Retail

Liquor Stores

Get in your car and drive out to see this gem of a liquor store. Just 6 months old, and it grossed $65,000 for November and $89,000 for December. July was $40,000 and every month thereafter increased $5,000/mo. The owner has organized a beautiful store stocked with nearly a quarter million of inventory. When a customer walks into the store, they find what they want and leave with a purchase. You would not believe the selection of wines including: Cakebread; Silver Oak; Stags Leap; Jarvis; Sequoia Grove; Sterling Napa; Santa Marguerita; Fine Pinot Noir: Cambria; A to Z; King Estate, etc. You would not believe the fine liquors including: Rowans Creek Bourbon; Noah's Mill; Pearl Vodka; Stoli Elite Vodka and Grey Goose Vodka, Belvedere Vodka, Ciroc Vodka, Hangar One Vodka, where the sales keep increasing each month. Because this store does so much volume, it can buy FINE wine by the case instead of by the bottle. This allows them to get a 30% gross margin on wine and 19.5% gross margin on liquor. On the day I was at the store there were 8,600 bottles of wine and 11,000 bottles of liquor. There were 2,000 units of beer with a gross profit of 15%. The store hours are 10 - 10 Mon - Thur and 10:00 - 11:00 Fri and Sat. There are 2 part-time employees who earn $7 or $8/hr. for 20 hrs./week each The overall gross margin in the store is 21%. There is a digital security system with 8 cameras, a 1 gigabyte hard drive and the ability to record a month of activity. There is remote monitoring so the owner can watch the employees when he is not present. There is a new 12 door cooler that is 24' long and 12' deep. It can hold up to $70,000 worth of beer. The software can break down sales by category for any period of time. Now let's answer the 2 questions you probably have. How did he arrive at his price? He took 3 times estimated 2009 net profit of $120,000 and added the guaranteed inventory of $240,000.