One of the most frequently asked questions I get is “Will Millennials spend the money on a $50 bottle of wine?” Ok, sometimes the price changes, but I’d have to say I answer this at least 2-3 times a week. The answer is YES, WE WILL. But in order to spend more money than we normally do on wine (or ANYTHING) there must be a reason for doing so.
This spring, I compiled the data from a survey I conducted online – some of the results from that survey I included in my May 5th post, Where Millennials Are Buying Wine. I asked over 100 Millennials (mainly residing in Southern California) questions about their wine buying habits. None of the answers were a big surprise to me, but to many people who are not members of the Millennial Generation, the answers are a real wake-up call.
First we need to know what Millennials normally spend on wine. From the research based on the informal online survey a baseline was established in terms of the average amount on money respondents spend on a bottle of wine.
Almost 60% of respondents spend between $11-$20 on average on a bottle of wine, so we have our baseline. According to survey results, giving wine as a gift is one of the main reasons the survey respondents buy wine in the first place (these results to be posted soon). I know from experience and observation that we tend to spend more money on a bottle of wine when we give it as a gift – and so the question was posed: Just how much are we willing to spend on a bottle of wine – in any circumstance – including as a gift?
Most of us are actually happy to pay $50 and above for a bottle of wine as a gift. Two thirds of us are willing to go above our typical price range for a gift. So what does this mean in terms of increasing sales among Millennials?
GIVE US A REASON
Seriously. If you are in the position of selling wine to a Millennial, and you get the feeling that it may be more than this young person is comfortable spending on themselves – suggest it as a gift. Mother’s Day, Father’s Day, Hostess Gift, Birthday Present, Wedding Gift – help them find a reason to spend more money on your wine. I’ve mentioned this before in the April 3rd post, along with a few suggestions on how to engage young people and build a relationship with them – feel free to take a look and do some brushing up.
Now that the numbers are in, let’s see what we can make happen.
Have you tried this approach with success? Without success? Are you planning to now? If you have a related experience you’d like to share with other readers, please feel free to tell us about it in the comments section. We can all learn from what you are doing.