Liquor stores must consistently offer new, unique products in order to stay competitive. Otherwise, customers will give their business to larger competitors, which are conveniently located in the same shopping center or not far down the street. Supermarkets have a limited selection but plenty of people still seek out the most basic choices before a booze-fueled get-together. That list of “basic choices” is growing, meaning liquor producers must continuously go to new heights to prove their purpose.
Like most industries, maintaining steady revenue throughout the year requires liquor stores to make a series of crucial investments. These investments happen to be extremely lucrative in their ability to establish the investor’s reputation as the go-to source for the best products in town. They allow the business to quickly take advantage of opportunities to gain a competitive edge, since any experienced liquor store owner knows what will be a hit with his or her primary demographic.
Business financing companies like United Capital Source have helped many liquor stores invest in products and marketing efforts that resulted in high sales and business relationships with key beverage manufacturers.
MARKET NEW PRODUCTS
Promising alcohol products are released all the time, and liquor stores are rewarded for promoting them. You’ve seen these promotions before: You enter the business and are immediately greeted by either an eye-catching display of the product or an employee holding a tray of free samples. The product is on the expensive side but the business is chock-full of them for three reasons.
Incoming customers will be reminded that this is something they cannot just get at a supermarket or beer distributor, and this particular product has the potential to strike the interest of anyone looking for a product that fulfills a set of broad queries. Anyone looking for something “smooth, tasty, and not too strong,” for example, will be directed to the new item. The third reason is obvious: No new product is promoted without an exclusive offer, such as a discount for bulk purchases. Expensive products seem a lot more enticing when there is a “Buy one, get one half price” deal attached to them.
NO TIME TO WASTE
It’s usually the manufacturer, not the liquor store, that decides what to showcase and at what time of the year. The liquor store just has to be able to purchase the minimum quantity required for the promotion as well as pay for advertising in local media. If one liquor store doesn’t volunteer as soon as the offer is on the table, another store will. The business owner needs cash fast but traditional lenders take months to approve small business loans and even longer to distribute funding. Alternative business lenders, on the other hand, can approve funding in 24-48 hours and distribute funding in a matter of days. Securing the inventory as soon as possible gives the business enough time to test out different marketing techniques as well as first dibs on the manufacturer’s next promotional item.
CAPITALIZE ON THE BUSY SEASON
Liquor stores are seasonal businesses, which means they promote different products and experience cyclical dips in revenue during different times of the year. One product might be popular for the summer while another is a staple for the holiday season. With these trends in mind, liquor stores must purchase excessive amounts of certain product in order to offer exclusive deals and receive discounts from wholesalers for buying in bulk. The downside of seasonality is that the busy season follows the slow season, when sales are down. This severely limits a business’s ability to prepare for the busy season and maximize the potential for a strong performance.
United Capital Source offers funding programs specifically tailored for this dilemma, such as a Merchant Cash Advance. This program supplies a lump sum in exchange for a fixed percentage of future credit card sales. There are no fixed monthly payments, and repayment is calculated and taken from each credit card batch. You could buy all the inventory you need without worrying about covering bills and payroll, even during the slow season. When the busy season arrives and sales start to pick up, that’s most likely when the majority of the merchant advance will get paid pack which helps cash flow remain healthy.
A Merchant Cash Advance is especially appropriate for liquor stores because the majority of their sales are conducted via credit card and they thrive on a wide selection of products available for discount prices. Without the need to make monthly payments, you can take your time figuring out which products are most popular and then create discounts accordingly.
LOOK NO FURTHER THAN UCS’S INDUSTRY EXPERTS
It’s understandable for any business owner to want to avoid the tediousness of taking out a traditional business loan, but at UCS the application and approval processes couldn’t be more simple. Our one-page application takes just minutes to fill out, and you don’t need collateral or a perfect credit score. Our clients are judged solely by the performance of their businesses, so if your business has the cash flow to prove that demand has stayed strong, call 855.933.8638 or visit the UCS website. UCS business funding experts have years of experience in working with liquor store owners and will guide you every step of the way.