We Take a Look at WineDirect's Dynamic Pricing Tool

Right now there is a WineDirect tool in Beta testing that is available for wineries to try out called "Dynamic Pricing". It lets your club members login to their account on your website and see their club member discount on your wine immediately.

How It Works

Before this tool, club members would not normally only be able to see their discount in the cart or the checkout. Now they will see their discount while shopping, to hopefully be encouraged to buy more while they are still browsing.

How to Get It

You have to opt in to test new beta tools here: https://documentation.vin65.com/News-Release/Early-Adopter-Program

Then, it needs to be turned on. Either:

1. Ask WineGlass Marketing to turn it on for you.
    
2. If you have access to the website settings* go to Settings > Website Settings > Store > General > check the box for Conditional Pricing.
   *We only recommend highly experienced WineDirect users go into the Website Settings as it's an area that can really break your website.

Potential Benefits

Simply put, now your club members see their discounts and theoretically will buy more, and be more satisfied because of it. In a case study by Oliver Hinz and his associates (http://www.ecm.bwl.uni-muenchen.de/publikationen/pdf/price_discr.pdf) its been found that using dynamic pricing, profits can potentially increase by over 20% without lowering customer satisfaction.

This has been a tool that many have wanted for a long time and we're glad WineDirect has added this feature. So far in our testing we've seen positive results and haven't encountered any bugs with it.

Potential Cons

Since Dynamic Pricing is based on your promos in the system, this feature places the discount right in front of the customer as they are browsing your products. It's important to make sure your promos are setup properly.

Run some tests yourself before you setup a promo to be public, and review all of your promos before you just turn this tool on.

Keep in mind, any discount that is setup to automatically discount will start displaying these items online right away if the customer qualifies. If you are using a Promo Code, then the discounts won't appear until the Code has been entered.

Dynamic Pricing is still a Beta feature so that means WineDirect is in the process of testing it and troubleshooting potential problems so don't be surprised if you encounter an unexpected issue.

Net Conclusion

In summary we see this being an effective tool to help you secure an increase in sales and club member satisfaction. When it's out of it's Beta status we could see most wineries wanting to adopt this feature on an ongoing basis and this becoming mainstream. Our recommendation is to try it out.

We are here to assist you...

If you're curious about it, give us a call. WineGlass Marketing can set it up for you. Email us or call us at 707-927-3334 to discuss implementing this feature for your website.