Product differentiation, by itself, doesn't sell your product - it simply reduces your amount of at-risk inventory, and strengthens your bottom line. Knowing the markets of your wines and maintaining inventory balance go hand-in-hand.

For example, if you sell an average of twelve to fifteen bottles of premier cru white burgundy per year, remember this when the distributor wants you to purchase a case of Meursault-Charmes. Given your current stock of twelve bottles, it will probably take you a couple of years to sell this wine. It's simply not worth tying up that amount of cash, especially on a single label...

​

read more in The Art and Science of Wine Retail