paso roadshow - jim agger - simplifying compliance
TRANSCRIPT
SimplifyingCompliance
Compliance? We’re talking about compliance?
Legal and Legislative Update
Strategies for Getting Compliant
Optimal Compliant Workflow
Legal and Legislative Updates
Wineries can ship to 41 states for offsite sales
WA
OR
CA
NV
ID
WY
MT ND
NE
CO
NM
LA
MO
MNWI
MII
IL INOH
KY
ALGA
FL
NC
VAWV
P
NY
NH
MA
RI
CT
NJ
DC
MD
DE
AZ
AK
HI
VT
UT
SD
IA
AR
TX
TNSC
ME
PA
MS
KS
Restrictions (On-site Purchase Only)
Prohibited
Allowed
OK
Direct Shipping Update Trends
$4.5 BillionTotal DTC
$1.5 BillionDTC Shipments
$2.8B$540M
$900M
Events
Ecommerce
Tasting Room
$270M
Wine Club
Source: Silicon Valley Bank DTC Survey, WineDirect Proprietary Data
30 States with Budget Shortfall in 2013
IA
WA
OR
CANV
ID
WY
MT ND
NE
CO
NM
LLA
MO
MNWI
MI
L INOH
KY
ALGGA
FFL
NC
VAWV
P
NY
NH
MA
RI
CTNJ
DCMD
DE
AZ
AK
HI
VT
UT
SD
AROK
TX
TNSC
ME
PA
MS
KS
DTC Shipping States That Require Common Carrier Licensure
IA
Source: Wine Institute
IL
Now for some good news….
OR
CA
NV
ID
WY
MT ND
CO
NM
LA
MO
WI
IL
G
F
NC
P
NY
AZAR
PA
MA
2013 State Update- Montana and Arkansas
.31% .43%
$50 $25*
Massachusetts (HB 1029)Pending Legislation in 2014
3.5% 2.5%
Pending Legislation in 2014
Okay, so you’re ready to get compliant. What do
you do next?
Real-time order checking
Accurate collection of sales taxes
Tax and shipment reporting
Staying current with rule updates
Obtain licenses where required
All-In
Updated January 2014 Source: WineDirect Proprietary Information
WA
OR
CA
NV
ID
WY
MT ND
NE
CO
NM
LA
MO
MNWI
MII
IL INOH
KY
ALGA
FL
NC
VAWV
P
NY
NH
MA
RI
CT
NJ
DC
MD
DE
AZ
AK
HI
VT
UT
SD
IA
AR
TX
TNSC
ME
PA
MS
KS
OK• 88% of US Consumption• Total Cost: approximately
$7,908• Reports Required: Up to
780 filings per year.
Maximum Opportunity
OR
NV
ID
WY
MT ND
NE
NM
LA
WI
P
AZAR
PA
2.90%
18.07% 1.79%
4.83%
1.51%
4.34%2.63%
2.65%
8.02%
2.19%
8.30%
0.27%
2.26%1.54%
0.54%
4.37%2.76%
“Free” States
• 70.3% of US Consumption• Total Cost: approximately
$2,888 per year• Reports Required: Up to
312 filings per year.
Updated January 2014 Source: WineDirect Proprietary Information
Cost Conscious
MT
NE
LA
WI
P
AZAR
PA
2.90%
18.07% 1.79%
4.83%
1.51%
4.34% 2.65%
8.02%
8.30%
0.46%
0.45% 2.76%
0.12%
0.47%
0.11%
1.54%
“Free” States
2.26%
0.54%
1.71%
1.43%
• 62.2% of US Consumption• Total Cost: approximately
$1,350 per year• Reports Required: Up to
348 filings per year.
Updated January 2014 Source: WineDirect Proprietary Information
0.27%
Licensing Strategies
Cost Conscious•62%
of consumers
• 348 reports• $1,350/ year
Maximum Opportunity•70%
of consumers
• 312 reports• $2,888/year
All-In•88%
of consumers
• 780 reports• $7,908/ year
Source: WineDirect Proprietary Information
Real-time order checking
Accurate collection of sales taxes
Tax and shipment reporting
Staying current with rule updates
Obtain licenses where required
Introducing the Optimum
Optimal Compliant Workflow
Common DTC Workflow
Order System
Compliance
Fulfillment
Compliant Orders
Tax Compliance Check
Orders Tracking
Optimized DTC Workflow
Vin65Order Management
POS
FulfillmentSystem
WineDirectCompliance
software
Tax Rates
Compliant Y/N?
Tracking Compliant Orders
Club
Tele-sales
Tracking
Resources
