Since 2010 I’ve been investing in real estate in Pueblo, Colorado and when a commercial building with retail on the ground floor and multifamily residential on the second floor was listed for sale I went to take a look. Instead, the owner accepted my offer…..hey, that’s great newwwwzzz…shit. Since taking ownership of the store I’ve learned a few things about the liquor business that might surprise you. Inventory is expensive and margins are thin, managing inventory and cash flow is extraordinarily difficult and SKU level demand is nearly impossible to forecast accurately. proud owner of a liquor license and a terrific selection of craft beers, pinot noirs and small batch bourbons….among many other standard liquor store offerings. I fully expected a counter-offer that wasn’t sufficiently attractive, allowing me to walk away and go back to business as usual. Retail liquor, at least in Colorado, is a fascinating business. The quantities of categories, brands, flavors, price points and size variations are mind-numbing. Liquor distribution is heavily regulated in Colorado with a 3-tier system composed of manufacturers, distributors and retailers; each tier has its own set of rules and requires its own special license with an application paperwork trail that only a lawyer could love.EXECUTIVE SUMMARY Opening a wine store is the type of business that thrives and succeed in communities where its residents consume wine.
In this post, I will give a wine shop business plan sample that can be used as a guide in writing your business plan.
Then having a business plan for the wine store is paramount.
This dispersed single-unit ownership system is better for the community because it provides economic activity in a variety of locations along with solid living wage jobs that can’t be readily outsourced or automated.
More people have skin in the game and a strong incentive to take care of their stretch of sidewalk in the community.
So, any self-respecting liquor store should have various sizes of Jack Daniels on the shelf, right? She’s paid a decent salary providing a reasonably comfortable living in Pueblo. It’s not lucrative but I’m willing to bet we pay better than comparable positions at local grocery or convenience stores. We did a good bit of business around the holidays and customer traffic is steady. This business is not designed for an “absentee” owner because after payroll and inventory replenishment there’s not much left over.
I think I’ll call around and see who has the best deal on a case of 750 ml bottles of Jack, compare prices/terms and place the order, right? If you want to buy Jack Daniels or any other product whether it’s a brand of beer, wine or spirits, you have your choice of exactly one distributor who carries that product. The only possible way you can get any sort of discount is by purchasing large volumes. However, the setup is perfect for an owner-operator.
Hence, gain popularity by using simple measures like buzz marketing.
You may also consider approaching establishments, like restaurants and bars and attempt to develop long-term business relationships.
Find someone who started the same business in the past, and has since retired.
Tell her what you're doing, and ask her how she calculated it. Revenue projections are almost completely worthless because they're projections.