I describe how a hypothetical wine store stops discounting, refocuses on very profitable customers, by sharing the store owner’s passion for wine. The store starts with 1467 customers, it drops 259 customers and turns a financial loss of -$46,374 into a profit of $214,354. However its revenue increases by $300,000. My imaganiery store owner has had a larger discounter open up next door. He has tried to match the prices but has quickly found himself in a hopeless financial position. This book follows him as he creates a business plan and an internet oriented marketing strategy to refocus on the most profitable customers.
My New Book Shows you How to Make More Money, with Fewer Customers, Without Discounting
November 7, 2011 By Leave a Comment
Thought of Opening another Wine Store? Here’s a Financial Model that may help
November 14, 2010 By 3 Comments
Thought of opening another wine store? Here’s a spreadsheet which I’m using to evaluate volume by segment, margin, revenue, costs and profit. It also evaluates marketing promotions.
A Selling Wine Online Financial Model
February 17, 2010 By Leave a Comment
I’ve done a number of financial models looking at the ROI of a online wine store. Here’s my top level calculations for you to put in your own spreadsheet. Wine Revenue = Traffic Volume * Conversion% * Order Value. So the amount of revenue you get depends on the volume times the % who buy times the dollar value. Wine Online Cash flow = Net Revenue less Variable and Fixed Costs…
The Profit of an Online Wine Store: some Financials
February 15, 2010 By Leave a Comment
But here’s the problem, many websites look fantastic and fail to make a return on investment. The frustrated wine retailer then writes off the internet as useless. And yet research shows that 4-6% of a retailer’s business is now over the internet. So let’s do the financial numbers to assess ROI
