Prioritize the Customer: The 3-Tier System and the Pricing Problem
I get it — the 3-tier system is complex. Between producers, distributors, and retailers, there are a lot of hands in the pot, making it difficult to keep wine pricing competitive. But here’s the thing: if we don’t prioritize the customer within the wine category, we’re risking more than just a single sale. We’re risking the future of wine itself.
The Danger of Pricing People Out
When wine is consistently priced beyond other beverages people are buying — craft cocktails, RTDs, and even premium non-alcoholic options — it sends a clear message: wine isn’t worth it.
Consumers aren’t just turning away from overpriced glasses or bottles; they’re turning away from wine altogether. And when they leave, they’re not just leaving your program — they’re leaving the category. That’s a much harder customer to win back.
Affordable Options Build Loyalty
This doesn’t mean you shouldn’t offer premium wines or splurge-worthy bottles. Those have their place. But if your wine program doesn’t include affordable, high-quality options, you’re alienating a huge portion of your audience.
Customers want to feel like their money is well spent. They want to discover something great without breaking the bank. When you give them that — when you balance splurges with approachable options — you’re building loyalty. You’re creating customers who feel valued and understood, who trust you to deliver quality no matter their budget.
The 3-Tier Challenge
Yes, the 3-tier system makes it harder to keep wine prices competitive. Markups stack up quickly, and by the time a bottle reaches the consumer, the price can feel disproportionate to its quality.
But here’s the reality: this isn’t the customer’s problem to solve. It’s ours. It’s on us to curate a program that delivers value at every price point, despite the challenges of the system.
Strategies for a Stronger Wine Program
Focus on Quality-to-Price Ratio (QPR)
Seek out wines that over-deliver for their price. There are plenty of small producers, lesser-known regions, and unique varietals that offer incredible value without the inflated cost of big-name labels.Balance the List
Include a range of options, from affordable everyday wines to premium splurges. Make sure every price point feels justified by what’s in the glass.Educate Your Staff
A knowledgeable team can guide customers to the best options for their preferences and budget. When staff can confidently recommend a $10 glass that tastes like a $20 pour, everyone wins.Create Opportunities for Exploration
Offer wine flights, tastings, or “staff picks” that highlight affordable, high-quality options. This encourages customers to try new things and builds trust in your program.Think Beyond Profit Margins
Prioritize the customer experience. A strong wine program isn’t just about maximizing per-glass profit; it’s about creating a loyal base of repeat customers who trust your selections.
The Bottom Line
Pricing wine beyond what customers feel is reasonable doesn’t just hurt your wine program — it hurts the entire category. If we want to keep people engaged with wine, we need to offer options that feel approachable, exciting, and worth their hard-earned money.
So, yes, offer splurge-worthy wines. But make sure your beverage program — and especially your wine category — is well cared for by prioritizing affordability, quality, and customer trust. Because when you take care of the customer, they’ll take care of you in return.
