What do the most successful liquor stores have in common?
Their owners have a plan, following proven steps to comply with the law, attract customers, and achieve profitability.
Diving headfirst into the liquor industry might seem intimidating, but we’re here to help you make a rock-solid plan for your store’s success.
In this blog, we’ll explain how to open a liquor store in seven simple steps, sharing our top tips and favorite resources along the way.
Cheers to the beginning of your small business adventure!
Before we cover how to open a liquor store, let’s start with a more important question: Should you?
Opening a small business takes a significant investment, careful planning, and a healthy appetite for risk — but tackling these challenges can be well worth it. Depending on the product, liquor stores enjoy profit margins ranging from 20 to 45%!
Ready to put in the work? Let’s explore the seven essential steps to open a promising liquor store.
Liquor store success starts with a rock-solid business plan. This living document is your roadmap, guiding every decision about how to launch and run your business.
Let’s look at the two most critical chapters of your liquor store business plan: the financial section and market research.
Your financial section is where you calculate your startup and ongoing expenses, forecast your store’s revenue, and identify your breakeven point, which is when you’ll achieve profitability.
Common liquor store startup expenses include:
Once you’ve estimated your costs, it’s time to forecast your liquor store’s income. Make a realistic estimate of how many customers you expect to visit your store each day and how much they’ll spend.
After calculating your potential expenses and revenue, you’ll have a better idea of if and when your liquor store will be profitable.
What makes your liquor store special?
Market and competitor research should help you answer this question. Look up your neighborhood’s demographic information, visit other liquor stores in the area, and talk to fellow liquor enthusiasts to learn who your customers are and identify a gap in the market.
Let’s say your city is saturated with liquor stores that offer huge selections and low prices, but choosy cocktail aficionados have trouble finding rare and luxury bottles.
In this case, you can meet these customers’ needs and set your business apart with a carefully curated selection of luxury spirits at premium prices.
Bonus Resource: How To Create a Liquor Store Business Plan [+ Free Checklist]
Step two to open your liquor store is to get on the right side of the law.
Start by researching your state’s liquor licensure process. Most likely, you’ll have to assemble the right paperwork, complete an online application, and pay a fee. You may also have to secure additional retail or zoning licenses.
Obtaining licenses and permits can take a while, so start this process as early as possible.
It’s also critical to understand your state and local laws regarding alcohol sales. Selling alcohol to customers under 21 is illegal everywhere in the U.S., but some states (like Texas) have additional regulations regarding reporting, sales tax, and marketing. Check with your state’s alcohol governance board to learn more.
Related Read: How To Legally Sell Alcohol: 5 Things You Need To Know
Now it’s time to bring your liquor store dreams to life — starting with a location.
A steady flow of sales depends on foot traffic, so choose a location that’s visually inviting, is easy to find, and has enough parking to accommodate your busiest hours.
Once you’ve found the perfect spot, you can start working on your liquor store’s interior.
First, outline your floor plan. Identify where products should go, and invest in shelving and signage to help customers find their favorite spirits. Don’t forget to add a few eye-catching displays to show off your bestsellers or discounted bottles!
You can also use your liquor store’s interior design to discourage theft. Install comfortable but bright lighting, and ensure your security cameras are easily visible from every corner of your sales floor.
Running a liquor store is a tough job, and you can’t do it alone.
That’s why we recommend investing in a liquor store POS system.
Along with shaping the checkout process and securely processing sales transactions, this powerful tool saves you time by automating tedious manual processes. Here are a few examples of how your POS system can simplify your day-to-day operations:
Our number-one tip is to choose a POS system designed with liquor stores in mind. That way, you’ll have access to the industry-specific features and support you need.
Related Read: Liquor Store POS Systems: 5 Top Providers [Features + Pricing]
It’s finally time to stock your liquor store’s shelves! Curating your product selection is one of the most exciting parts of opening a liquor store, but doing it the right way is crucial.
Let’s take a closer look at how to design your product mix, manage vendors, and develop a pricing strategy.
What products should be on your liquor store’s shelves? The answer is that it depends.
A value-focused liquor store might offer a wide selection of the most popular brands, but a small boutique bottle shop might specialize in luxury tequila brands and fine mixers.
When designing your product mix, consider your store’s unique value proposition (UVP), ideal customer profile (ICP), and competitors. Above all, you should offer customers a selection that they can’t find anywhere else.
Your next step is to build a strong relationship with your liquor supplier.
Get quotes from several different vendors, and negotiate to reach a deal that works best for you and your budget.
Your POS system should make it easier to manage vendors and restock your liquor store with features like automated purchase orders, automated receiving, and inventory cost tracking.
The right prices are another must-have ingredient for liquor store success. If they’re too high, you’ll turn customers away and lose sales. If they’re too low, you’ll never achieve profitability.
That’s why we recommend relying on your POS system to crunch the numbers and track the profit margin of each of your products. You can monitor and adjust your prices to strike the perfect balance — meeting your customers’ expectations and turning a profit.
You’ve got the right permits, the right location, and the right products — now all you need is customers.
Here are a few tried-and-true liquor store marketing strategies to help you attract and retain shoppers:
Implementing an effective marketing approach from day one will set your liquor store up for success and help you cultivate a thriving customer base.
The last thing on your to-do list before opening your liquor store is to assemble a team.
Research competitive wages and benefits in your area, hold formal interviews, and run background checks to find cashiers, stockers, and team leads you can rely on.
Then, equip them with comprehensive training on your store’s selection, the importance of stellar customer service, and how to use your store’s POS system.
You can’t always watch over your store in person, but a trustworthy team is the next best thing.
Congratulations! You know how to open a liquor store, so you’re ready to take your first steps.
Searching for a partner to support you on your small business journey? You don’t have to look far.
Bottle POS is our top pick for liquor store owners like you. This all-in-one POS solution includes all the features you need to launch and manage your liquor store, including powerful yet user-friendly inventory management, marketing, and reporting tools.
Plus, Bottle POS’ team of liquor industry experts is available 24/7 to help you make the most of your new POS system.
See Bottle POS in action by scheduling your live demo today.