$20,000 to $50,000
People also ask
Is owning a liquor store profitable?
Unless you live in a state where all liquor sales are state-run, opening a liquor store is a popular option for a lot of ambitious entrepreneurs. But is owning a liquor store profitable? Liquor store owners can take a variety of different strategies when opening a new shop. Margins on wholesale alcohol are also reasonably high.
What are the profit margins for liquor stores?
Profit margins for liquor stores range based on a number of factors, including your overhead costs, inventory, suppliers, and clientele. Cheaper alcohol will have lower margins than high-end items. According to one in-depth study of liquor store operations, a well-run shop should net between 15% and 20%.
What are the expenses of a municipal liquor store?
Common expenses include rent, inventory, employee salaries, liquor licenses and marketing. Municipal liquor stores must turn over a portion of their earnings to their home cities. For instance, of the $2,780,000 earned by Northfield’s municipal liquor store in 2008, $131,280 went to the state.
Is it hard to open a liquor store?
Doing so for an entire liquor store is even harder. Business owners should be prepared in their business plan to look for funding for getting the proper amount of inventory prior to opening. And once open, the collective inventory on your shelves will remain high. It鈥檚 hard to manage your inventory and ensure that you鈥檙e maximizing your profits.