If you do it correctly, owning and operating a liquor shop might be one of the most reliable business options. But compared to other types of businesses, the alcohol sector has a lot more obstacles to overcome, mostly because it must adhere to all applicable local, state, and federal regulations.
If you want to start a liquor business, you're daring, confident, and creative. Running a liquor store offers more pros than cons. So, here are some liquor business benefits and downsides.
Let’s find out!
Pros and Cons of Running a Liquor Store
Pros:
- Recession-Proof
- Stable Inventory and Product Shelf-Life
- Low Competition Due to State Regulations
- No Need to Advertise
1. Recession-Proof
Recession-proof liquor outlets exist. The desire for alcohol soars at times of economic uncertainty or collapse. Your bottom line is protected no matter how bad the economy gets since drinking is frequently used as a method to unwind a little.
2. Stable Inventory and Product Shelf-Life
Alcohol companies have longer shelf lives than grocery stores or bakeries. Many liquors don't expire, and some need to be aged to taste better. You may also buy more drinks in bulk without worrying about expiration dates. Some liquors taste better after aging.
3. Low Competition Due to State Regulations
As part of the 21st Amendment, the federal government allows each state to control alcohol imports, distribution, and sales. Most states restrict liquor shop numbers, especially in small towns. As a liquor shop owner, this is to your advantage. Obtaining a liquor license is difficult, but once you obtain it, it's rare that additional liquor stores will open nearby.
4. No Need to Advertise
Liquor shop owners gain from selling things that manufacturers market for them. Instead of paying tens of thousands of dollars on adverts each year, you may use multi-million dollar advertising expenditures to attract people to your shop.
Cons:
- High Inventory Costs and Initial Investments
- Alcohol Distribution is Highly Regulated
1. High Inventory Costs and Initial Investments
The initial setup and real-estate costs are quite high, and so are the inventory management costs. If you don’t have a strong financial backup, you won’t be able to do your startup. Make sure you fund your business appropriately considering all the resources you need.
2. Alcohol Distribution is Highly Regulated
As mentioned above, the state restricts liquor distribution, particularly the number of retailers in a given region. Additionally, each US state's Alcohol Control Board regulates alcohol retail sales. These tight requirements may challenge new business owners.
These are some insightful pros & cons of running a liquor store. That’s why many liquor store owners are going online to run business globally, sell liquors & make huge profits.
So if you’re planning to start selling alcohol online then it's the right time for liquor store owners like you to set up your business online, list these liquors and sell globally. To take your liquor business online, visit Esplanda, a one-stop marketing services for liquor store to build liquor websites & applications in the next 10-mins. Contact Us today and get a complete solution for liquor store and application for Free.
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