The art of selling wine is one of the most effective ways to obtain a higher profit margin.
Profit margins on alcohol are significantly higher than profit margins on food, especially if your restaurant uses high quality ingredients. According to Kevin Moll, CEO of the National Food Service Advisers, over at an article on Chron, the average food cost for restaurant menu items are between 38% and 42% of menu price.
Of course, if you own a restaurant that sells alcohol, you’re probably fully aware of how the profit margins break down. The reason we’re here today is to talk about how you can sell more wine (and therefore make more money). Let’s take a look at three different ways you can increase your sales.
Limited Time Wine Specials
Whether or not you always have a wine available, highlighting a specific vintage for a limited period of time is a good way to move more product, especially when offering it at slightly reduced rate. Listing it as your “Wine of the Month” or “Featured Wine” gives the impression that it’s more exclusive or higher quality – even if it isn’t.
If you have excess inventory, this strategy can be a great way to clear some of it out.
Understand Wine Psychology
Here’s a few examples of how understanding a little psychology can increase your sales.
- Serve wine in larger glasses. According to a paper in BMC Public Health, highlighted by Scientific American, and featured in The Cut, a study conducted by behavioral scientists at the University of Cambridge discovered that patrons were spending 10% more on wine when they were being served in larger glasses. The reason? Because the same pour looks smaller in a larger glass than in a smaller one.
- Consider playing classical music. According to The Guardian, research indicates that classical music will increases sales for expensive wines.
- When thinking about which bottles to show off, take a look at the wine label. According to a study from Real Simple, when showed a selection of a dozen wines (6 featuring graphic labels and 6 featuring traditional labels), subjects could remember an average 94% of bottles with graphic wine labels, compared to 68% with traditional labels.
Promote Wine Digitally With CoGoBuzz
With CoGoBuzz, your customers will start thinking about what wine they’re going to order, before they even sit down, making it easier for you to get their wine on the table as soon as possible. It’s all thanks to the power of mobile engagement – and because customers can’t help but look at their phones.
Leveraging advanced WiFi, SMS, and Email solutions, CoGoBuzz promotes your restaurant’s wine specials, drink menus, deals, and more – directly to customer mobile devices. It all happens automatically for your customers with a quick one-time login via social media, Email, or phone number. Check out the rest of our website to learn more about the many benefits of CoGoBuzz!
Have any tips on selling wine? Let us know in the comments!