Liquor Store Start Up?

[Lilly P]

I do really love the idea of the kiosks but I don't think I can afford the retail space to make that happen here. Also I'm not sure if that really solves the problem of not having to deal with anybody. Underage drinking is a huge problem down here so the security guard would have to check everyone's ID. I could swipe my ID and let in three 15 year olds, so I think that would have to be monitored pretty closely. Setting up a beer vending machine on the beach would be huge but they won't issue any Beach vendor licenses here.

There are alcohol apps, like grizzly (I think they do delivery if I remember) already being used in some locations. Not here though. But perhaps I could work in conjunction with an existing one.

 

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[ddzc]

@MidwestLandlord on fire with his posts, such solid advice.

You're taking a lot of risk here. I don't think a drive up and free cooler packs are enough reason to even consider opening this (don't mean to be so harsh). In addition, you mentioned two heavy hitters which are down the street from you and closer to the intersection, why would they come to your store instead? I'm not sure if this beach is in the US or an island in Asia, etc, but if it's in the US, most likely many of the people going to the beach are locals and have been going for ages and will default and always go to the same liquor store due to natural habits. If I'm chilling at the beach and run out of booze, I'll just walk over to the one closest to the beach and grab what I need.

I'm a heavy beach goer and personally I've never had the need to go to a store nearby. I always bring a cooler with ice and my booze, and I'm set for the day. If I make it a weekend beach venture, I just go to the convenience store the next day, buy ice for a couple $ and repeat.

If you do the drive thru option, I suggest getting an app created and have your full inventory in there for people to browse. Add a few upsells before they finalize the order. Once the order is finalized, have a notification advising them that the order is ready for pickup at any time and done.

 

[StevieB]

Proves my point above about how people actually buy a commodity.

Convenience over all else for the basics.
Combined shopping trips at Walmart.
Finding a destination "do a bit of diggin'" for the stuff a normal liquor store wouldn't carry.

Perfect, thank you.

I'm going to go off the beaten path here, and ultimately think that @MidwestLandlord has given some very good pointers.

However this is not set in stone.

One example is Starbucks.

Do people go out of their way to go to Starbucks?

You bet.

Could they have simply gone to McDonalds and purchased a coffee their instead?

You bet.

They also paid a lot more for that Coffee at Starbucks, went out of their way, paid a 300% price increase.

So why did they do it?

 

[ClaytonAlbright]

In other words even if it's a commedity, if you have usp, people will still go to you even if it's out of their way. Something as simple as a coffee, just like liquor, you can see this is true.

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[MidwestLandlord]

Could they have simply gone to McDonalds and purchased a coffee their instead?
You bet.
They also paid a lot more for that Coffee at Starbucks, went out of their way, paid a 300% price increase.

So why did they do it?

I talk about McDonald's versus Starbucks here: Pricing your product

In other words even if it's a commedity, if you have usp, people will still go to you even if it's out of their way. Something as simple as a coffee, just like liquor, you can see this is true.

Of course.

But,

Do people go out of their way for a bacon, egg, and cheese sandwich from Starbucks? I don't think they do. Why? Because it's generic, it's basically a commodity, even if it's from Starbucks. (although Starbucks is working hard to change that mindset)

They go to Starbucks for Starbucks Coffee which is a product by itself, and not just a "coffee". The brand IS the USP.

So it's not really a fair comparison, Starbucks stores versus liquor stores. Ever see Starbucks bottled or canned coffee in a c-store, airport, or grocery store? THAT would be more of a direct comparison. To get Starbucks bottled beverages to sell, Starbucks partnered with PepsiCo (through the North American Coffee Partnership they created) and used Pepsi's expertise in mass market volume sales to develop and sell it. Starbucks executive were smart enough to realize that they were getting away from their USP (Starbucks location/experience) and needed to sell their product in a much different way.

You buy Starbucks coffee at a Starbucks ONLY.

You buy a Starbucks bottled coffee ANYWHERE. <---doesn't matter where, just so long as it's convenient

Likewise, people will go out of their way for a specific liquor (Crystal Head Vodka is a good example)

But they will buy Crystal Head Vodka from the most convenient place that is not hugely out of line in price. (it's available in virtually all liquor stores now)

With alcohol, a specific product might have a USP, sure. Plenty of examples of that. But the store itself having a USP is MUCH harder to do.

 

[MidwestLandlord]

In other words even if it's a commedity, if you have usp, people will still go to you even if it's out of their way. Something as simple as a coffee, just like liquor, you can see this is true.

Another thought for y'all.

I've sold commodities at brick and mortar locations since I was 19 years old, so a bit of experience here. (including coffee and liquor)

In order to have a USP for something so generic like coffee or alcohol, you have to get people to believe that the product is different from the rest (different in a good way obviously)

People have to believe it to the point that they will argue with those that disagree with them.

If they believe the product is superior, they WILL go out of their way to buy it, and they WILL pay more for it.

In China, Pabst Blue Ribbon beer sells for roughly the equivalent of $44 USD PER BOTTLE. Why? Because they believe it is a fancy superior USA import. In the USA you'd be nuts to pay $44 for PBR horse piss, because you don't believe it is worth that much.

But again, this is PRODUCT USP, not LOCATION USP.

Can anyone even name a liquor store with a USP that is not location or prices?

 

[StevieB]

Another thought for y'all.

Can anyone even name a liquor store with a USP that is not location or prices?

You know what's funny, is I recently had an experience that relates to this.

I went to Panama City Beach area on vacation recently, and while my Vietnamese girlfriend and her family were eating at a Vietnamese restaurant, I just happened to randomly walk to the liquor store across from the restaurant. When I walked in to purchase some liquor, after walking around for a while, I thought, wow how cool is this place.

Why?

They didn't just sell liquor and wine, but "fine" cheeses, food, and all sorts of other various products. I'm a huge fan of cheese and wine, especially those funky cheeses you can usually only find at a grocery store (sometimes not even that). I remember walking out of that place thinking of how cool it is and wishing there was one close to my house.

The reason being -- convenience. Not only could I get alcohol but cheese and dinner all in once place. I'd go buy from them even if I passed a few other liquor stores on the way.

A few weeks later I was down in the same area scouting for a new rental property. It was then that I found out I just happened to stroll into the most popular liquor store in the area among the locals. More than once did I hear have you been to XX? Everybody loves XX. (For the life of me can't remember the name though).

In GA there's a gas station that's absolutely exploding. I go there almost daily, and pass two other gas stations on my way. Every time I go the place is crowded and I think to myself how much money the owner must be raking in.

So why on earth do I drive by 2 other closer gas stations to get to this one? Price?

Yes and No.

I don't even buy gas 95% of the time I go.

Convenience and price.

Not only can I purchase an eggs & sausage bowl, with low carbs but also 0 calorie 20oz drink refills, all for under $4. They have a kitchen there and sell pizza, breakfast bowls, sandwiches, and various other foods that put to shame the other gas stations selections.

I think that's the reason Wal-Mart, Fry's, and Target do so well. Not only do they have good prices but they offer convenience of not having to make multiple trips to get various things. That's why I pass Radio Shack to go to Fry's, it's why I pass the mom and pop's store to go to Wal-Mart. It's not necessarily just price but the convenience it offers. I'd be willing to pay a little more or the same if convenience comes with the experience.

 

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[amp0193]

Can anyone even name a liquor store with a USP that is not location or prices?

Spec's Liquor in Texas (and maybe other states?)

They're tag line is "Wine. Spirits. Finer Foods".

I think the USP is on huge selection, but not only on liquor, but you can get all the food you need for your party as well.

I've never been to a Spec's, but they are super visible, and you can't avoid their advertising if you live here.

 

[StevieB]

Just remembered the name - Carousel Liquor Store in Panama City Beach.

QuckTrip is the name of the gas station in GA, if anyone was curious.

So a good USP for a liquor store is providing convenience, but that comes with a high price to stock more inventory, not to mention square footage.

 

[Lilly P]

So my would be location just got hit by a hurricane taking out my would be competition. TBD if they will rebuild and sell. This is the redneck Riviera. People here are looking for cheap and convenient.

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