Wine Shop At Home is a direct sales company that operates out of California’s famed Napa Valley. Their product line consists of fine wines ranging in a variety of flavours of reds, whites, and even specialty wines.
Their compensation plan is a standard commission based structure where a representative can sell the wines to customers in order to earn a commission. Although the company overall has been doing some big numbers, there are a few limitations that I see which need to be noted…
First off, the training that Wine Show At Home provides to their representatives is lacking tremendously as they as still instructing their representatives to implement traditional based direct sales tactics (i.e. list of friends and family, house parties, etc.) Although this tactic worked very well in the 70s, 80s, and 90s, the marketplace has changed greatly due to the emergence of the internet and constant advancements in technology.
Secondly, their product line consists only of wine which is a major disadvantage because they are only in one industry. There have been many direct sales companies that have gone out of business simply because they were not diversified enough in the marketplace due to that their product line consisted only of a few items.
Lastly, because Wine Shop At Home is a direct sales company their prices are typically much higher than the standard in the marketplace. Although I am sure the products themselves are of high quality, being that we are currently in an economic slump I have a hard time believing that people would be willing to pay over 0 for a bottle of wine.
Wine Shop At Home overall is a great organization however, I feel that they need to drastically improve the training that they are providing to their representatives so that not only the representatives can have more success, but the company as a whole can become more profitable.
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Michael Stead
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