Be it a special occasion or some casual party, people have always relied on liquor to take a relaxing break from their busy work schedules. Needless to say, opening and running a liquor store would be highly profitable for you as there would be sales putting in throughout the year, irrespective of the festive season or month.
While running your store, you must have faced several challenges like –
- Budget constraints
- Creating an online presence effectively
- Higher market competition
- Customers looking for famous international and ethical brands
- Dealing with legal issues and regulations
- Offering value-added services and enhancing customer experiences.
If you realize that your liquor business is going in the wrong direction, you need to take the necessary steps to save it. While there are numerous ways to help your enterprise grow, the most effective ones might be monitoring your performance and customers’ buying trends, and cost-cutting. Also, you need to be extra careful if you are dealing in liquor to avoid unnecessary legal issues and fines.
Here are the few most essential things you can do to run your liquor business successfully.
1.Check the Validity of Your Licenses
Make a habit of checking your licenses and permits from time to time and keep track of the expiry dates or renewals, if any.
Even though licensing requirements vary depending on the country or state you are serving, you might get yourself into legal issues if you don’t have a valid license for your liquor business. You may further risk losing your store or end up paying huge fines if you are caught operating your liquor business illegally.
Moreover, ensure that you have registered your business and have given it a funky or classic name to attract more customers. Besides, registering your business is important for paying taxes you might be liable for.
Also, make sure you have chosen an appropriate location to promote your brand and the geographical area you want to serve. Your business location determines the amount of tax you may need to pay.
2.Offer More Products/Services
The higher the number of value-added products and services you offer, the higher traffic will you drive. Living in a highly competitive market, you need to provide unique products and services different from your rivals to attract your clients.
Yes, your competitors might sell the same wines and beers, but you can still stand out by providing more unique products. Customers, today, look for creative cocktails and specialty drinks, such as craft beers. Try to sell a signature drink exclusive to your brand and ensure that it is hard-to-find elsewhere.
Besides drinks and cocktails, try selling other additional products like nuts, chips, and other snacks that are indispensable for drink lovers.
A pro tip: You can consider selling other products and services apart from drinks, such as prepaid phone recharge cards and lottery tickets. Or maybe try running a disco or nightclub. Soon you will find an increasing number of customers swarming into your store, including the non-drinkers.
3.Find the Best Funding Options
One of the most essential resources you need for running a liquor business is a proper funding option. These days, there are so many business financing opportunities for operating a business profitably. You simply need to do a little research about the suitable funding options available for you and of course, do a little planning.
Some of the popular business funding options include –
- Merchant Cash Advance
- Bank loans
- Credit cards
- Venture capital
- Angel investors
But, it is also important to improve your business credit scores to get faster loan approvals in the future. Also, by having good credit scores, you will qualify for much affordable interest rates.
If you have enough space or manage to rent one, you can host special events occasionally or provide your customers to try out your products. You can also conduct classes, or host educational events and tastings to prompt your new products. You may arrange to display your products in a fancy or classic style or put up signages to entice your potential buyers.
You can also distribute free samples and ask your customers to visit your store if they like the new product or beverage. Even if your clients don’t end up at your store anytime soon, they will still be interested in joining the event, thus increasing brand awareness and audience engagement. And who knows, they might turn up to your shop or bar one day!
You can also hire a professional bartender to provide mixology courses, which many of your clients will find helpful while throwing a house-party. Some of them might even consider buying a drink from you after watching the class to get the desired result much easier.
5.Provide Discounts for Bulk Purchases
Consider offering good discounts or other special coupons for customers making bulk purchases, especially on special occasions, parties or during some festive season. Such offers might include ‘Buy One, Get One’ or the most popular version of ‘Happy Hours!’. It increases your customer satisfaction and brand loyalty.
6.Increase Your Business Operating Hours
The best thing about a liquor store is customers will flock in at any time of the day, especially during the after-work hours and late-nights. Try to remain open for all those high selling hours; otherwise, you might be missing out on some excellent revenue earning opportunities.
You can do thorough research on the customer buying trend in your industry and the most preferred time of purchase in your city or locality. It will enable you to monitor your marketing strategies as well, allowing you to do further fine-tuning if required.
If you are confused, you can do a test by increasing your hours for a few days before aking any final decision. See if your sales improve significantly. If they do, then it’s worth a try after getting the necessary resources!
7.Change Your Buying Habits
While purchasing your products, make sure that you are getting your drinks and items at the lowest wholesale prices available. Track and monitor your old receipts and check whether you are getting the desired profit margins. If not, change your dealer.
On buying larger amounts, you must be able to boost your profits and hence, increase your cost-efficiency. Your goal should be to offer quality products and services at the most affordable rates possible.