What goes with liquor?
 

I am opening up a liquor store. The space I'm eying is 1500+ sq ft, which I believe is much too big for a liquor store. I think it would be foolish to use up store space for inventory.

So...what should I do? [img]/images/graemlins/confused.gif[/img]

1. Subleasing the store, and dividing it into 2 or 3. how do you guys feel about subleasing? is it difficult to do this by yourself/efficient?

2. Sell more things...but what really GOES with liquor?
Some thoughts I have are...
-glassware/drinking supplies
-cigarettes
-t-shirts

what do you guys WISH was in a liquor store...other than liquor, when you go there? or what do you buy other than liquor that makes you want liquor...?

Im sure this sounds like somewhat of a crazy plan, any help is appreciated [img]/images/graemlins/smile.gif[/img]

Re: What goes with liquor?
 

wine

Re: What goes with liquor?
 

Snacks, cigarrettes, cigars. That's about it.

Re: What goes with liquor?
 

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I am opening up a liquor store. The space I'm eying is 1500+ sq ft, which I believe is much too big for a liquor store. I think it would be foolish to use up store space for inventory.

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You don't want to rent space that you can't use. If you do, you're putting yourself at a big competitive disadvantage. Don't do it - find a space that is more suited for your needs. Some landlords will divide large spaces, although, 1500 sq. ft. really isn't very much to divide. I probably wouldn't divide 1500 if I were a landlord.


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1. Subleasing the store, and dividing it into 2 or 3. how do you guys feel about subleasing? is it difficult to do this by yourself/efficient?

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Commercial rental property exists in a market that is totally different than the residential RE market. Subleasing commercial property is going to be difficult if not impossible. It will be expensive to get it rented, and your legal fees are probably going to be very high. Plus, the landlord might not go along with the idea.

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2. Sell more things...but what really GOES with liquor?
Some thoughts I have are...
-glassware/drinking supplies
-cigarettes
-t-shirts

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IMO, if you're in love with the space, this is your best bet. Maybe what you could do is go around to 50 liquor stores in your area and see what other people are doing.

Re: What goes with liquor?
 

1500 sq ft is about the size of the liquor stores around me.
They have:
Liquor
Wine
Beer
Mixers
Gift Bags
Gift Sets
Candy
Chips
Lottery
Soda/Pop/Red Bull
Supplies - cork screws, tooth picks, etc.

When you include beer coolers, back office, storage/trash room, counter/register, shelves & displays the space fills up quickly.

I don't know of any stores around me that just sell liquor anymore. They have all added beer, wine, etc. and turned into one-stop alcohol shops.

Re: What goes with liquor?
 

on your lease (presuming you didn't buy the space) it will have strict guidelines to what you can and cannot sell and also even stricter rules about subletting.

for more clarification: are you in a strip mall?

Re: What goes with liquor?
 

thanks for replies everyone.

TO BANDITGBERG: My location is a strip mall

TO WARBUS: "When you include beer coolers, back office, storage/trash room, counter/register, shelves & displays the space fills up quickly."

I dont think I will need/want a back office... and I dont think its optimal to use such expensive space for STORAGE. I have very little experiece though, so this might be standard for all I know.

TO Spex x:
I completely agree it's a bad idea to leasing more space than I believe I need, but I am "in love" with the location.

Re: What goes with liquor?
 

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TO WARBUS: "When you include beer coolers, back office, storage/trash room, counter/register, shelves & displays the space fills up quickly."

I dont think I will need/want a back office... and I dont think its optimal to use such expensive space for STORAGE. I have very little experiece though, so this might be standard for all I know.


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Back office: It does not need to be big. Just someplace to deal with cash, invoices, ordering, etc. There is a lot of stuff that needs to be done that shouldn't be in front of customers/employees.

Storage: A back room is helpful for:
deliveries- you don't want your aisles filled and you may not be able to unload an order right away.
excess inventory- especially important when overstocked during holiadys. There should be several holidays where you will double or triple order. Boxes of product stacked in various places looks bad.
putting together displays
excess boxes- everything gets delivered in a box which needs to be broken down and taken to the dumpster
cleaning supplies
excess shelving
random stuff that just seems to accumulate

A back room takes away from the sales floor but indirectly helps the store. It makes sure the rest of the store looks as professional as possible.

Re: What goes with liquor?
 

Bags of ice, limes & lemons, soft drinks for mixing, snacks, and a good beer selection.

ScottieK

Re: What goes with liquor?
 

[ QUOTE ]
thanks for replies everyone.

TO BANDITGBERG: My location is a strip mall


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i am %99.9 positive you won't be able to sublease and/or sublet part of your space. read your lease then approach your prop. managment company. this space may be easily leased to another store so tread carefully

Re: What goes with liquor?
 

I HATE...

when a liquor store doesn't not have all the necessary mixers.

In PA, they are strict about these rules, but there is rum but no coke, bourbon but no ginger, no tonic, no lime juice in some places... it's annoying, we want it all in one spot.

Drinking game materials.. pong balls, cards, dice.. etc

Oh yea and you should have some random dudes with Designated Driver signs around their neck that you can rent at minimum wage for the night to drive your car....

Re: What goes with liquor?
 

WARBUS:"Back office: It does not need to be big. Just someplace to deal with cash, invoices, ordering, etc. There is a lot of stuff that needs to be done that shouldn't be in front of customers/employees."

If I lived near the store/mall, I'm talking 5 min walking distance, do you still think this is necessary? Can't I do all these things after closing or at my home? And also, I will be running this with 2 friends, so they can go make inventory/trash runs should the situation come up. I'm sure well have to drastically change inventory during certain holidays. I don't know if these adjustments can substitute for a back office, any thoughts are appreciated.

As far as storage, I was thinking of renting storage space. I am unsure of how expensive this is or how close it is to where were opening. It just feels bad using "store space" for storage. On the other hand, if there were just A LOT of liquor on display...would that make my store more appealing?


BANDITGBERG:
I'm not sure what you mean by thread carefully...Like should I not ask the manager because ill scare him off by thinking ill sublease illegally?

ScottieK:
Ice sounds nice, I'm not really sure how that works though. I need to talk to gas station owners...or hopefully someone here can clue me in. I will be selling beer.

and btw...if by some miracle me and my friends pull this off, you guys come by for free liquor sometime (you gotta be 21) =)

Re: What goes with liquor?
 

Ice delivery companies will usually supply you the ice and the freezer.

Taking work home will become a nightmare. A business like this takes up most of your life. You do not want to be taking it home with you too. Your free time will become very precious. You want to have almost everything done during work hours. Plus, you do not want to be walking home everyday with lots of cash. Liqour is still a mostly cash business.

Offsite storage isn't a really good idea. A good store can order hundreds of cases of beer each week and many cases of liqour and wine.

Getting into this with two friends may be a bad idea.
Who will be in charge?
Who controls the money?
Who does the schedule?
What happens if one wants out?
What if someone doesn't pull their weight?
What do you do when someone starts skimming(very possible)?

This business will be your life. Some people can't handle it.

Re: What goes with liquor?
 

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thanks for replies everyone.

TO BANDITGBERG: My location is a strip mall


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i am %99.9 positive you won't be able to sublease and/or sublet part of your space. read your lease then approach your prop. managment company. this space may be easily leased to another store so tread carefully

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Yeah, I agree. You're not going to be able to sublease. And even if you could, commercial property can sit empty for a very long time before someone rents. This will be too expensive for you and the legal fees will kill you.

Re: What goes with liquor?
 

Alright, subleasing sounds horrible. thanks for the warning guys.

to WARBUS:
Alright alright, ahhaha you make a good argument for a back office. Ill definitely consider it and run it pass my friends. Especially with so much room, I'm sure we could get a back office of some sort.

As far as the friends concern, Ive heard the warning more than once. I dont think itll be a problem, were pretty tight, it would be like running it with family.

thanks for all the input man, uve helped out alot.

Re: What goes with liquor?
 

What about consignment? Let a company put there own items in a special display (like cheap sytrofoam coolers, or soft drinks that are known to mix well with booze.) Won't cost you anything but the rent on that space (or possibly charge the display dealer a small fee for displaying). If the mall manager gripes about it you can not mention about the dealer's fee.Just tell him/her that you let them do consignment sales. But now I don't know any thing about beer/liquor sales or mall sales. I'm just throwing it out there. Another bonus is that you only pay for what is sold or stolen.

Re: What goes with liquor?
 

porn and fire works?

Re: What goes with liquor?
 

SAAAAAAWEEEEEEEEEEET.

Nothing better, when you're drunk, than fireworks and titties.

Re: What goes with liquor?
 

There is a "small" liquor store near me (1200 sq ft about)
I know the owner a bit and have gained a little knowledge.
(markup is roughly 25 % on most alcohol)

This is what he carries:

Beer, Wine (decent selection), liquor, champagne, sodas
Cigarettes, Chew, small cigar selection
Ice
small selection of chips & pretzels.(frito lay products)
plastic cups (ecsp. for barrel purchases)
lotto
poker shirts (hawaiian style) from fifthstreetpokershirts.com
t shirts with beer,liquor logos (giveaways from suppliers)
jaeger-bomb cups (small cup molded in a larger cup..not sure where he got these)I can find out for you if you want to know where to purchase these

Beyond this I would add:

Decks of cards, lighters, dice, porn mags, napkins, cheap styro coolers, candy, gum, jerky.

Good Luck

Re: What goes with liquor?
 

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porn and fire works?

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I was thinking...about splitting it into three parts:

1. Liquor store
2. Gun Store
3. Fake ID store/Day care center

but ya, fireworks and porn sounds good too [img]/images/graemlins/tongue.gif[/img]

Re: What goes with liquor?
 

TO KEITH:
I'm not sure on the consignments. Things you said, like coolers for example, I'd probably want to buy and sell myself for more profit. With everything everyone else has said, I don't think its possible to really share my space.

TO POKERBOBO:
Thanks for the suggestions. I'm starting to think maybe 1500 sq ft might not be TOO big for a liquor store.

Re: What goes with liquor?
 

I can't beleive someone has not stated the obvious.

Liquor
In Front

Poker
In Rear

Seriously...
Make sure you cater to your local customers. Are you in a high dollar area? Stock the hard to get expensive stuff. Low dollar? Weekly specials on MD20/20.

Be serious about security!

Re: What goes with liquor?
 

I don't know what state you're in -- but DEFINITELY make sure you know the liquor laws and abide by them.

And some of this stuff is not common sense in many states.

Examples:

Some craft beer lover comes in and wants to make his own mix/match 6-pack -- is this allowed in your state?

Beer distributor makes you customized signage to hang on the outside of your store for free. Legal in your state?

You want to run a promotion for a free 2-L bottle of Coke with Rum purchase. Legal in your state?

A new tequila brand wants to run a tasting promo at your store -- legal in your state? What size taster is legal? Do you need to pay for the liquor consumed?

Examples of nutball situations that seem simple but can be made complicated by your state and local government.

Re: What goes with liquor?
 

walk in cigar humidor FTW

Re: What goes with liquor?
 

I don't know if this is common in USA or if it's a 'taken as given', but in Australia they have walk in fridges with cases of beer. For parties etc. these are a real godsend.

Re: What goes with liquor?
 

TO VERYTNA: I guess Id be about mid-dollar consumers/low dollar. md20/20, which i have drank, is freaking gross.

TO BRUINERIC: thanks, ill get these figured out soon hopefully, I'm living in Texas.

TO HOLDINGFOLDING: A walk in fridge sounds so cool. I doubt I have the capital to pull that off though.

Re: What goes with liquor?
 

If its leagal, some stores around here bring in wine distribs once a quarter or so to do wine tastings...if clientel is into wine, this can bring good traffic, of course specials are run on these nights for the wines available at the tasting.

Re: What goes with liquor?
 

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A walk in fridge sounds so cool. I doubt I have the capital to pull that off though.

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The ones I've seen are just a 10 foot x 5 foot place with kegs and really cold 12 packs/cases stacked up on the floor.

Re: What goes with liquor?
 

LOTTO

Re: What goes with liquor?
 

[ QUOTE ]
what do you guys WISH was in a liquor store...other than liquor, when you go there? or what do you buy other than liquor that makes you want liquor...?

[/ QUOTE ]


Mix and ice. As soon as I leave the liquor store I'm off to the grocery store to get mix and ice.

Re: What goes with liquor?
 

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LOTTO

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This right here will pay for most of the overhead associated with the store. It's not a big money generator but will bring in some extra cash. But if you're catering to the Dom Perignon crowd, this would be a very bad idea.

Remember also that during big jackpots you'll get a line out the door and will need 1 person dedicated to the machine. It could also cause unnecessary crowding in your store.

Re: What goes with liquor?
 

Bebo, do you have a basement to store the inventory? Renting storage offsite will be a major pain in the ass. I don't know how it works in Texas, but in NY you can order say 50 cases from Peerless (a wholesaler) and pay them like 2 bucks a month to store the liquor in their warehouse. You just call them and they'll deliver it. The inventory is paid for in full, you're just using their storage space.

Re: What goes with liquor?
 

strippers.

Re: What goes with liquor?
 

Hey again MrBlue,

I do not have a basement to store my inventory. Its gonna be about 1500 sq ft, and thats it. It sounds like I should just have them deliver it to me and have no storage space of my own.

I'm not sure what you mean by paying them money for inventory...does that simply insure that they will DEFINITELY have what I need when I need it? Is this the optimal way to go?

If I simply want them to deliver a set amount on a weekly basis or something, inventory would be free right (and is this a stupid idea that I could manage what people want to buy to this exact degree)? And is delivery from the wholesaler to my place of business usually free or do I need to take care of that myself?

thanks again

Re: What goes with liquor?
 

I'm planning to visit my parents on Sunday night. I'll take a pic of the media beverage book and a page out of it so I can better show you how ordering and discounting works.

Re: What goes with liquor?
 

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I'm planning to visit my parents on Sunday night. I'll take a pic of the media beverage book and a page out of it so I can better show you how ordering and discounting works.

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So he'll get a better discount by ordering 50 cases at once and having them store them until needed compared to ordering 6 cases a week for two months?

The only problem I see with that is if he does it when he first starts his store he'll need a ton of extra capital.

Re: What goes with liquor?
 

http://img87.imageshack.us/img87/4546/absolutjv2.jpg

So this is a pic out of the Beverage Media book that every liquor store in NY subscribes to. These are prices from Feb 06.

So if you have limited start up capital, you can buy one case of Absolut 1L but as you can see from the chart, your cost is $23. You said the price of 1L of Absolut is $26 in your area so you're making $3 a bottle. You can't order by bottle, only higher end wines and liquors can you order by the bottle.

So you can see that as you order more at a time, your profit goes up without needing to do anything. Of course capital constraints is a big issue.

The biggest problem here in NYC is that there's a liquor store every 4 blocks or so. So if a store wants to mark it up at 18% and sell their Absolute 1L @ $23.43 but you can't afford to buy 50cases and can only buy 1 case at a time, you basically cannot compete at all. They can make a profit of 18% selling at your cost.

If the closest liquor store is 20 min drive then by all means mark that [censored] up! Know your competition. Liquor is a very old and well understood business.

Re: What goes with liquor?
 

So if you use my previous example: You can order 50 cases (assuming you got 50 x $230.59 = $11.5k to pay the wholesaler) and have them only deliver say 10 cases at a time. The remaining 40 cases will be stored at their warehouse for a fee. Whenever you want another 10 cases, call them up and say I want 10 cases of my remaining 40 delivered. They'll usually come the next day. Again, I don't know how it works where you are but wholesalers allow this in NYC. Delivery is free or rather it's already built into the price.

You'll see that it gets to be a huge pain in the butt after you accumulate some working capital. It's much easier to restock from the basement or back room than to call the warehouse every week. What if some guy with a huge party comes in and buys 1 case and you can't get anymore until tomorrow because the warehouse can't deliver it today? But if you have limited capital, you gotta start from somewhere.

Now of course you can order 1 case at a time. But it'll cost you a lot more money on a per case basis. Obviously you don't need to put up as much money upfront if you order 1 case at a time but your profit margin is that much less.

[edit]
Btw, some places will allow you to mix and match the 50 cases w/ different sizes and still get the top discount. So you can order 10 cases of 1.75, 25 cases of 1L, 10 cases of 750, 5 cases of 375ml and still get 18% off the whole thing.

Re: What goes with liquor?
 

But that's all for just 1 product (Absolut Vodka) right? Damn, spending up to $11K per product for a 1500 sq. foot store would require over a million bucks start up capital.

Re: What goes with liquor?
 

It's not a cheap business [img]/images/graemlins/wink.gif[/img].

You also don't have to buy 50 cases of a product. That's just an extreme example. There are plenty of stores that buy 5 cases of an item and maybe 50 cases of 1-5 products that move really well.

It's also highly location dependent. There's no way in hell you can move that many cases in a short amount of time unless you're in the middle of times square or something. How often do people buy Maker's Mark? Maybe 2 bottles a week. At that rate, you can mark it up higher (because no one else is going to stock 50 cases of a slow moving product) and work with say a 3 case deal.