How to use data to decide which wines to buy
Buying wine based on intuition creates stock accumulation. Buying with data creates rotation, margin and a list that evolves.
Contents
- 1.Why intuition isn't enough for buying wine
- 2.5 data points to check before every purchase
- 3.How to analyse your current list's performance
- 4.Entry criteria for new references
- 5.How much to buy: the optimal stock rule
- 6.The data-driven purchasing cycle
1. Why intuition isn't enough for buying wine
Purchasing decisions are usually based on fairs, distributors and inertia.
Fairs generate emotional purchases.
The distributor prioritizes their catalogue, not your list.
Inertia breeds complacency.
How many of your last 10 new references are still on the list and rotating?
2. 5 data points to check before every purchase
Rotation per reference: fewer than 2 units/month probably doesn't justify reorder.
Margin per reference: absolute margin in euros, not just %.
Current stock: don't buy more than you can sell in 60-90 days.
Sales trend: is it going up or down?
List gaps: purchases should fill gaps, not duplicate.
3. How to analyse your current list's performance
Stars (high rotation + high margin): protect them.
Cash cows (high rotation + low margin): optimize pricing.
Potential (low rotation + high margin): investigate why they don't rotate.
Deadweight (low rotation + low margin): candidates for removal.
Is your wine list performing as it should?
We'll analyse your list and show you concrete improvement opportunities in margin, rotation and average ticket.
4. Entry criteria for new references
What function does it serve?
Which reference does it replace? 'One in, one out' rule.
What margin does it offer?
Maximum 6-12 initial units.
Can the team sell it?
Does it pair with the current cuisine?
5. How much to buy: the optimal stock rule
New reference: maximum 6-12 units.
Established (8+ units/month): stock for 60-90 days.
Star (15+ units/month): automatic monthly deliveries.
Slow (< 3 units/month): maximum 30-day stock.
6. The data-driven purchasing cycle
Week 1: review previous month's scorecard.
Week 2: review stock and rotation.
Week 3: place orders based on data.
Week 4: receive, shelve and brief the team.
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