Business options. Bottle shop, feasability?

My Grandfather used to own a bottle shop in which he retired on before his death and he was a very wealthy man.

I've been considering starting a business that would allow me the freedom to have a hired manager after its up and running and bottle shop seems like one good idea to me at this point in time.
I don't have the ability, that I know of? to purchase an outlet as yet so would have to pay rent for now, but have no idea how much licensing costs, or whats involved?
Just thought I'd put the idea out there to discuss start up costs.
Has anyone any experience with this trade before?
 
My Grandfather used to own a bottle shop in which he retired on before his death and he was a very wealthy man.

I've been considering starting a business that would allow me the freedom to have a hired manager after its up and running and bottle shop seems like one good idea to me at this point in time.
I don't have the ability, that I know of? to purchase an outlet as yet so would have to pay rent for now, but have no idea how much licensing costs, or whats involved?
Just thought I'd put the idea out there to discuss start up costs.
Has anyone any experience with this trade before?

Very very low margins and too much competition. You end up buying your stock from Safeway, its cheaper than the suppliers.

GG
 
Hmmm, off to a bad start

I was thinking about a boutique shop, because there are none where I'm from, but plenty of alcoholics

We have the two main competitors, and 2x or 3 independent chain drive-thrus, which are always packed.
 
I was thinking about a boutique shop, because there are none where I'm from, but plenty of alcoholics

We have the two main competitors, and 2x or 3 independent chain drive-thrus, which are always packed.

But what would you sell that would be cheaper than the competitors, or do people want stuff they can't find at the competitors? Unlike restaurants, just because it's packed doesn't mean there's excess demand for another outlet.
 
My Grandfather used to own a bottle shop in which he retired on before his death and he was a very wealthy man.

I've been considering starting a business that would allow me the freedom to have a hired manager after its up and running and bottle shop seems like one good idea to me at this point in time.
I don't have the ability, that I know of? to purchase an outlet as yet so would have to pay rent for now, but have no idea how much licensing costs, or whats involved?
Just thought I'd put the idea out there to discuss start up costs.
Has anyone any experience with this trade before?

The only problem would be the cost factor for the licensing and how do you compete with the "Big" high volume outlets,there is one standalone
up market bottle shop in my area with over 250 different types of beer but i don't think they do very well..imho..willair..
 
Hmmm, off to a bad start

I was thinking about a boutique shop, because there are none where I'm from, but plenty of alcoholics

I know business is business.
Plenty of alcoholics around to support your business may not be the best reason to get into this business though.
Although, it does seem like it would be a very easy business to operate provided the figures work out.

In the longer term, a more productive or win/win type business may satisfy you more, personally and financially.

Good Luck
 
Thanks for your replies so far.

To Spider, no, my ideal business would be one I rarely have to oversee, I'd rather just take the money and travel the world instead.
To all others, you know, I'm open to suggestion.. :D
I was more after start up and ingoing costs to have a liquor license.
Or other ideas.

Thank you.
 
I used to work in the industry from a distribution stand point.

What I can tell you is that credit for stock is hard to come by. I can recall our company's credit controllers having weekly meetings with the oposition distributors to determine which businesses were in credit stress (mostly bottom feeders) so terms could be changed to Pay before delivery or refusal of orders if things were really bad.

From a start up perspective, to obtain credit with any liquor wholesaler, I'd suggest you'd need a directors guarentee and soem water tight security just to gain terms of 14 days, otherwise you will have to pay before delivery. Getting credit terms is like pulling teeth.

Like others have said, if you are an independant its probably better (and cheaper) to purchase through Safeway. Some "semi" independants join multiple buying groups/banner groups and 'pick' which brand they were going to buy under that week. That was being tightened up when I left the industry with banner groups changing their contracts so they were exclusive.

We did have a number of truely independants who did specialise in rare/exotics but they were few and far between, but they did well. If you think that offering a wine tasting and nibbles night once a month is specialised, then Uncle Dan (Dan Murphy's) has beaten you to the punch. It needs to be far more specialised than that; which in turn requires IMMENSE knowledge and passion.

Truely independants also need to negotiate the buy price of their liquor direct with the brand owners; who will then pass the pricing onto the liquor wholesaler who will invoice you at those prices. In this case, you or your manager would need to liase with the best part of sales teams from 30 companys, and double check pricing on all invoices to make sure the right rebates etc have come through. Being a member of a banner group removes this negotiation and because of volume throughout the group, pricing is usually better (although still not as good as buying through WW's on special). However this comes at a cost; and it really irked me the way they spent their Banner fees. (ie Sales team conferences in Las Vegas where not only do you take your sales team, but you take your sales rep from the 30 or so wine/spirit companys you negotiate with, then take them for a cruise on the way home!)

From memory; over 80% of "off premise" liquor in Australia is sold through either Coles (Liquorland, Vintage Cellars) or Woolworths (WW Liquor, Dan Murphy's) I'd say with the GFC it's probably a little higher than that now.

I don't know the cost of Liquor Licensing

Cheers
Buddybee
 
I've been considering starting a business that would allow me the freedom to have a hired manager after its up and running and bottle shop seems like one good idea to me at this point in time.

So if someone wanted to sell you a part of an ongoing liqour business that had hundreds of outlets throughout Australia, had very strong buying power, was fully managed (so you can be hands off), the banks would lend you up to 70% LVR on your initial capital, and you got a split of the profits based on how much money you had put into the business, would you be interested?

The Y-man
 
4 boom & bust cashcows are (not in any order)

sex
drugs
booze
ciggies

find an outlet that can sell two, or more, of each product and you're on a winner.
 
The sex part is slowing down a little too I can tell ya.
I do admin/customer service for bucks parties (strippers and titty girls), not as many guys booking 4/5 girls at once. It is mostly one show and that's it.
Might also be a seasonal thing, being winter it is quieter now.
 
I can see a boutique working, but you wouldn't be relying on alcos...they drink crap, not boutique. It depends on where you are....is it an upperty ritzy high brow type of place? Could be a goer...

In terms of management, just make sure that the person you hire has great customer service and does not have a closet drinking problem....these two things will make or break you as an owner.

Oh PS. I worked in a drive through for 6 years in my younger days. :D
 
So if someone wanted to sell you a part of an ongoing liqour business that had hundreds of outlets throughout Australia, had very strong buying power, was fully managed (so you can be hands off), the banks would lend you up to 70% LVR on your initial capital, and you got a split of the profits based on how much money you had put into the business, would you be interested?

The Y-man

i can see where this is leading, well put.:D

In fact thinking along your lines, i recently agreed to participate through obtaining some equity in a venture based on 3.5 times earnings before interest and tax (similar to some small businesses, except this one is a very large business).

The previous owners where happy enough to let me view the audited accounts, so i could check things over.
The bank was pretty happy with the overall business venture, so they agreed with the current financing in place, roughly 50%.

In addition my other private debt financiers were happy to provide additional debt financing against the total structure to another 70% gearing on top of the internal gearing of 50%, with the caverate that the position has to be mark to marketed every 24 hours.
 
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