The implications for the customer are that you would get 2 more bottles of wine for only $18. $9 each. The implications for Stuart Cellars would be that your profit margin per bottle would be significantly less. They would also in all likelihood be losing money on the additional 2 bottles. In addition, by having such a big discount difference (10%) between and order of 11 bottles versus 12 bottles, Stuart is extending the frequency at which customers will order. 5. Stuart Cellars pricing strategy is to get long time customers that buy in bulk.
By avian a “members” club, they are looking to develop long term exclusive relationships with their customers. They are also looking to go after the “wine connoisseurs”. By doing this, they need to make sure that their product is an absolute top tier product. These types of wine drinkers are more critical of the taste than the average wine drinker. By not providing the absolute best wine, they could not only lose sales due to too high off price, but lose sales based on taste as well. It is tough to enter a market full of very critical consumers. The quality of your product becomes forefront.