Are you considering venturing into the manufacture of cheap wines? If the answer is ‘yes’, then there are three key things that you will need to have, in order to be successful in that venture. In today’s blog post, we will be looking at those three things that are necessary in the manufacture of cheap wines.
Firstly, in order to be successful in the manufacture of cheap wines, you need to have cheap raw materials. Thus, when coming up with the manufacturing formula for your wine, you have to ask yourself the question as to what raw material to base it on, for it to be cheap. It can, for instance, be very difficult for you to craft a wine out of high quality grapes, and expect it to be a cheap wine in the real sense of the word. A better alternative may be something like plums (whereby you end up with a plum wine) though in the final analysis, you may realize that high quality plums are actually costlier than low quality grapes… Ultimately, if you can’t figure out a source of a suitable cheap fruit for wine making purposes, you may as well say goodbye to your dreams of manufacturing cheap wines.
Secondly, in order to be successful in the manufacture of cheap wines, you need to have cost-effective manufacturing and distribution systems. It is possible to have a cheap raw material, but still end up with wine that is expensive due to the manufacturing and distribution system used.
Thirdly, in order to be successful in the manufacture of cheap wines, you need to have access to cheap labor, cheap power, cheap land and cheap capital. These are the basic factors of production. It is in pursuit of cheap labor that you see people opting to outsource their production operations to cheaper locations, where land is often also very cheap. Access to cheap capital can also be tricky, seeing that you have to borrow from banks that often demand usurious interests. Access to cheap power is another issue: especially keeping in mind that nations where labor is cheap unfortunately tend to be technologically unsophisticated places, where power is very costly. But if you are diligent in your search for cheap labor, cheap power, cheap land and cheap capital, you should eventually be able to find the best possible compromise.