How to Maximize Your Profits with a Liquor Store
- Posted by admin on June 25th, 2009 filed in Business and Management
Are you attempting to locate a business that won’t be badly affected by the present economic downturn? Everyone else is! So, allow me a moment to share an important piece of advice with you.
Purchase a liquor store.
Liquor stores are incredibly recession-proof, maybe even more than any other kind of retail business. With smart management on your part, you can generate strong sales from your liquor store, even in difficult times.
People will keep on buying alcoholic beverages, even in difficult times. Liquor sales stayed solid through the economic downturn of the mid-1980s, and they’re holding firm in the current economic market. People keep buying wine, liquor and beer, even when times become difficult. But let me put forth the following consideration:
Right now, people are economizing. The days are in the past (or at the very minimum, they’re on pause) when most buyers wouldn’t give a second thought to paying $40, $50 or more for a bottle of wine to have with their dinner, but don’t concern yourself over this, that trend puts you in a great place keep your profits solid, because:
The liquor business lets you adjust and adapt to buying patterns. You can offer an extensive variety of exceptional lower-priced products that appeal to customers today. If you’re an imaginative merchandiser, you can stock your stores with an innovative array of lower-cost wines, beers and other alcoholic beverages, ensuring your customers get good value for their money and never feel deprived. After all, they can still enjoy the adventure of buying and drinking interesting products, while saving money too! Just remember that you need to shop carefully for these products, while remembering to:
Supercharge your profits with low-cost, effective marketing. You can make a $30 profit on a case of economically priced Chilean wines, vs. $10 on a single bottle of more expensive French wine - and the marketing costs are the same for either selection! With the right kind of low-cost marketing (through sales flyers in local newspapers, or via an email newsletter that you send to your clients), you can sell a lot more inexpensive products in these tough times. Your customers will value you as an individual and the superb value which you deliver. You can easily increase your perceived value even more by implementing this next strategy:
Use great service and advice to increase sales dramatically. More customers today are searching around for alcoholic beverages that are low cost, yet still great quality. (This can be summed up with the simple word, “Value.”) This spells opportunity for you, the proud new owner of a thriving liquor store. You can become a student of wine yourself, hire experienced salespeople or just order prudently from the well-priced wines that you see reviewed in famous trade journals. Just don’t forget to lure in customers with some creative marketing strategies, such as sending your customers classy email newsletters that include specific discounts for selected products.
There are no small retailers, only retailers with small ideas! If you’re looking for a flexible, resilient business that will bring in solid profits in the current recession, and make even more money when the current recession goes away - look no further than a liquor store!
Richard Parker is the author of the How to Buy a Good Business at a Great Price series. As President and founder of Diomo Corporation - The Business Buyer Resource Center, his materials, seminars and consulting have helped thousands of business buyers realize their dream of buying a business.
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