Financial Terminology
What is the amount of money a winery takes in?
REVENUE
What do you call wine sales to restaurants?
ON-PREMISE
What is the standard discount wineries give to their distributors?
50%
How many wineries are there in the USA?
10,000
What percentage of revenue might be a good starting point for a marketing budget?
1-3%
What does COG stand for?
COST OF GOODS
What do you call wine sales to retail stores?
OFF-PREMISE
What is the standard discount given to retailers and restaurants?
33%
How many distributors are there in the USA?
ABOUT 200
What percentage of Net profit would be a good reference for marketing budgets?
10-15%
What is the difference between Revenue and COG?
GROSS PROFIT
This is another term for On-Premise that refers to Hotels, restaurants, and catering.
HORECA
What is the standard discount in a tasting room?
0%
How has the number of distributors changed in the past 20 years?
DECREASED (A LOT)
Which wineries are best suited for a "dollars per case" marketing budget?
LARGE WINERIES
What is net profit?
THE DIFFERENCE BETWEEN REVENUE AND ALL OPERATING COSTS.
What constitutes “national” accounts?
HOTEL AND RESTAURANT CHAINS
What is the industry term for the price given to distributors?
FOB or FREIGHT ON BOARD
How many products does a major distributor represent?
OVER 20,000
What is ROI?
RETURN ON INVESTMENT
What is EBITDA stand for?
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION.
What do you call local accounts managed by the winery?
HOUSE ACCOUNTS
What restaurant program often gets a big discount?
A BY-THE-GLASS (BTG) PROGRAM.
How long is the average sales call?
15 MINUTES
Name three things of value you can measure to evaluate your ROI?
SALES, MEDIA ATTENTION, VISITOR TRAFFIC