. Some smaller retailers will be able to fill your needs just as well. Lastly, when buying anything of significant price, do your research and perhaps go beyond page one of the search engine listing.

Ronald Senn, Vice-president, Ideal Wine Coolers, 1/24/2012

Wine Storage Solutions: Wine Cooler Shipping Cost Truths

As a web based retailer of wine coolers, beverage centers and other beverage cooling products, the single most frustrating part of our business is shipping. Adding another side to the equation, consumers are often reluctant to pay for shipping of these beverage appliances. I don’t blame consumers for seeking the lowest possible price when buying one of these appliances, but they need to realize shipping these items is not cheap.

Weight and Distance

If one is looking for a wine refrigerator that will store 24+ plus bottles of wine or a beverage center that will store over hundred cans, you must realize these appliances are going to weigh in at 100 pounds plus. Weight is not the only factor related to shipping. UPS, FedEx or standard freight shipping is also based on distance from the warehouse pick-up spot to the home or business of the consumer. Obviously, an item warehoused in Los Angeles, for example, will cost more to ship to New York City than the same item warehoused in New Jersey.

Over Sized Package

Most shipping companies also have restrictions based on package sizing. UPS typically will add an additional charge of over $50.00 per package for shipments exceeding their predetermined size limits. This additional charge often results from “double-boxing” the wine cooler and beverage center appliances. These appliances often come with glass doors and adjustable legs making them particularly vulnerable to damage from the shippers without the added box protection.

Delivery Issues

UPS and FedEx home deliveries are really geared to handle smaller packages quickly and efficiently, but give them something that weighs over 100 pounds and that quick and efficient operation begins to deteriorate. Image a package delivery driver that comes to your neighborhood to deliver a heavy package to you and has to “man-handle” this heavy package to your door. Our neighborhood UPS driver doesn’t even have a dolly to move it with. One of our customers reported that their driver struggled with their delivery and eventually dropped it on the ground. Our “double-boxing” requirement saved it from damage.

Wine Cooler Pricing Verus Cost

Any seller of wine and beverage refrigerators obviously has to purchase their products from a factory or wholesaler. They also must determine the best pricing structure for retailing the appliances considering base cost, overhead expenses and required profit margin. Shipping costs also become part of the marketing consideration. Consumers are going to look at the bottom line by adding up product cost, shipping cost and potential sales tax costs. The retailer that can market the “best bottom line” to the consumer will get the sale. Retailers will use several different strategies for determining market bottom line figures.

Consumer Bottom Line

Consumers will rightfully continue to look at their bottom line total cost. However, I believe they need to be more aware of the shipping dilemmas related to appliance weights, distance and boxing protection. Before you buy take the time to call the retailer, some times better deals can be made than are presented on the web site. For example, if a buyer is from an area near our warehouses, they will have much reduced delivery prices that apply or they may even be able to pick-up the item themselves. Lastly, look for personal customer service where you can talk to a human-being and get the true facts about your bottom line.

Author: Ronald Senn, Vice-president, Ideal Wine Coolers

Blog Reader Messages: Sizzling Wine Cooler Winter Sale

Ideal Wine Coolers recognizes that much of the country is covered with that wonderfull white stuff called SNOW. We are trying to melt some of it down by offering a sizzling hot winter sale of all of our products. We feature an extensive line of undercounter, freestanding, dual zone, countertop, thermoelectric and locking wine coolers. If you would like beverage storage that adds to your stylish furniture collection, we also carry wine cabinet furnture in many capacities and finishes.

Ideal Wine Coolers has over 200 different products for you to peruse that will meet your needs. We pride ourselves on the personalized services we provide. If you want to talk to a human-being instead of a computer, just call us on our toll free line (888-501-7749). We will be more than happy to answer your questions and we even will take your order over the phone. Just ask for Ron or Belinda.

We also want to extend our thanks and appreciation to our many customers from last year.

Author: Ronald Senn, Vice-president, Ideal Wine Coolers