Do you want to start a liquor store business and want to know the cost? If YES, here is a cost breakdown for opening a liquor store and the profit margin/ROI.
A liquor store is a retail shop that that is licensed to sell prepackaged alcoholic beverages usually in bottles to customers who are likely to take them home or elsewhere to consume.
It is important to note that State regulations vary widely. Most states in the united states of America have laws that clearly define which alcoholic beverages must be sold in specialty liquor stores and that which may be sold in other venues.
The liquor, beer and wine industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in a street corner like the average mom and pop business or you can chose to start on a large scale with several outlets in key cities.
The Estimated Cost Breakdown to Open a Liquor Retail Shop
When it comes to starting a liquor retailing store, the major areas that you should look towards spending the bulk of your cash is in renting or leasing a standard store facility. These are the key areas where you are expected to spend your startup capital;
- The Total Fee for Registering the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
- Marketing promotion expenses for the grand opening of the liquor store in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580
- The cost for hiring a Business Consultant (Including helping your write a business plan) – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $35,600.
- The cost for shop remodeling (construction of racks and shelves) – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for Start-up inventory (stocking with a wide range of liquors, wines, beers, tobaccos et al) – $35,000
- The cost for the purchase of storage hardware (bins, rack, shelves, food case) – $3,720
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
- The cost for serving area equipment (plates, ash trays, glasses, flatware) – $3,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase and installation of CCTVs – $2,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of launching a Website – $600
- The cost for organizing opening party – $2,500
- Miscellaneous – $2,000
From the rough estimate as listed above, you would need a minimum of one hundred and eighty – four thousand seven hundred USD ($184,700) to establish a medium – scale but standard liquor retail shop business in any city in the United States of America.
Please note that this amount includes the salaries of all the staff for the first three months of operation. These are some of the products that you will find in an ideal liquor retail store;
- Beers (Bud Light, Coors Light, Miller Lite, Budweiser, Michelob Ultra-Light, Natural Light, Busch Light, Bush, Redds Apple Ale, Sierra Nevada Pale Ale, Keystone Light, Pabst Blue Ribbon, Bud Light Lime, Bud Light Platinum Lager et al)
- Locally Crafted Beers (Pale Beers, Amber Beers, Dark Beers, Hebrew Beers, Gluten Free, Organic Brews, Cider et al)
- Distilled spirits
- Non – alcoholic beverages
Please note that this is a rough estimate and we usually advise our readers who are interested in opening a liquor retail shop to go to the market or directly contact wholesalers and suppliers of the types of liquors and drinks they would need in the shop in order to get the real time prices of these items. The truth is that if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.
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