🍇 Projections
The numbers below are based on industry standard wine club sizes from small to medium, and not comparing to the large clubs. We’ve broken this down to three examples based on levels of success.
Note: based on an average of $25 per bottle x 3 bottles per member, per month. Keep in mind packages are for 2, 4 or 6 bottles, so averaging at 3 is less than the mid-package. Further, wine prices will vary, though went with a lower-end wine cost for this example.
- Upper-Small Sized Club (1,000 members)
- Total Revenue: $75,000 per month
- Breakdown:
- Vendor: $37,500 (50% to winery/vendor)
- Technology Partner Profit: $7,500 (10% profit share)
- Marketing Partner Profit: $7,500 (10% profit share)
- Influencer Partner Profit: $7,500 (10% profit share)
- Paid Media, Promotional: $7,500 (10% budget)
- *Operational Overhead: $7,500 (10% * includes legal, hosting, tech and customer support)
- Lower Mid-Sized Club (3,000 members)
- Total Revenue: $225,000 per month
- Breakdown:
- Vendor: $112,500 (50% to winery/vendor)
- Technology Partner Profit: $22,500 (10% profit share)
- Marketing Partner Profit: $22,500 (10% profit share)
- Influencer Partner Profit: $22,500 (10% profit share)
- Paid Media, Promotional: $22,500 (10% budget)
- * Operational Overhead: $22,500 (10% * includes legal, expandable cloud hosting, tech and customer support)
- Upper Mid-Sized Club (5,000 members)
- Total Revenue: $375,000 per month
- Breakdown:
- Vendor: $187,500 (50% to winery/vendor)
- Technology Partner Profit: $56,250 (15% profit share)
- Marketing Partner Profit: $56,250 (15% profit share)
- Influencer Partner Profit: $37,500 (10% profit share)
- * Operational Overhead: $37,500 (10% * includes legal, expandable cloud hosting, tech and customer support)
Notice that this upper level of success does not have 10% for promotion, giving partners more profit margin. We will be flexible on the budget, agreeing on what needs to be spent on promotional, overhead, etc. (at every level of our success) and paying the rest to partners on a monthly basis, as agreed upon by the partners.
These numbers do not reflect Premium Membership Upgrade revenues, or other sources that may be added to the business model.
EXIT STRATEGY: It’s important to note that even getting the club up to a consistent 1,000 active monthly members opens the company up to the opportunity of being sold for multiple 7 to 8 figures. This number obviously grows with the success of the membership. With the proper promotion and management, Grapes for Good has real potential to become a high-value property.