Скачать или смотреть 3 Factors That Influence How Much Liquor Stores Make a Year

Deciding how to measure and gauge success as a liquor store owner can be challenging. Luckily, we've found the answer for you. In this video, we cover the three biggest factors that influence how much your liquor store will make in a year and how to measure them successfully.

If you'd like to learn more about our liquor POS system, give us a call at: 1-877-727-3548

TRANSCRIPT:

Getting a new business off the ground is hard work — and even once you are up and running — it can be challenging to gauge your success at first.
While there’s no set formula to determine liquor store profits — there are a few factors that can make this easier to estimate for your small business.
In this video — we’ll outline the top 3 factors that influence your liquor store’s profit margins.

The first factor is location.
If you’re in the beginning phases of opening a new business — you’ve likely done some research on the area’s cost of living.
Rent is often one of the most significant expenses for a small business — so your lease price is definitely worth working into the equation.
If your store is in a more expensive area — your operating costs and taxes will be higher.
These are all elements that impact your profit margins.
When looking at location — you should also do some competitor research.
How many other local liquor stores are nearby?
Is the market crowded — or is there an open opportunity?
Consider what competitors are stocking as well — and if other stores are nearby – think of how yours would be different.
This location-based information can tell you about gaps in the market that your store could fill — and it’s important to consider when calculating profits.

The next factor is people.
To keep the doors of your store open — you’ll need a team to run it.
Pay rates are a cost you should consider — but you should also monitor turnover rates.
If you’re constantly losing employees — you will always be investing in recruitment and onboarding.
A trainee is not as effective as a staff member who is fully ramped up — so if you find yourself hiring frequently — you’ll want to factor these costs into your calculations.
Vendors and suppliers are people who are just as important to your liquor store.
Like many small businesses — sometimes getting the best deals is all about who you know.
If you have strong relationships with your vendors — you may be able to work out deals that are mutually beneficial.
The last — but certainly not least group of people to consider — is your customers.
It shouldn’t come as a surprise that your clientele will impact how much you expect to make.
What type of customers frequent liquor stores in your area?
What products are they looking for — and how much are they willing to spend?
Understanding the behaviors and expectations of customers in your area will help you accurately assess the target profit for your business.
People are a huge part of the equation — so put some effort into those who are most valuable to your liquor store.

The final category that influences profits — is inventory.
You know that purchasing inventory makes up a significant portion of your monthly and yearly budget.
You can tie ordering into your customer base research — as you’ll only want to purchase products that will appeal to your clientele.
Are you stocking inexpensive beers — or high-end liquors?
No matter what you keep on your shelves — your upfront costs and profit margins will be affected by what’s in stock.
While we’re talking about stock — nothing is more important than reliable and efficient inventory management.
How you track inventory can influence profit margins in a number of ways.
First – if your system is inefficient or difficult to use — you may be wasting time and money in payroll hours by trying to keep up.
Second — you should consider the reliability of your inventory management solution.
If your inventory is inaccurate — that opens your store up to theft or fraud that may go undetected.
This can also lead to over- or under-ordering — and having your cash tied up in dead stock.
We recommend investing in a POS solution that specializes in inventory management for liquor stores — making the process much less of a chore.

If you’re trying to figure out how much your liquor store will profit — these factors will help your calculations.
Most liquor shops see a profit margin between 20 to 30 percent annually — for a ballpark figure — but this can go as high as 50 percent with the right tools in place.
If you’re interested in learning about our retail POS solution — and how it can boost profits for your liquor store — reach out to [email protected].
Thanks for watching!