Liquor stores are by far and away the most popular businesses that I sell. Whenever I list a liquor store of any size, I am bombarded by emails and phone calls. Many of these people are financially unqualified or tire kickers. But some are the competition that are just checking to see what their business might be worth based on what another liquor store owner is asking for his or her business.
Buyers with adequate funds to buy a liquor store are an interesting breed. Whenever I ask them why they want to buy a liquor store, I normally get answers like “it’s a cash business” or “everyone drinks in good times or bad times” or “it’s a real people business where you get to know your customers really well.” Never do I hear “I expect to earn a fortune” or “I’m going to squirrel away tens of thousands in unreported sales and live beyond my discernable means so the IRS can nail me when they audit my business.”(Now I’m just kidding – or am I?)
The reason that I love to sell a liquor store is because if the buyer listens to me, he or she will become very wealthy and will contact me down the road to resell the store for much more than what it was purchased. To be truly successful at owning, operating and selling a liquor store, you need to do four things.
Number one is to acknowledge every customer when they enter your store. Immediately ask them if there is anything you can help them find. If they say yes, you better have it on the shelf, because if you don’t, you may never see them again. Once a customer finds what they want at another location, the chances are they will continue to patronize that establishment.
Number two is never let a customer leave empty handed. If they could not find their first choice, ask them what their second choice might be. Offer it to them at a deep discount and throw in some chips or other snacks. This gesture will salvage the relationship and allow you to meet the customer’s needs and wants the next time around.
Number three is promise to order their preferred beverage whether it is wine, liquor or beer. And most importantly, get their phone number and let them know you will be ordering the product immediately and calling them the day it arrives. And make sure that you do call them the very day it does arrive. When they stop by to purchase the item, surprise them by giving them a big discount as a “tangible apology” for disappointing them the first time. You cannot imagine the goodwill you will create and the word of mouth and repeat business this will create.
Number four is the most important thing to do first, but I have saved it for last. As we all know, in real estate, it is location, location, location. In the liquor business, it is inventory, inventory and more inventory. The key to success is to have enough working capital and physical space to take advantage of volume discounts from distributors. You want to be able to purchase the most popular wines and liquors at the greatest possible discount, and that can only be done in large quantities.
To effectively compete against the large superstores, you must be able to make great purchases and offer superior customer service. A customer will pay a little more if they like you and feel important when they enter and leave your store.
And now for a few of the real marketing freebees. To think outside the box, you need to do some of the following that most competitors do not even think of doing. Have a wine tasting once a month. Have a certain percent discount for every fifth purchase. Set a minimum for the first four purchases but have no maximum for the fifth purchase where the customer receives the discount. Insert a flyer in each bag thanking the customer for their business and asking for any feedback that can help you make their shopping experience more pleasurable in the future.
Author’s note. After helping sellers and buyers for more than 20 years, I have found that honesty, integrity, full disclosure, patience and a willingness to consider various alternatives makes the probability of success for all parties very high.
Loren Marc Schmerler, CPC, APC is the former business advice columnist for Sam's Club. He has been a business broker since 1986 and works with business owners and business buyers in every state of the country. If you need assistance selling or buying a business anywhere in the United States, you can reach Loren at 404-550-1417, 24/7/365.
|
