Why a Liquor Store Can Be the Most Recession-Proof Business of All

Are you trying to find a business that won’t be unfavorably affected by the current economic slump? You should be! So, grant me the privilege of sharing just one essential piece of advice with you.

Buy a liquor store.

Liquor stores are amazingly recession-proof, perhaps even more than any other sort of retail business. With experienced management on your part, you can sustain solid profits from your liquor store, even in really tough times.

People will still buy alcoholic beverages, even in a tough recession. Liquor sales remained strong in the recession of the mid-1980s, and they are holding quite strong in the current climate. People keep buying wine, liquor and beer, even when times become difficult. But let me add the following thought:

Currently, people are spending carefully. The days are gone (or at the very least, they’re on hold) when most consumers would think nothing of paying $40, $50 or more for a bottle of wine to go with their evening meal, but don’t worry, that trend positions you to keep your profits strong, because:

The liquor business allows you to adjust and adapt to customer purchasing patterns. You can stock a wide variety of excellent low cost products that today’s customers really want. If you’re an imaginative merchandiser, you can stock your stores with an innovative array of lower-cost wines, beers and other alcoholic beverages, ensuring your customers get good value for their money and never feel deprived. After all is said and done, they can keep having fun with the adventure of buying and drinking new products, while saving money as well! Just keep in mind that you have to shop intelligently for these products, while not forgetting to:

Dramatically increase your profits with inexpensive, effective marketing. You can receive a $30 profit on a case of inexpensive priced Chilean wines, vs. $10 on just one bottle of more costly French wine – and the marketing expenses are identical for both selections! With good quality low-priced marketing (through sales flyers in community newspapers, or via an email newsletter that you send out to your preferred customers), you can sell quite a bit more products in these difficult times. Your customers will value you and the excellent value you provide. You can easily increase your perceived value even more by implementing this next strategy:

Use top notch service and advice to maximize your sales. More customers these days are looking around for alcoholic beverages that are inexpensive, yet still really good quality. (This can be summed up with the simple word, “Value.”) This spells opportunity for you, the new owner of a liquor store. You can study wine yourself, hire top notch salespeople or just order selectively from the low cost wines that you see listed in popular trade magazines. Just don’t forget to lure in customers with some creative marketing strategies, such as sending your customers classy email newsletters that include specific discounts for selected products.

There are no small retailers, only retailers with small ideas! If you’re looking for a flexible, resilient business that will bring in solid profits in the current recession, and make even more money when the current recession goes away – look no further than a liquor store!

Richard Parker is the President and founder of the Diomo Corporation – The Business Buyer Resource Center. His inspiring materials, seminars and consulting have assisted thousands of business buyers with achieving their life-long dream of buying a business.