Wine Clubs: The Importance of Price Alternatives

In the thriving world of wineries, creating an appealing wine club isn't just about the selection of wines; it's also about the way you present your pricing. At Highway29 Creative, we take inspiration from behavioral economics, in this case specifically the work of Dan Ariely, to help wineries understand and leverage the importance of pricing alternatives.

The Power of Alternatives in Pricing

Dan Ariely's research illustrates how the presentation of alternatives influences consumer choices. This principle can be a powerful tool for wineries looking to enhance their wine club memberships. Much like creating a well-balanced wine by blending different grape varieties, offering pricing alternatives allows potential members to create their preferred blend of membership benefits.

The 'Decoy'

What is a Decoy? A decoy is a pricing strategy that involves offering an option that is not meant to be chosen but influences customers' perceptions of other options. Think of offering three wines for a tasting. The decoy is like a wine that's good but not great, meant to enhance the perceived value of the other, superior options. By including a membership tier that's either slightly overpriced or under-featured, you can make other options seem more appealing.

Takeaway: Presenting different pricing options side-by-side allows potential members to compare and find the best fit for their preferences and budget.

Takeaway: Including a ‘decoy’ option can steer customers towards the choice you prefer. This option is priced to make another one look more appealing, guiding the customer's decision.

The Psychology of Pricing: Immediate Value

Understanding the psychological factors behind pricing can lead to a more effective strategy for your wine club. Immediate value refers to the perceived benefit that customers feel they're receiving at the moment of purchase. The perception of immediate value is a great tool to help people make a decision to buy.

A different way to think of this is like harvesting grapes. It's akin to reaping the reward of a well-tended vineyard at harvest time. Offering a small discount for prepayment for a whole year can make members feel they are getting more value upfront, like tasting the fruit right from the vine.

Takeaway: Experiment with offering a percentage off for those who commit to a yearly membership, emphasizing the savings they'll enjoy immediately. Or, look at other ways to provide immediate value. 

Implementing a Customer-Centric Pricing Strategy

Aligning pricing strategies with the needs and wants of the target audience is key. This strategy aligns pricing with the values and needs of the customers, focusing on what they truly care about. Just as understanding soil and environment helps in growing the best grapes, understanding your customers helps in cultivating the best pricing strategy.

Think about how you can align your pricing presentation with the extra value your customers desire (exclusive tastings, events, etc.). This is a great start to presenting your pricing in a way that resonates with them. 

Takeaway: Try presenting the club pricing with other value-added options that come with membership, such as exclusive experiences, events, or products to enhance the perceived value of membership. In most cases, these are already on the page, but try repeating them right next to the wine, at the place of the purchase decision. This way there is clarity that they’re getting more for their dollar than a great discount on great wine. 

Unlock the Potential of Your Wine Club with Highway29 Creative

At Highway29 Creative, we believe in translating complex principles like behavioral economics into actionable insights for the wine industry. Our expertise can help you with marketing that not only appeals to your target market but also drives membership.

Ready to redefine your wine club pricing? Let's discuss how we can help during a complimentary 30-minute strategic consult with a director of strategy. Just fill in the contact form or email us.