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


read 6775 times • 27 replies • posted 7/24/2012 7:39:39 PM

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fletche00
Margins is not it. You are right, margins on beer are by far smaller than liquor/wine, but whoever said "there are $2,000 bottles of wine" When was the last time you saw somebody pop out a $2000 bottle of wine, better, when did you see somebody pop out a $250 bottle of wine? Liquor stores makes it do to variety, you need to make sure you can hit as many markets as possible under one roof. If you carry only beer, you need to have an ample following to sell ONLY beer. Most people like to buy their 6 pack, their bottle of liquor and some wine to go with dinner. Would you rather go to 1 store, or drive to a different store for all 3. If you need something specific, you would go to all 3, but most people just want it as simple as possible, a one stop shop.

-Zach
7/27/2012 5:35:37 AM

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Shagtastic 4:
Originally posted by GT2
Vineyards really donít make that much money....$10 750mL is pretty average for a good wine bottle.


Yellowtail isnít good wine.
7/27/2012 6:24:12 AM

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Bevbro 26:
Originally posted by fletche00
Margins is not it. You are right, margins on beer are by far smaller than liquor/wine, but whoever said "there are $2,000 bottles of wine" When was the last time you saw somebody pop out a $2000 bottle of wine, better, when did you see somebody pop out a $250 bottle of wine? Liquor stores makes it do to variety, you need to make sure you can hit as many markets as possible under one roof. If you carry only beer, you need to have an ample following to sell ONLY beer. Most people like to buy their 6 pack, their bottle of liquor and some wine to go with dinner. Would you rather go to 1 store, or drive to a different store for all 3. If you need something specific, you would go to all 3, but most people just want it as simple as possible, a one stop shop.

-Zach


You would be surprised.
7/27/2012 6:25:28 AM

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Shagtastic 4:
Originally posted by fletche00
Margins is not it. You are right, margins on beer are by far smaller than liquor/wine, but whoever said "there are $2,000 bottles of wine" When was the last time you saw somebody pop out a $2000 bottle of wine, better, when did you see somebody pop out a $250 bottle of wine? Liquor stores makes it do to variety, you need to make sure you can hit as many markets as possible under one roof. If you carry only beer, you need to have an ample following to sell ONLY beer. Most people like to buy their 6 pack, their bottle of liquor and some wine to go with dinner. Would you rather go to 1 store, or drive to a different store for all 3. If you need something specific, you would go to all 3, but most people just want it as simple as possible, a one stop shop.

-Zach


Working at a bottle shop I can tell you that margins are actually the correct answer. When you are only making a limited amount of money on each case of beer you sell you are depending on a lot of traffic coming through your store to make any sort of substantial money.

With margins being what they are you have to sell a ridiculous amount of beer to even cover your operating costs. The majority of bottle shops do not have that kind of customer count to be able to cover it. The other issue is you are getting the same beer as everyone else. It would be rare that you carried something that could not be found at another store in town. The real killer though is margins and customer count.
7/27/2012 6:27:24 AM

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Rosebud butternuts 2396:36
do you ever respond to any of your forums posts?
7/27/2012 6:52:58 AM

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fletche00
Originally posted by Shagtastic
Originally posted by fletche00
Margins is not it. You are right, margins on beer are by far smaller than liquor/wine, but whoever said "there are $2,000 bottles of wine" When was the last time you saw somebody pop out a $2000 bottle of wine, better, when did you see somebody pop out a $250 bottle of wine? Liquor stores makes it do to variety, you need to make sure you can hit as many markets as possible under one roof. If you carry only beer, you need to have an ample following to sell ONLY beer. Most people like to buy their 6 pack, their bottle of liquor and some wine to go with dinner. Would you rather go to 1 store, or drive to a different store for all 3. If you need something specific, you would go to all 3, but most people just want it as simple as possible, a one stop shop.

-Zach


Working at a bottle shop I can tell you that margins are actually the correct answer. When you are only making a limited amount of money on each case of beer you sell you are depending on a lot of traffic coming through your store to make any sort of substantial money.

With margins being what they are you have to sell a ridiculous amount of beer to even cover your operating costs. The majority of bottle shops do not have that kind of customer count to be able to cover it. The other issue is you are getting the same beer as everyone else. It would be rare that you carried something that could not be found at another store in town. The real killer though is margins and customer count.


I see your point, but you have to remember that your consumer is much smaller than "Joes Liquors" across the street. In the Liquor Industry, you are only looking for 1 type of consumer. Where across the Street is looking for 3-5 types of consumers. Your foot traffic due to supply is smaller no matter how you look at it. People would rather shop at the place where they can get everything they want, all at once. True there are some people that only drink beer, but do a survey, and you will find that number to be extremely small compared to the whole market of liquor buyers. So, you need to have quite the following of beer people to be able to compete and stay afloat in an aggressive market.
7/27/2012 6:59:54 AM

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premium
NobleSquirrel 3437:209
Originally posted by Shagtastic
Originally posted by GT2
Vineyards really donít make that much money....$10 750mL is pretty average for a good wine bottle.


Yellowtail isnít good wine.


Yellowtail doesnít cost $10. There are fantastic $10 bottles of wine, so much so that wine is a better deal than beer, more often than not, assuming you know what youíre looking for.
7/27/2012 7:50:52 AM

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