Liquor Store Business & How Much can You Make?
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- เผยแพร่เมื่อ 1 ก.ค. 2024
- Is owning a liquor store a good idea? How much can you make? And why is this liquor store for sale for only $25,000? Today on Franchise City.
Everyone drinks! So owning a liquor store is a good investment....right? Not that simple.
It's amazing at how few people do this! Before you buy any business. FIRST ask yourself what are your goals. Do you want to run the business full-time? Do you want to put a lot of effort in and build a business? Are you a good manager? Good at numbers and inventory management? Inventory control is a huge part of owning a liquor store. Do you want a passive business? Liquor store not a great option in most cases. Is lifestyle important? Do you have family members who will be involved? What is your long term exit strategy, your growth strategy? Once you have these answers you can determine if the business fits your goals. That's the first thing we do at Franchise City is have buyers complete a goals sheet, then we can fit the right business to the buyer. If you buy a business you hate operating, or are not good at operating, you will likely fail.
If a liquor store is an option. There are two ways you can start a liquor store 1. Buying an existing business, or 2. Start on your own. If starting on your own first thing to check is whether your state is allowing additional liquor licenses in your area. Each state is different and some states have limits on the number of licenses. Those states are usually also the most expensive for licenses and can cost tens of thousands of dollars. So for a startup - check that first.
If you have the money to buy an existing liquor store you can find stores as low as $25,000.The cheapest liquor store for sale is in Greenville County SC, cash flow of $13,000. If you think cash flow is profit, you probably shouldn't be investing in a business!
There are hundreds of liquor stores for sale, on one site alone we see 1086 people trying to sell their stores. This store for sale at only $45K has gross sales of $33,000 a month! Inexperienced buyers think wow - I can make $400k a year and live like a king.
So how much money can you make owning a liquor store? There is no hard and fast rule and your business skill relating to margins will make or break the business. If you are in a high volume, economically challenged area, the margins will be smaller than a fine wine store in Beverly Hills. If you have competition nearby, you will have to adjust your margins accordingly. So there is no set rule to margin. The suggested margin might be 40-50% on wine and 20-30% on the hard stuff. But remember - these numbers will absolutely need to be adjusted to reflect your market conditions. So if you store makes 1 million dollars a year and your average margin is 25%, which is unrealistically high in most cases, after COGS, cost of good sold you will have $250,000. Not bad right? Now take off your rent $70,000 a year you have $180,000, are you working in the store 8 days a week? No you have to hire a cashier that's $30,000 leaving you $150,000. Need another part time stockperson? you are down to $130,000. utilities, hydro, store supplies, and other expenses - easily $30k a year you are down to $100k or less, which is about a 10% margin in this case of our hypothetical store. Again, affluent stores in good neighborhood - higher margins - but higher rent, and low end stores, lower margins.
So what are the threats in this industry? 1. It is a mature industry so competition is intense including a increase of companies like minibar deliver and Instacart. Several venture capital companies have created e-commerce sites with the ability to purchase online and get it within one hour. These companies will continue to put downward pressure on prices. As a small shop owner you aren't getting deals so you'll pay more for your product than the huge corporate shops that are buying 100 cases.
If you do have a dream of owning a liquor store can you turn a struggling store around? Possibly, here are some ideas.
Before you buy monitor your competition. Any outlet selling liquor nearby you need to see what they are selling for. If you are up against a big chain you'll have a hard time because the only way to negotiate better prices is with volume, and you cant buy 100 cases of one brand at a time. If you drop margins too low you will be losing money. If competition is too intense there may be no way to turn that store around.
Market yourself. Most liquor stores don't have a website and its a great opportunity to turn a business around. Your website and social media can promote specials to drive business, you can have promotions and wine tastings, new product announcements, and just keep you store top of mind with your customers while finding new ones.
Is an ATM business a good idea • Is an ATM Business a G... , and Alex Flasinski is a liquor store owner in New York with a good YT channel: • The ONE Thing You Must...
#franchisecity #liquorstore
I owned and run my liquor store with a partner. We split 50/50. We work 6 days a week each and 65-80 hrs a week per person. Some time 100 hrs depending on the week. Sound crazy right? O u own a liquor store u must be balling. Wrong. I worked my butt off. I’m the big boss, cashier, stock boy, manager, customer relation, human resource, security, customer relation and everything in between. I basically live at my store and there are some day I do. But I love it.
Thanks for the comment!
Hire people?
How's business? What do you net per year?
How much net profit a mounth?
@@Iamsugarbrown open one and see it for yourself
You are absolutely correct. You have to be in the store all the time. Not to mention the big boys chain stores are into liquor business at very low margins. The owner have to cater to the customer demand and special order where the big stores are not able to do. Also staying open after the bars closed and that means til 4 or 5 am. Great video as always. Thank for sharing
These are GREAT QUESTIONS to ask and answer for any endeavor. He speaks with wisdom
You've got to add all that you'll be saving , buying alcohol at wholesale for personal consumption, most of which can be written off as shrinkage.
Hello can you plz tell me the prices of alcohol licence plz
All I know is I opened a liqiour store in Dothan AL N BEEN KILLIN IT!!! yea me and my wife run the store but we earning 30k profit monthly put in the work and enjoy the rewards!
Nice!
Great point about having a strong online presence, it works!
LISTEN TO THIS MAN! Working your own store is very fulfilling and rewarding, but you have to be in it for the right reasons. I have a CBD store. Had a partner that thought he was just going to put a manager in and have that manager run his portion of the business. That ended up being a very bad idea. Within two weeks I caught him stealing from us. I ended up buying my partner out completely because he never wanted to show up. Don't think you can put your startup business on cruise control. You have to be willing to work it and put in the hours. Great video! Keep them coming.
I would drink all of the profit 🍸
Thank you for this video. I've been eyeballing liquor stores for awhile now. This answered a ton of questions
Glad it was helpful!
Did you buy?
@@lariosfades8658 no. I'm still rebuilding my vending business after covid. I need to knock out a little debt first then I can move into other businesses
This guy deserve more subscribers the info is absolutly amazing
You always learn something new it’s eight days a week
I'm currently looking at a local small town liquor store. Ty for all this info! What is the website you were showing with the liquor stores for sale?
This is the best channel
You are the best! Thank you so much, I really appreciated.
Thanks for watching :-)
Man, he got back with you quick!
Very informative video thank you !!
Thanks for watching!
I heard that self storage biz is a good idea. Is this true? A good investment with little overhead and easy work?
Its very saturated high upfront cost w/ no guarantee of high return high risk - really if you want to own a self storage biz - use the stock market! A REITS (including storage reits) - are by law required to pay 90% of free cash flows to shareholders - so you get the strong rental income - plus you benefit if the value of the properties appreciate - and you are not directly involved at any step since managements role is to run the REIT - also no liability to shareholders in case of default - you never lose more than the principal you invested - really not a horrible way to earn passive income
Great.. information.
Thanks for watching!
Fantastic, useful information.
Thank you for watching!
Love to hear about fulfillment centers. Thank you
A company that my company works with makes a killing on their stores. Great locations are key to any business but especially in a store like this.
100% true. Thx for the comment.
Yer. Dont want mass jog/ers up in there stealin and shootn.
Best video ever
Hey Rob love your channel!!!
Can you make a video on a home delivery milk business?
I hear because of this virus its still in great demand
Thanks
Thanks! I'll take a look.
Do some research. The spike caused by Covid is a temporary one time event. The USDA said in 2019 that per capita consumption. of milk has dropped 40% since 1975 and the trend has been accelerating in recent years. There have been many dairy farm bankruptcies in the last couple of years. The long term future for anyone selling milk by any channel is bleak.
what is the best business to run and make good money with less stress
When Costco was approved or paid their way, to sell booze. The local stores dried up.
If you think about running a liquor store in Greenville, I would recommend learning to handle a loaded gun or at the least a cattle prod.
I would take it they get robbed all the time???
Which greenville? The one in sc?
Can you plz tell me the prices of licence to sell alcohol plz
Besides shrink, which he mentioned, there is another big thing to be careful of. These places when not in a good area are magnets for shakedown artists. There was a family in Boston had a store and one day Whitey Bulger showed up at their door and said he was taking over. He paid a fraction of what it was worth. You are in a not great neighborhood and some guys come in and "accidently" knock some bottles on the floor to break. Then they walk out. After a few times of this someone comes in when they do it and chase them off. He "suggests" that for $200 a week he can keep out the riff-raff. Don't laugh, it happens.
Hey can you please advice how sweepstakes business work.
My friend owns 4 liquor stores in Dallas area and he makes over $500k a year in net profit. Lots of stress and he works long hours.
What's the goal? Make a certain amount and sell this business? Or keep it for the long run?
@@ruthlessmofo He is planning to sell in 4-5 years and retire.
I saw one for 6.5 mil gross profit and is selling it for 2.5 mil is that a good deal??
You should mention how some stores also rely on RIPS on goods to make money
Nice video you should do Jewlery buisnesse
The big chains will snuff you out! Here in Miami Beach, Total food & Wine, Publix, Walgreens, and many others.
Yep - and happening everywhere. Thx for the comment.
Thank you for putting this out there...... I came to Miami and was debating on opening a liquor store
@@FranchiseCityOnline Consumers tend to be price driven, thus these large chains, ofton whom are not mainly into spirt sales, dominate the retail sales here.
Can Canadian citizen start a liquor store in USA
Anyone can you plz tell me more about prices of licence to sell alcohol plz
Don’t think there are many if any liquor franchise businesses. Seems like it would be a regulatory nightmare especially in Utah.
There's a few- mostly wine and craft beer.
What website is that????
It's basically buying a job.
One where you get shot at
Come on bruh😂😂😂
I just bought a really nice comercial space here in México, its going to be located in a brand new commercial plaza in the entrance of an already established neighborhood. Im going to pull the trigger on a liquor store because Mexicanos we like Coronas and alcohol and fiesta so that's it. Im planning on making a liquor store franchise I would like to expand to other areas of the city in the near future. Hopefully Im going to be able to buy me a Rolex and a Porsche in 6 years.
Thats a great goal! All the best
I believe in you 🤟🏾
What are some ways to build up the capital to open up your first liquor store?
Being frugal and putting money aside each week. Start a side gig can speed things up. Lots of ways to build an online business starting with just a few dollars. There might be loans or grants available including SBA, but some lenders will not loan on a license so you will still need available cash. Every state is different so you should check on local requirements first to see what you need. Thanks for the question!
The small ones get robbed once in a while too. I always thought these were the best cash businesses to have but there is a lot of competition now with that online delivery stuff. Luckily they are charging more for the third party service so it does make it possible for the little guy to make it. But overall, it is harder. Here in Chicago Binny's is building up more and more and taking market share from grocery stores and little mom and pop shops. I talked to an owner and asked how much is the initial investment for inventory 50,000? he was like no, more like 200,000-500,000. Yikes!
Very true! Thx for the comment.
have to run bookie operation in back ......lolololol...i kid
Hello!
What about owning a laundromat business?
Not as passive as you would think. Ours is a constant headache. Machines fault due to people washing extra muddy clothes they won’t wash in their home machines or nasty pet beds full of hair. Also lots of phone calls when machines break and/or wont come on. And repairs are pretty expensive too
Love from india sir . Very interesting video . Learnt a lot from this . Thank you . You have earned a new full-time subscriber :))
Thank you for visiting!
My parents worked tirelessly to own a liquor store, and now, I've expanded by purchasing more liquor stores and convenience stores. I'm bringing on couples-husbands and wives-who genuinely want to change their lives, making them 50 percent partners. All they have to do is run the store, and they also receive payment for the hours they work. This arrangement allows me to oversee that all the stores are running properly, rather than doing everything myself.
Not saying running the stores is easy, but you've got to start somewhere. My parents took the first step, and I took the second step by expanding. I wish Americans would rather invest in generational wealth rather than kicking their kids out at 18 to figure it out for themselves
How many of your employees are illegal aliens? Indian business owners running scam rings must be prosecuted. The problem here is exploitation & you are doing your living in America while employees illegal aliens. All these business practices needs to be unmasked, raided, fine & jail time!
where do you find these businesses being sold
All the liquor stores in California are owned by Asians. They began buying them up in the early 80s. There are few exceptions. The first thing I noticed was open registers and cash only. They would ring up one out of 4 or 5 transactions, and write down the rest day. This way the register tape that recorded sales only reflected a fraction of income
Steve Kovacs It’s a 9-5 job. It’s stable and the revenue don’t go up or down. All inventory purchases are recorded by authorities, you can’t get away with it. Maybe some write offs. Cash means saving from credit card processing fees.
yea asians always never beilive in paying taxes too they pay under the table when u catch blacks or whitesworking in they stores which is good n bad
@@daniellereid7576 you sure like to generalize Asian people...stop being a racist!
I work at a casinos. Asians love to cheat and have the money to post bail if needed
How to contact you because I am interested in buying liquor store
Hmmm.... this will be interesting
Hope it was interesting and thx for the comment! :-)
Franchise City you’re one of my favorite TH-cam channels. The insights are always on point!
What website were you using to locate these stores for sale
bizbuysell
What do you think of a drive thru only store?
Its not a magic bullet - you still need good location/prices/ etc. All things considered it does provide an added level of convenience for local customers that can give you a competitive advantage. Until the competition sees how well you are doing and gets one too :-)
silly question but can you sell liquor online through your website ?
provided all licensing is in place for selling and shipping, yes.
This sounds so expensive and so toxic for a person to run lol I’m sober and I run a bars liquor inventory and it’s just not a business for me. The bar is already confusing enough for my sobriety. Lol like I’d love to run one because I’m excellent with numbers however.... I bet the theft from customer and employees is a ton. 1088 people down and out! Yikes.
Where you make your money is in wine. Well that in Ireland. You make nothing in beer
The dream killer returns!🤣
Lol - nah being realistic doesnt kill dreams all of us own businesses: th-cam.com/video/1yunaxZKyFE/w-d-xo.html
Don't take it the wrong way, I enjoy your content! You give every potential business owner serious food for thought as to the actual trials and tribulations of starting a business! Hopefully we can talk one to one one day!
@@fatboywins Thanks ! I actually did read it as tongue in cheek - I just never miss a chance to shill a video link :-)
I owned one once but drank all my inventory
last minute of your video is the meat and potatoes -- thank you for all the useful info (not that I'll ever purchase a liquor store hehehe). Cheers 🍸🍹🍺🍻🍻🍻
You never know! Thanks for watching!
Can I acquire a liqour store with no money down through seller financing? Does the listing agent get screwed in the deal?
Possibly but there are some risks - this video may be of interest: th-cam.com/video/S977GCcp1w0/w-d-xo.html If a listing agent is involved they will still have to get paid by the seller. Thanks for the question!
I've watched your video, appreciate all the valuable info. Ive been doing extensive research for quite some time on the liquor store perfect for me, just haven't pulled the trigger on a seller finance deal. Is there someone who can look at the financials before I go into escrow and just double check it for me?
@@AlexMendoza69 Pro accountants, preferably ones with experience in the industry, can check the books and point out any glaring inconsistencies.That said, if the owners were adept at hiding smaller inconsistencies, even a skilled accountant could miss them. You can also get a valuation done to see if you are overpaying. Make sure leases, suppliers agreements, and all licenses are transferable. There is lots more but those are the big ones. Diomo used to have a complete guide on buying a LS, not sure how updated it is but u can try Googling Diomo and liquor store and check it out. Hope it helps and all the best!
The vast majority of jobs are provided by small business. Doubling minimum wage and increasing benefits, will more than crush these businesses. Even if you clear 6 figures, look at the liability. Everyone isnt a greedy billionaire.
🍾🍾
What website is this to search franchises
www.franchise.city
what is cash flow?
There are several types of cash flow, but "cash flow" at it's most basic level is all the money flowing in and out of a company. sba.thehartford.com/finance/cash-flow/what-is-cash-flow/ Thx for the question.
What's the name of the site selling these various liquor stores? Thanks
Bizbuysell.
Chin Beard!
Wow he lost a lot of weight
"Hydro and water.«".. Haha
What franchise did YOU buy into? 👍👍
I currently own a consulting franchise and have previously owned service based franchises. That said - the most important thing to remember is that each persons situation - their business goals, skills, lifestyle preferences, local market etc. is different. A franchise that is good for one person could be terrible for the next. Of note, not one of us at Franchise City has owned or owns the same franchise! 🙂 th-cam.com/video/1yunaxZKyFE/w-d-xo.html Thanks for the question.
Where my fellow booze bags at?
Wait I thought cash flow is profit. Revenue is gross income. And I thought cash flow was the remaining income after expenses
Cash flow is money flowing in and out of a business. A "cash flowing" business is just one that has money coming in - it may not be profitable.
Hydro???
Sorry - Canadianism slipped through eh. www.quora.com/What-do-Canadians-mean-by-Hydro . Hydro is power/electricity in Canuck.
@@FranchiseCityOnline lol no worries.
Lol 😂 not everyone drinks but everyone needs to make money. I see drunks I see cash 💵
This is definitely NOT true ! Beverly Hills California is full of Persian peolple who are very cheap. Ironically, a Liquor store in a lower class area can be much more profitable. This guy is WRONG about this point. Let me give you one example to shut you up. A 1500 square foot store in Beverly Hills California will cost you now at least minimum $10,000 rent a month. A store in lower middle class Pacoima with 1500 square feet will cost you about $3000 a month. IF YOU DON'T BELIEVE ME GO ONLINE AND LOOK AT STORES FOR LEASE AND GIVE THEM A CALL. The distance between these two cities is approximately 24 miles( look it up.) You are saving $7000 a month right there alone. 🏅
The key word in your comment is "now". The real estate market has changed considerably since the making of the video. Commercial real estate in particular. In relation to your first point I would suggest doing a bit more research. Do you really believe an owner operated store in a bad neighborhood makes more than a high end big box selling wines? Not to mention the volume discounts they receive. "This guy" prefers to rely on industry reports and actual statistics over the presence of a few frugal Persians 🙂 Thanks for the comment.
They say selling cocaine is profitable
Liquor store business in Utah is not a good idea
How come?
Successful liquor stores should sponsor orphanages. World hunger could be wiped out in twelve years. And liquor makes trillions of dollars a year. The successful liquor stores could do it.
Sounds like a terrible business