WineXpert New pricing coming June 1 for WE kits

I have been informed by two suppliers that beginning June 1, 2015, WinExpert will force minimum pricing on its distributors. This is just the latest example of the heavy handed tactics employed by that company. I don't know how all you feel about such measures but I resent them. I plan to vote with my wallet and I will boycott WinExpert products unless and until this policy is reversed. I urge others to do the same because this is the only thing that these people will understand. If their sales drop by 30-40% we will find if they are so dictatorial.

I didn't order any of their LE kits this year because of that. With this 'price fixing', their kits aren't very good deals. I'll stick with Cellar Craft and Spagnols. I assume that their fixing of the LE's was an experiment. It must have gone well, and they're now rolling it out to their entire line.

Edit: FWIW, I sent a letter back in the fall to FVW, expressing my displeasure and letting them know that they lost sales from me as a result. I got a very nice response back. But in short, they reminded me that other companies do this (Vinmetrica, as an example) and there isn't much they could do.

I have an idea on why they are doing this. I don't like it but I understand their motivation. I think......

Sounds like only the Eclipse and Island Mist kits are in that play.
They can keep them.....

I'm all for the idea of consumer pressure toward suppliers though I'm afraid it's nearly impossible to get enough people on the same page to make a difference. That being said, if this takes place, I will be looking at other companies to do business with...

Boatboy24 said:

Edit: FWIW, I sent a letter back in the fall to FVW, expressing my displeasure and letting them know that they lost sales from me as a result.

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Jim,
Are you saying WE lost sales because of this or FVW lost sales?
If you are referring to FVW, why take it out on them? Just do as you say and buy a different manufactured kit from them.

wineforfun said:

Jim,
Are you saying WE lost sales because of this or FVW lost sales?
If you are referring to FVW, why take it out on them? Just do as you say and buy a different manufactured kit from them.

Click to expand...

With the exception of the Aglianico from RJS, the LE kits I was interested in were from WE. So I told FVW (and my other frequent supplier) that my normal 3+ order of LE kits last year was down to 1 kit. I wasn't taking anything out on the retailers on purpose, but due to WE's practices, my kit buying was being reduced.

(edit: I did end up doing the Shiraz Viognier, but held off on the others)

I didn't order any WE LR kits either this year but only because the 2 White offerings were rather boring to say the least. I was just looking at FVW pricing on the Showcase kits. Dang, they are not that far behind WE Eclipse prices. Also noticed they Vineco/CC quietly changed the Showcase Chardonnay from WA State to Sonoma, CA……..

Pretty sure we are all bitching about the principle of MAP pricing.

And the fact that we effectively now have a Grape Juice Cartel…...

We are not discussing politics. You are. We are discussing Winexperts pricing policy and disagreeing with it wholeheartedly.

Boatboy24 said:

With the exception of the Aglianico from RJS, the LE kits I was interested in were from WE. So I told FVW (and my other frequent supplier) that my normal 3+ order of LE kits last year was down to 1 kit. I wasn't taking anything out on the retailers on purpose, but due to WE's practices, my kit buying was being reduced.

(edit: I did end up doing the Shiraz Viognier, but held off on the others)

Click to expand...

I gotcha, I thought you meant you were taking it out on FVW on purpose, which wouldn't make sense.

I'd like to see the MAP rules from the WE Distributor. While the company can restrict "minimum ADVERTISED price", I believe they are not allowed to restrict actual sale prices. Hence, a store can sell it for whatever they want at the store.

Where this is relevant is: Just because an internet store can't "advertise" a lower price (or take an order through a website), doesn't mean that you shouldn't be able to call them up and order it at a lower price. I think restrictions on pricing in one-on-one contact between live people would border on illegal price fixing.

In fact, I think companies like AMAZON get around MAP by saying "add the item to your cart in order to see the price".

In any case, for me, shipping is an issue, so I wait for my LHBS to have a 20% off sale, and then pick up a kit.

Richmke you are correct in what you say.

I think LD Carlson is more (or at least as much) responsible for this policy than Winexpert and their corporate overlords. Carlson has been trying to make LHBS more competitive by making on-line retailers less competitive for years - but that makes sense since that is their market.

For my palette, I have preferred RJS and CC to WE products for years so I probably won't order any more WE products.

Richmke:

I'm pretty sure you're right. In fact, IIRC, Label Peelers advertised last year that their 'in store' prices weren't subject to the MAP rules on the LE Kits. They said just add the kit to your cart and choose in-store pickup and you'd see their price. I tried it, but it didn't work. Maybe WE saw that and reprimanded them.

Maybe the retailers need to try a 'loyalty point' program with the points immediately available at checkout. In fact, in an effort to move more WE product, the place a heavy promo to that product line. "Buy an Eclipse kit and all loyalty points earned on that purchase are doubled and instantly available!" The MAP is followed but a discount is applied. We always called that 'gorilla marketing'. That type of a program is strictly under the control of the retailer and WE has no influence. WE can dictate pricing but not individual retailer promotions.

From what I've noticed in my short wine making time is online price + shipping costs pretty much = LHBS retail... The folks at my not so LHBS also realize this...

I did not mean to start a "ca-ca" storm here and certainly not with our neighbors "Up North" whom I admire for many reasons. My understanding is that WE is telling the retailers what they can sell the product for and to me that is up to the retailer. If a retailer for whatever reason wants to sell even below the price he pays, that is his business. There was nothing in the announcement that I read that said WE was raising prices to the retailer. They are dictating where the retailer can price the product. Personally, I think WE is bowing to pressure from retailers who are "trying to make a killing rather than a living" to paraphrase one of our sponsors.

It only has to do with "advertised" price... it can be sold at any price.