3 Wine Sales Mistakes to Avoid in 2023

When it comes to hitting your 2023 sales goals , it is just as important to avoid mistakes as to execute the right strategy. The great NBA coach Pat Riley famously said, “The best way to win is not to lose.” In other words, figure out what is causing you to lose and stop doing it.

With this in mind, here are 3 of the biggest mistakes to AVOID in 2023:

Mistake #1: Paying people to “manage” distributors

Let me be very clear from the start. There’s a big difference between “working with” a distributor and “managing” a distributor. The idea that any wine or spirits company would have people on their payroll who “manage” distributors is absurd, foolhardy, and irresponsible to the owners and shareholders of the business.?

I see so much denial around the statement I’m about to make, but it is the absolute truth:

The role of the distributor has changed.?

The burden of building new sales & distribution has shifted from the distributor to the supplier thanks to simple math: too many brands and too few distributors. It's a matter of capability, not motivation.

Brands would be wise to re-calibrate their expectations of what distributors can (and can’t) do and adjust themselves accordingly.?

The “modern” sales territory professional recognizes that they need to do most of the work themselves. They start with realistic expectations and work up from there. They understand the limitations of what the distributor can do and do not waste time trying to get them to behave differently.

No amount of education or “motivation” will change this fact. If any part of your 2023 sales plan depends on a distributor doing something, your sales plan is already doomed to failure.

And you can forget all about creating incentives for the distributors as an option. Add this strategy to the growing list of things that used to work but no longer do. When spending (or wasting) money on distributor incentives, you should question this practice hard .?

Crushing your sales goals in the modern environment demands realistic expectations of what you can expect from distributors .?

If you have not yet seen my list of 5 things a distributor won’t say to your face , please take 5 minutes to read it. There is a reason this article received over 10,000 views on Linkedin!

Business owners hear me clearly: hire sales pros who understand the new environment and know how to prosper despite it. Purge your ranks (and refuse to hire) anyone who depends too much on distributors.

Mistake #2: Selling "transactionally"

The wine & spirits industry has some of the worst salespeople on the planet. Exceptions abound, to be sure. But most people in a wine/spirits sales role don’t know the first thing about selling or how to sell. Let me explain.

The “transactional” way of selling, which went out of fashion in the 1950s, looks something like this:

1. The seller does most of the talking
2. The pitch is delivered “cold” to a person with no (or very little) prior knowledge of you or your company, or your products.
3. The seller talks mostly about the features and benefits of the product
4. Overcoming objections and closing skills are highly valued.

To those who understand, no explanation is needed. To those who lack understanding, no explanation will suffice. But I’m going to try anyway:

Selling is not about persuasion. It’s rarely even about the product. It’s about bringing real value to the business relationship. It’s about empathy and patience, and respecting the customer journey.

“Professional” selling is about solving business problems. If the seller’s focus is on the products they need to sell instead of how their products benefit the customers' ability to surprise and delight their customers, they will struggle to make an enduring impact on the business.

Selling transactionally is not only outdated and offensive, but it is also by far the least effective. If you feel you need a mindset adjustment, I highly recommend Daniel Pink’s book, To Sell is Human . Follow that up with Mastering the Complex Sale by Jeff Thull.?

Don’t be the Rip Van Winkle of the sales profession. Wake up and join the ranks of the “modern” salesperson.

Mistake #3: Looking backward instead of forward

Most of the usual metrics we use to monitor sales success are like driving using a rear-view mirror. These include shipments, depletions, and accounts sold. They can tell you a lot about where you’ve been, but there are two glaring shortcomings:

They cannot tell you about the quality of your distribution

1. They won’t tell you where the sales growth you need will come from

Quality of distribution has to do with the following:

• Having the right products in the right places (a.k.a. “key account targeting ”)
• Respecting and leveraging the 80/20 Rule because not all accounts are equal (not even close)
• Achieving placement in a manner that makes them “sticky.”
• Avoiding short-term sales prompted by incentives (a.k.a. “churn ”)

This is why “modern” metrics include metrics like these:

• Velocity (sales per POD)
• POD against target accounts
• Retention (how long a POD stays in place)
• Identifying “at-risk” placements

Once you start incorporating more forward-looking metrics, you can predict with more accuracy how much you can grow your sales and where you will find those new PODS and depletions. Much of this involves researching and identifying the richest targets in each market and then narrowing your focus of sales activity and investment to those targets.

Get good at measuring (and assigning a value) the potential of markets, territories, and accounts, and your improved sales results will follow.

If any of this intrigues you, I want to invite you to avail yourself of two brand-new resources:

Download our new eBook called “Fast Start Guide for 2023,” which is FULL of ideas about how to crush your sales goals.

Register to attend our upcoming training seminar , "Getting a Fast Start on your 2023 Sales Goals.”

As always, I welcome any comments (or questions) you have in the comments section below.