- Nov 20, 2005
- 6,161
- 2
- 81
Does anyone here own a liquor store?
- Thread starter HybridSquirrel
- Start date
- Nov 20, 2005
- 6,161
- 2
- 81
Yeah I was thinking about it today. Browsed around a business for sale website. Checked it out tonight, pretty standard corner liquor store with no real competition and a private parking lot right off a main street. Not a shitty area either. Nothing really specialty as far as booze goes, asking price includes inventory and liquor license.
AyashiKaibutsu
Diamond Member
- Jan 24, 2004
- 9,306
- 4
- 81
highland145
Lifer
- Oct 12, 2009
- 43,973
- 6,337
- 136
wabbitslayer
Senior member
- Dec 2, 2012
- 533
- 1
- 76
I'm pretty sure that at the rate of $20-$30 a week for the last 20 years, I already have purchased one.
I just don't know where it is...
I just don't know where it is...
SpatiallyAware
Lifer
- Sep 7, 2009
- 12,960
- 3
- 0
You won't make any money owning just one. The margins are too thin. If you can only afford to buy 1 then plan on spending all of your own time working there.
In my mind there are two types.. Lower class, you don't spend ANY money on renovations etc, pay people min wage, cameras everywhere, looking over your shoulder all the time.
Or higher class, spend some $$ on interior design and marketing, carry oddball stuff, make sure you know your liquor and can do the "sales" aspect.
In my opinion it would be a high stress business to own. You need cameras everywhere and could not trust your employees. Just not my thing, personally.
In my mind there are two types.. Lower class, you don't spend ANY money on renovations etc, pay people min wage, cameras everywhere, looking over your shoulder all the time.
Or higher class, spend some $$ on interior design and marketing, carry oddball stuff, make sure you know your liquor and can do the "sales" aspect.
In my opinion it would be a high stress business to own. You need cameras everywhere and could not trust your employees. Just not my thing, personally.
SpatiallyAware
Lifer
- Sep 7, 2009
- 12,960
- 3
- 0
I would definitely find out what they're paying wholesale for their product and figure out if it's feasible before even considering it.
How much are they asking? Seems to me if they were making ANY sort of profit they wouldn't likely be selling.
DrPizza
Administrator Elite Member Goat Whisperer
I guess it depends on the area. I don't see how they make a significant amount of money; seems to be a more or less just scraping by type of business.
brainhulk
Diamond Member
- Sep 14, 2007
- 9,376
- 454
- 126
I'm thinking nail salon in a mostly asian neighborhood would be better.
1. Women always get their nails done
2. Asians pay cash
3. You pay Asians in cash
4. You may have your small number of non asian workers or customers, but that is to keep the irs off your back
1. Women always get their nails done
2. Asians pay cash
3. You pay Asians in cash
4. You may have your small number of non asian workers or customers, but that is to keep the irs off your back
boomerang
Lifer
- Jun 19, 2000
- 18,883
- 641
- 126
Why is the owner selling?
Owner should provide you with P&L Statements and Balance Sheets which should give you an idea of the health of the business. Ask for three years as a minimum.
If you're in HI as your profile indicates, what is the rent? Will you be leaving the doors open with the A/C on as is often customary in HI? Rent and utilities alone could eat you alive.
My understanding is that booze must be sold at a government dictated price. So you have less control over a business of this type than many business owners would have. Shipping costs to get product to you would be high but I would imagine that is factored into the government dictated pricing. That would be a good thing to know. Also be aware that you won't be able to buy in quantities to get the best pricing from suppliers.
What are the political winds like in regards to this business? Booze is pretty much a staple of life but Hawaii is in financial trouble from some things I've read. One of the first thing states typically do when they are in trouble is institute higher sin taxes. What I'm saying is be informed and be aware.
I wonder what liability insurance runs on a business like this?
Most of all, know full well what you are getting into and then be ready for many surprises. In retirement, I decided to open a franchised business because I was bored. I enjoyed getting everything together to make it happen. A location, the lease, a contractor for build out, the actual construction, equipment, and so forth. What I didn't like was actually running it. It's a 24/7 commitment and don't for a second think otherwise. I couldn't find people with a work ethic and the brains to manage it for me. 18 months in I sold it.
And all those stories you heard about government paperwork and requirements? They're true, just more onerous than you imagined.
Owner should provide you with P&L Statements and Balance Sheets which should give you an idea of the health of the business. Ask for three years as a minimum.
If you're in HI as your profile indicates, what is the rent? Will you be leaving the doors open with the A/C on as is often customary in HI? Rent and utilities alone could eat you alive.
My understanding is that booze must be sold at a government dictated price. So you have less control over a business of this type than many business owners would have. Shipping costs to get product to you would be high but I would imagine that is factored into the government dictated pricing. That would be a good thing to know. Also be aware that you won't be able to buy in quantities to get the best pricing from suppliers.
What are the political winds like in regards to this business? Booze is pretty much a staple of life but Hawaii is in financial trouble from some things I've read. One of the first thing states typically do when they are in trouble is institute higher sin taxes. What I'm saying is be informed and be aware.
I wonder what liability insurance runs on a business like this?
Most of all, know full well what you are getting into and then be ready for many surprises. In retirement, I decided to open a franchised business because I was bored. I enjoyed getting everything together to make it happen. A location, the lease, a contractor for build out, the actual construction, equipment, and so forth. What I didn't like was actually running it. It's a 24/7 commitment and don't for a second think otherwise. I couldn't find people with a work ethic and the brains to manage it for me. 18 months in I sold it.
And all those stories you heard about government paperwork and requirements? They're true, just more onerous than you imagined.
ussfletcher
Platinum Member
- Apr 16, 2005
- 2,569
- 2
- 81
boomerang
Lifer
- Jun 19, 2000
- 18,883
- 641
- 126
Really!? You learn something new every day. How strange to have that just here. I wonder what brought that about?
Ruptga
Lifer
- Aug 3, 2006
- 10,246
- 207
- 106
It might be fun, but this is an investment toward your retirement, right? Make sure you treat it like that, visit the place a few times before they know who you are, go over all their financials, etc.
And I tend to agree about there only being two types of liquor store. Personally I would go with a classy place over a business that is purely about volume and price.
And I tend to agree about there only being two types of liquor store. Personally I would go with a classy place over a business that is purely about volume and price.
Rakehellion
Lifer
- Jan 15, 2013
- 12,181
- 35
- 91
Ruptga
Lifer
- Aug 3, 2006
- 10,246
- 207
- 106
ussfletcher
Platinum Member
- Apr 16, 2005
- 2,569
- 2
- 81
Well it works out well for the State, they tax consumers when they purchase the alcohol and they also act as the wholesaler for liquor.
Rakehellion
Lifer
- Jan 15, 2013
- 12,181
- 35
- 91
mmntech
Lifer
- Sep 20, 2007
- 17,501
- 12
- 0
Red Squirrel
No Lifer
Never mind the liquor store, be the supplier, start up a couple moonshine stills!
That actually does look like fun to do, it's too bad it's illegal.
That actually does look like fun to do, it's too bad it's illegal.
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