-WADS
-BAM logistics
-Elite wine logistics
-Provino
-Cellarit
-Aus post (has a wine service division)
(Many more)
Deans plan is to not make this the core business but make this the entry program to get customers onboard. Once they have signed up he intends to build them into the B2B platform which is where the profit lies.
Profiting from a supply chain is all about the value add; as a ‘courier’ your not really adding value and thus margins are small. Once you become a reseller and start wholesaling you move up one level in the supply chain and thus start value adding.
He will need his staff pushing as wine sellers now to Every company they can get a hold of.
Competition in this sector is fierce; winedepot is spending a fair chunk on Google AdWords (try searching wine related distribution word ; 3pl wine / wine distribution etc)
However this part of the market will be hard to capture. It’s essentially like a coffee shop changing coffee brands (except coffee stores are usually in 2 year contracts), the cafe will create a relationship with a sales rep / be offered a fair bit of free marketing merch / free training and equipment.
Winedepot needs to offer a few more incentives for these businesses to sign up, will be interesting to see what they are (apart from free delivery for first month).
Will they arrange some winemakers to travel to clientele (larger ones) and explain they’re wines to sommeliers?
I hope they crack it, I just don’t see them doing it overnight or within a year unfortunately.
(20min delay)