So you want to buy a liquor store? We’ve got you.
Liquor stores are very easy to run. They essentially run themselves if you have great employees you can depend on. Investing in this industry is possibly one of the easiest ways to make great money for passive ownership.
1. People Drink When They Are Happy, When They Are Sad, and When They Are Thirsty; It’s Recession Proof
How many times have you heard your buddy ask you, “Hey what do you want from the liquor store?” The answer is probably countless times, but liquor is just one of those necessities per say. People are always drinking. Whether it is at the house, BBQ, out to dinner, etc. Some people need this stuff, and where are they going to get it? Oh that’s right, the neighborhood liquor store that YOU own!
2. Basic Retail Concept
There is absolutely no algorithm needed here to make your store pop. It doesn’t matter if you’re a retail whiz or not. Throw the product on the shelves and people will buy it regardless of how it is represented. Although, you should organize it by wine, beer, liquor. It just makes it a bit more seamless transaction with the customer.
3. Prices are Relatively Fixed
Whether you keep your margins inside the store the same, or you choose to increase them; people will still buy from you! You will establish a loyal clientele base and it won’t matter to them how much they pay. All they want is your liquor! Keeping these prices relatively the same will keep repeat customers. It is such a simple business, why didn’t you invest earlier?
4. High Margin Business
You buy your liquor, beer, and wine at a certain cost. Now you hike up the price very minimal. Liquor stores average a margin of around 25-27%. This is a great number to charge on top of your cost. This will allow you to make tons of money, but also keep customer traffic steady inside your store. You can charge a relatively inexpensive amount, but still increase your cash flow exponentially.
5. Few Employees Required
One of the biggest worries for store owners is employees. Here in the liquor business, you do not have to worry! Depending on the size of the store, the most you will ever need is 3-6 employees. 3 being a good amount for a small store, and 6 being for a larger store. As time moves on, you will figure out a good number of employees needed to successfully run the store, while keeping labor costs to a minimum.
6. Inventory —> Tax Write Off
You now own your own business. So you get yourself a business credit card and put all your expenses on there. Guess what? It is all a tax write off. You buy your inventory on it. This will be one of your biggest expenses to the business, but one of your greatest assets as well. You can pretty much write everything off. The utilities, bank charges, insurance, new coolers, inventory, etc.
7. Cash Business with Low Barriers of Entry
Is there anything better than cash? Most people would say no. Majority of your business will be cash. Owning a liquor store is a very lucrative business. Lets be honest, it does cost a bit of money to buy a store depending on the size, but they are SIMPLE to run. Barriers of entry are extremely low! There isn’t a huge start up cost because you have the inventory already, and you have an established customer base. You can get into a store with absolutely no liquor experience and run it extremely well and profitable. We see it done here all the time.
8. Did we Mention People Like to Drink?
Oh, I am sure we did, but look at it exactly from that perspective. People drink all the time! Whether they do it occasionally with that expensive bottle of whiskey, or the repeat customer who buys a case of Bud Light. This business constantly increases in sales, which means more money in your pocket. People will never get tired of beer, liquor, and wine. As stated before, its a necessity for our society, as we see it everyday.
Don’t wait, get in touch with us now! We sell more liquor stores than any other brokerage firm in Colorado! We have the knowledge and expertise to help guide you into your next business endeavor. Contact us for more information, or see our liquor stores we have available here.