Issue link: http://winesandvines.uberflip.com/i/417249
70 p r a c t i c a l w i n e r y & v i n e ya r d d e c e M B e r 2 0 1 4 w i n e m a r k e t i n g C hoosing your words carefully and understanding how to ma- nipulate a room full of people can go a long way, but some- times strong interpersonal skills are not enough. Convincing retailers to carry your wine(s) means fielding countless questions and overcoming reservations about your brand. Being able to manage objections in a sales meeting is a skill that is absolutely necessary in the beverage industry. Some major objections that you are bound to come up against will be your bottle price, the retailer 's resistance to change, their trust in you as a supplier and your wine's success, any promises they have made with other brands and their need to con- sult with the rest of the team before taking on your wine(s). Let's take a look at how you can plan ahead and be prepared to handle any situation: Price What your retailer might say: "Similar compet- ing brands are selling for less." Or, "Your bottle price is too high. I don't think we can make money on your brand." You are guaranteed to come up against retailers who need help to justify the price of your wines, and you should be ready to negotiate, no matter what. Many retailers will say that price is a factor even when they are ready to sign you on, just to see if you will drop your price. Plan your strategy before you go into your meeting. Visit your retailer 's top stores, look at your competition's shelf- prices and price your brands accordingly. You want to go in with a strong offer that you know is competitive, but also gives you room to negotiate. If they want you to drop your prices, then try and negotiate more stores, premium shelf space, better credit terms or promotional opportunities. Know your bottom line. If you cannot af- ford to supply your wines for their offer price, then walk away. Resistance to change What your retailer might say: "We do not sell much of your category, so we will have to pass." Start by sharing research you have done related to the growth of your category. Talk about how the trend is developing, give them a look at how the industry has performed in the past five years and proj- ect numbers that show a healthy future for your project. As you build your case, mention your competition and give rea- sons why your brand is better positioned to succeed. What your retailer might say: "That rack is reserved for XYZ distributor, and I am locked into their program for the next 12 months." When you try to negotiate good shelf space, sometimes you will come up against road blocks that seem like they might be impossible to overcome. A retailer's prime real estate is usually reserved for their key suppliers, and it is hard to convince them that your wine is worth the risk. See if they are willing to give you alter- native shelf space where you think can suc- ceed in showcasing your brand. Ask them if they are open to giving you the chance to prove yourself. Do not over-reach, but if you are confident and have the resources to offer good support programs, then tell them that you think you can outsell the distributor's wines and earn your spot on their top shelf. Keep up communication lines. Asking for up-to-date depletion reports and pro- viding solid support programs will prove to your retailer that you are dedicated to making your wine worth their top retail spot. What the retailer might say: "I can only replace your brand with XYZ brand, and I still have stock left to sell." If this is their only objection, then you are in a good place to negotiate. Ask the retailer about how long they have been carrying the other brand, what kind of support programs they are offering and when the retailer thinks that stock will be fully depleted. If they are willing to give you the information, then you can give them solutions to their problems. Once they start talking about the com- petition's lack of dedication, give them your top support programs (because if the retailer is willing to drop the brand and still has stock that they can't get rid of, then you can guarantee that the brand is not providing enough support to make the retailer happy). Reaffirm your commitment to making your brand a category leader and be ready to field any questions they have about your POS and merchandising support programs. Ask for a follow-up meeting that matches their estimated timeline and promise to come back with an offer they will like. Follow up with a phone call after your first meeting, thank them for their time and visit them at their shop around the date of your follow up to confirm your meeting. Trust issues What the retailer might say: "I do not believe your wine will succeed in our market." Even if you are convinced that the re- tailer's market is perfect for your wines, making them see your reasoning might be more difficult than you first believed. When a retailer tells you that your wine is not right for them, ask them for their reasons and write down their feedback. Go over all of your market research and try and show them otherwise. Sometimes all it takes is a simple reaffirmation of your market position and targeted marketing. If you cannot convince them that your wine will succeed, then request a follow- up meeting and promise to come back with something really special. Go home, research every aspect of their objections and prepare a killer presentation that will not be rejected the second time. Zach Milne-Haverty, Beverage Trade Network BY Overcoming 10 objections from beverage retailers C Be ready to answer objections when meeting with retailers about carrying your wine.