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