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Why dont beer stores do as well as wine and liquor stores?

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vollont
19:39 Tue 7/24/2012

I dont find beer only stores that often in NYS. There arent that many of them near me and some of them closed. But every single town has at least one wine and spirits store. Why dont beer stores do as well as wine and liquor stores if more people drink beer and more beer is consumed than wine and liquor?

 
DYCSoccer17
premium
beers 3499 º places 324 º 19:43 Tue 7/24/2012

Because the shit macro beer that 90% of what Americans drink is ubiquitous and can be found at any gas station? Or perhaps because states like NY only allow wines and spirits to be sold in designated Liquor stores?

 
502Che
beers 999 º places 47 º 19:45 Tue 7/24/2012

wine and spirits can sit on the shelf for a very (for liquor, unlimited) amount of time before going bad. Beer stores, by design, tend to stock a large selection. These selections go bad after a comparatively short amount of time. Having a small enough amount of each beer to (nearly) guarantee fresh sales and (almost) prevent old stock is a very hard thing to manage. Simple enough, no?

 
OCBeerSociety
19:46 Tue 7/24/2012

Simple... no mark-up on beer.
Beer distributors tack on 30%+ onto whatever the brewery charges them, so it leaves only a 20-30% mark-up to stay compenetive with other retailers who also care wine & sprirts where the mark-up is in soime cases 200% which allows them to make a much larger profit... Itís why places like BevMo can offer deals on wine like "buy one get one for 5 cents" but never on beer.

 
DietPepsican
premium
beers 1534 º places 56 º 19:54 Tue 7/24/2012

Originally posted by OCBeerSociety
Simple... no mark-up on beer.
Beer distributors tack on 30%+ onto whatever the brewery charges them, so it leaves only a 20-30% mark-up to stay compenetive with other retailers who also care wine & sprirts where the mark-up is in soime cases 200% which allows them to make a much larger profit... Itís why places like BevMo can offer deals on wine like "buy one get one for 5 cents" but never on beer.


U jokin?

 
brewtopian
beers 2 º 20:07 Tue 7/24/2012

You wanna know why there are more wine and liquor stores than beer stores? One word, margin. The average margin for beer is 30% or less. Wine and liquor on the other hand can have margins from as little as 50% on a cheap bottle and upwards of 400% on a rare or limited release bottle.

On top of the return is the incredibly low cost of a bottle of beer since a 30% margin on a bottle of beer that cost $1 wholesale compared to a even a cheap bottle of wine with a wholesale cost of $5 much less a $30 or $40 bottle.

Ultimately it means that for a beer store to make enough profit to pay the owners and staff they need to do big volume. Big volume typically means a big space. The bigger the space the higher the inventory and the higher the cost of operating. Without big volume it makes operating a beer only store pretty tough.

There are some bright spots to operating a beer only store. The biggest is cost of inventory. Beer is incredibly cheap compared to wine or spirits so your cost of sale on your inventory can be far far lower than the alternatives. For example, our store stocks about 800 different beers and ciders at any given time but our inventory is typically between $20,000 and $28,000 depending which special releases are out at that time. An equivalent amount of wine or spirits would cost hundreds of thousands of dollars making opening a beer store far more feasible for the average person.

Our stores are beer and cider only stores that carry no macros. The closest thing you could say to a macro that our stores stock are brands like Widmer and Redhook. Weíve proven that its possible to have a successful operation without wine or spirits but we had to change the model up considerably. First we do on premise sales as well as off premise so you can come in and have a glass off the taps or crack a bottle out of the cooler. The next big thing is we do food. Weíve made a big impression on people with our food and that has let us convert a lot of non-beer people into dedicated fans of Brewforia.

The last thing that we do that is different from most of the beer stores Iíve visited is we provide service from a educated staff of beer geeks. We make a point of training them to not be judgmental and to be aware than not every customer is as far into their craft beer journey as themselves and so they need to be patient and respectful.

 
GT2
premium
beers 9410 º places 661 º 20:27 Tue 7/24/2012

Vineyards really donít make that much money....$10 750mL is pretty average for a good wine bottle.

 
Bevbro
beers 26 º 20:36 Tue 7/24/2012

Beer only stores never make it. Beer expires and liquor doesnít. There also isnít $2,000 bottles of beer there is wine. And yes there is a mark up on beers. Especially Belgians because they have a longer shelf life usually and tend to sit on the shelf longer. Anyway I look at it I canít see beer only stores ever surviving when you can go down the street and grab a bottle of Johnny Walker and sme beer.

 
ContemplateBeer
beers 1777 º places 137 º 05:02 Wed 7/25/2012

Originally posted by Bevbro
Beer only stores never make it. Beer expires and liquor doesnít. There also isnít $2,000 bottles of beer there is wine. And yes there is a mark up on beers. Especially Belgians because they have a longer shelf life usually and tend to sit on the shelf longer. Anyway I look at it I canít see beer only stores ever surviving when you can go down the street and grab a bottle of Johnny Walker and sme beer.
This place is doing aiight.

http://louisvillebeerstore.com/

 
FrumptyDumpty
05:13 Wed 7/25/2012

Originally posted by Bevbro
Beer only stores never make it. Beer expires and liquor doesnít. There also isnít $2,000 bottles of beer there is wine. And yes there is a mark up on beers. Especially Belgians because they have a longer shelf life usually and tend to sit on the shelf longer. Anyway I look at it I canít see beer only stores ever surviving when you can go down the street and grab a bottle of Johnny Walker and sme beer.


You apparently have never been to many beer only stores. There are loads that survive. Your whole post is stupid.

 
cgarvieuk
premium
beers 17646 º places 212 º 05:23 Wed 7/25/2012

Originally posted by FrumptyDumpty
Originally posted by Bevbro
Beer only stores never make it. Beer expires and liquor doesnít. There also isnít $2,000 bottles of beer there is wine. And yes there is a mark up on beers. Especially Belgians because they have a longer shelf life usually and tend to sit on the shelf longer. Anyway I look at it I canít see beer only stores ever surviving when you can go down the street and grab a bottle of Johnny Walker and sme beer.


You apparently have never been to many beer only stores. There are loads that survive. Your whole post is stupid.


+1

there are definitly beer onyl store. The shop just need to undersatnd its market, and taylor there shop acordingly