– [Voiceover] Jonathan asks, “I import wines from Italy and sell via e-comm and through distributors. I’m currently focusing on
obtaining new distribution and have fallen behind on the e-comm side. Question: What percentage of my time should be split between
each side of the business, and what’s a good way to balance the two?” You know, Jonathan, it’s interesting. I’m trying to give a general answer to the whole market, but I
know your business so well. When you’re importing, I don’t
know what state you’re in, but when you’re doing e-commerce, are you selling to the end consumer? Because you can’t do that
in New Jersey or New York. Are you in a state- He’s in California, and Kermit Lynch, I think, does do that, so I think he can. I think in California,
I was about to say that, thanks, India. In California, ’cause
Kermit Lynch does that, you’re able to actually
sell to the consumer and also sell to distributors. You know, to me, if you
can sell e-commerce 100%, you’re no dope. You know that you’re making 50 cents more on every dollar by selling that way than selling to distributors, but what you know is you’re not that big, and you’re not necessarily
a retailer by trade, and it takes a lot of money and skill to be able to be a good
retailer to sell enough, where the distributors are
giving you the buying power. So my strategy for you is- Now, I’m giving you as
black and white a strategy as I’ve given on this show’s history. 80% to the distributors, 20% of your time, energy, and money to the consumers. Once you get that established, you spend every minute
to turn that into 70/30, 60/40, 50/50, 60/40, 70/30, 80/20, 90/10, maybe 80/20, right? Because you wanna get some restaurants and key retailers to bring
some awareness to it. And for everybody who’s watching, the reason I’m giving him that advice is he just makes more money
if he sells it direct. He’s also far more in control, where you sell to distributors, they’re maybe giving a deal to a retailer, that retail sells it cheap,
and that all of a sudden screws up the pricing in the market. So, that’s the answer. By the way, before you’re
done editing here, DRock,

should brick and mortar
stores be paying attention to over the next 12 to 18 months?” – Joe, that’s a great question. You know, for me a lot of
people have been talking about the second screen
situation with television. People watching TV with their phone. And the funny part is they refer to this as the second screen. I think we’re about,
probably about there now, but this is very much the first screen and that’s the second screen. And we’ll get into that
on a different show. That was kind of a little gateway drug for somebody if they
want to get on the show. That would be a good question to ask. The trend in retail for me is kind of now the second
screen shopping opportunity. What I mean by that is, this, your eyes, are the first screen, what you’re actually looking at. But think about this. One of things that caught
my mind a few months ago was I was in a supermarket
and I watched somebody go from one aisle to the other, and the whole time, she was. Sorry, DRock. She was shopping and she was doing this and she went around the, sorry, India, and she went around the end cap. Now, look, brands pay a crap-load of money to get those end caps, or to have to have the hottest
product in the world going. But usually at big
stores, big supermarkets, big-box stores, they’re
paying for that positioning ’cause it’s the best position
in the store, those end caps. And so the second screen
shopping opportunity is really, really fascinating to me. Geolocated. Beacons in the store. You’re in the store,
you’re shopping about. You’re getting messaging. I mean, there’s a lot of people who don’t want to be
annoyed on their phone, but I’m sure plenty of people, when they’re in Best
Buy or Target or Costco or Albertsons or Wal-Mart, wouldn’t mind getting a quick
little text or notification, or, if they’re in their Twitter stream, they’re using that
geolocated data to understand to push a tweet. You’re in Wal-Mart; you
get a tweet from Wal-Mart that’s telling you there’s this deal and if you click this
button, scan it, Apple Pay. Second screen shopping opportunities. One of the big things I’m
thinking about for Wine Library is I’m kind of getting a little
flirty with the wine world. more and more. I’m kind of inching back in slow. Steve loves it. Show Steve’s happiness of a face. As I’m inching and
thinking more about wine, I’m starting to rethink about the store and the thought of walking
in and getting content and paying for wines across
the board at the store at a lower price if you
have the app at register. Just, second screen
shopping is a very big deal.