How do I check a winery’s wine club membership list and renewals?
Ask for the member list as a report, not a summary, showing join dates, tier, shipment history, renewals and cancellations. Then compare it with the payment records. A club is only an asset if members keep shipping and paying, so look at who stays, who leaves, and why.
A headline membership figure can hide a lot. Ask for the list with each member’s start date, the plan they chose and whether they have skipped or paused. Look at how many joined and how many left in each period. Then ask the seller why people cancel, and whether the reasons are recorded or only remembered.
Tie the list back to the books. Card payments, declined charges and refunds should line up with the member records. Ask how members are billed and who holds the payment details. If a third party handles billing, ask what happens to the account on a change of owner, and whether members would need to sign up again.
Ask how members agreed to hear from the winery, since your first email after closing depends on it. Your lawyer can advise on privacy and transfer of the list. Ask whether discounts, free shipping or perks are promised to long-standing members, and what those cost. If the seller’s personal relationships hold many members, ask for introductions. Check a few memberships by phone with the seller’s permission. Ask what share of members renew after the first shipment, since early drop-off says more than the total. Also ask how the club is promoted and whether that spending would continue.
Key takeaways
- Get the full list, with joins, pauses and cancellations by period.
- Tie member records to payment records before relying on them.
- Ask how members consented, and what perks you inherit.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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