With no memes, someone explain to me why buying a liquor store to be an owner/operator wouldn't be a decent idea.
I have around $30k that I can use. My brother does too, and we'd get a business loan from a bank. We'd operate the store ourselves for most of the time, and our parents would work as well. All 4 of us are close, and would completely have the business as our number one priority. We might hire one or two part-time workers.
We have little experience in this field. I work hard, and am sick of it. We both want to quit working for other people, and start putting our time toward something that is at least our own. We both aren't scared of working long hours.
With relatively no experience, and with around $50k before any loans, why couldn't this work as a way to earn a living for ourselves, after a really tough learning curve first couple of years?
Are you planning to buy into an existing one or starting your own?
>>1179713
Just brainstorming and looking into the state of the liquor stores for sale in our area (Alberta Canada), but buying an existing store is the way it's looking right now.
It's a nonelastic good, meaning people buy alcohol no matter what. Solid purchase.
>>1179815
This.
There is a reason you find them in every strip mall in north america
>>1179696
>4 people working in a liquor store
Enjoy that 20K salary.
Usually it's a poo in loo working there w/ his wife making $80K a year.
Maybe in a more expensive location you could do this, otherwise don't expect to make much.
Seems alright.
But the drawbacks include: drunks, thieves, and people who will pull out a gun one night and blow your head off.
It just doesnt seem that profitable to me.
>>1179854
If he opens in an area not filled with trash he would have a less chance of dealing with that at the price of a more expensive store
>>1179696
Check your local regulations, here in Australia laws, regulations and taxes cut hard into profits... It highly favors massive alcohol store chains because the only way you can make decent money is from buying alcohol in bulk (and in bulk i mean buying several pellets at once) and thus these big chains can easily out price the small local alcohol shops. Not to say it cant be done, but many of the small local shops are run by immigrants that are happy to get by on very low wages.
Check regulations, they are an absolute bitch and law enforcement on them is very strong.
Also, in the US bottle shops are very dangerous work environments, very, very high rates of armed robbery.
>>1179829
We would only hire outside help for very part time hours, and truthfully, we could probably get one of our retired aunts/uncles to fill in for select days when really needed, otherwise my brother and I would operate the store most of the time. My parents are retired as well, and just want to help with what could become a family business. They claim they don't even want to get paid, though I wouldn't allow that to happen, but it's not like they'd be working more than 20 hours a week.
>>1179854
This is obviously a con, but the area we live in, and the areas we'd specifically contemplate buying a store in would be low crime areas, though I know that isn't guaranteed.
As far as not being that profitable, we're really not looking to get rich off this, we were hoping this could be a good family business to help us all worth together, work for ourselves, and make a $55-60k/yr living (my brother and me, that is), I wish I knew if that was likely or not
I work at a Chain liquor store with 4 employees OP. We do about $55,000.00 in sales weekly during season and have about 4 months of $35,000.00 - $40,000.00
The manager makes $20 an hour and the full timer makes $10 an hour. Two part timers make 8.50 and we get about 120 - 140 hours a week depending on how hard corporate wants to fuck us.
We are by the beach and exceptionally busy and generally get fucked with how little they pay us for how much work we do(except for the manager).
Should be profitable if the location is good.
>>1179696
Ive worked at multiple liquor stores. Get used to the homeless hanging around, especially if you sell cheap vodka / 40s / tall boys etc.
Get used to calling the police. Get friendly with them.
Get good insurance.
We never had a gun pointed at us, but I mean just have a panic button. And give them the money in the drawer. And get some cameras. No big deal if you have insurance.
Also you will probably make a lot of money. Even if it is a local neighbor hood joint and not a big chain store. Locals are the best. Treat your regulars nice and they will come in often.
>>1180064
55k sales a week is really really a damn lot for one store. Impressive.
I work with other products and I can come up to those kind of sales only 4 weeks a year, the rest of the year it goes even down to 2500 a week.
However the profit margin in my products are close to 70% where as alcohol is probs around 30%
how many liquor stores are in your area? how will you get people to go to yours instead of some one else? be unique.. that is if you are becoming your own liquor store not a chain.
>>1179696
1. Most existing liquor stores are in shit buildings because they existed before meaningful building codes and zoning existed.
2. You are selling an age controlled product and you will have lots of youngsters coming up and trying to buy liquor off of you. Constantly.
3. You are selling something that is almost entirely a cash business. You will be dealing with loads of cash and most tax reporting authorities will be looking at your returns with questioning eyes.
4. Liquor stores usually have restrictions on how late they can be open or what signage you can put outside. You may not have any ability to create brand recognition.
5. Your distributors will constantly come and try to sell you more liquor than you both could want or sell. You will learn your drivers names and they will talk you up endlessly to buy more.
6. You won't make much money unless you also sell stuff like drug paraphernalia and common household goods. You will probably have a lot of cops coming and talking to you too.
If you are willing to deal with the bullshit you can pull in quite a bit of money. Just be ready to have your life sucked out of you.
>>1181587
>1. Most existing liquor stores are in shit buildings because they existed before meaningful building codes and zoning existed.
Getting inspections done are the exact same as they are for houses wouldn't they be? So you'd know most of what you're looking at when you take over the building?
>2. You are selling an age controlled product and you will have lots of youngsters coming up and trying to buy liquor off of you. Constantly.
>3. You are selling something that is almost entirely a cash business. You will be dealing with loads of cash and most tax reporting authorities will be looking at your returns with questioning eyes.
>4. Liquor stores usually have restrictions on how late they can be open or what signage you can put outside. You may not have any ability to create brand recognition.
I know the regulations for opening/closing on each days in my city, but never thought much more past 'We need singnage" for signs. I'll have to look into that for sure.
>5. Your distributors will constantly come and try to sell you more liquor than you both could want or sell. You will learn your drivers names and they will talk you up endlessly to buy more.
I currently work t a job that's basically this, but not with alcohol. I would think a good liquor store owner would over time figure out what and how much profits the most for his store, and take a few risks on new products here and there? It can't all be a big gamble?
>6. You won't make much money unless you also sell stuff like drug paraphernalia and common household goods. You will probably have a lot of cops coming and talking to you too.
There's regulations in my city that don't allow liquor stores to sell most of that unfortunately.
As for the "small" hassle problems like underagers and cops around, not to be rude, but I don't care too much. As in, that can all be handled and I'd love to exercise due diligence for something that is mine, rather than doing it already, for someone else.
>>1182994
Those shitty liquor stores in shitty areas do the best business by volume and alcoholics. If you want to be in a nice neighborhood, then you're going to want someone that knows something about liquor--either hipster beer, wine, cocktails, or preferably all of it. If they come in and you guys "Uhhh..." over your most important products in a nice area, then your customers aren't going to come back. You want to appeal to Sally throwing a party, and Bill inviting the coworkers to a dinner party, and those Wencl who wants to enjoy several hipster beers everynight (protip: he is also an alcoholic but is too good to go to the shitty liquor store). Also, minors often hit up grocery stores (if they sell liquor in your area) and the gas station far more often, but you're still gonna have to be diligent. You do good, and treat the cops well, and pass their little "fake legal/actually a minor" tests, and you will be fine. Getting a license is a bitch, though.
Getting a liquor license is a pain in the ass, my folks own a bar. You're better off asking locals because different states have different costs and levels of difficulty.
>>1179888
I fucking hate taxes
>>1183058
DO you like roads, hospitals, schools, police, water, power etc?
>>1179888
>Also, in the US bottle shops are very dangerous work environments, very, very high rates of armed robbery
Wtf do you know, aussie?
buy a property near a dry cleaners or gas station. get a phase I ESA done, buy if no RECs are identified. and buy a Phase I from a local, no-name company, preferably if they dont do Phase II investigations or drilling. they just want the money, 9/10 times they wont recommend soil borings.
sue them if the city ever comes after you, save money from buying impacted property.
>>1180064
>120-140 hours/week part time.
Assuming you mean between the two of you, how in the fuck is that part time?
Liquor stores suck for a few reasons, chief among them is the less risk you want of getting robbed (aka better location) means not only higher overhead with rent but also lower sales. Middle class people and up with stable careers typically dont occupy high crime neighborhoods (duh), but that makes those neighborhoods also higher income. Higher income neighborhoods do not go to the liquor store quite at the same rate low income neighborhoods do. higher income people buy their beer/wine at the supermarket with the groceries. supermarkets know this, and their beer/wine stock is usually very impressive.
but the ghetto doesn't even have supermarkets sometimes and the people living there looovvee to drink. problem is an attempted robbery is inevitable in these areas.
rough go.
>>1183134
Supermarkets can't sell liquor where I am, in Alberta. Lots of the big supermarkets still have their own liquor stores just outside, or in close proximity, but I don't think it's nearly as effective for them as having liquor directly inside the big supermarkets seems to be from what I've read.
>>1183258
Have you looked at this?
http://www.aglc.ca/pdf/liquor/5204-1.pdf
Most importantly
>What is the minimum case quantity to be eligible for the wholesale price?
>To purchase liquor at the wholesale or “wholesale equivalent” price, a minimum order of 25 cases must be delivered.
You're ether going to have shitty variety, or higher prices.
For the amount of start up funding you have, this is a bad idea. You would be better off just buying Liquor Stores N.A. if you want to invest in Alberta alcohol sales. It's a rigged system to make the government money.
If you and your brother are serious about being entrepreneurs and have 50k in cash, look into something else. Landscaping, moving, trucking and masonry would all be a lot easier to get into.
