Value Drivers for a Liquor Store
Have you ever wondered the value of your liquor store or how to increase its value? There are a variety of ways you can increase the value of your liquor store. Peak Business Valuation, business appraiser Texas, would love to help you understand the value of your liquor store and how to increase it. Below are several value drivers that you can implement to add value to your liquor store:
Have Appropriate Liquor Licenses
First, having a liquor license if appropriate can increase the value of your liquor store. There are different laws throughout the states concerning the sale of alcohol. Some states allow an unlimited number of liquor licenses. Due to specific laws, other states may set a limit on the number of licenses that can be issued. Obtaining a liquor license can increase the value of your liquor store depending on where the store is located and the number of licenses available.
Provide Unique Discounts & Promotions
The next way to increase the value of your liquor store is by enticing customers through discounts and promotions. Running frequent promotions can help to draw in new customers and get repeat purchases from existing customers. In addition, you can offer price reductions for buying in bulk, such as “buy one bottle, get another half price”. Make sure your potential customers are aware of these offers. You can make them aware by promoting the discounts on your website and on a sign outside your store. This is a great way to attract customers and turn potential customers into repeat customers.
Offering a discount on items that are often bought together is another way to increase the value of your liquor store. For example, create a bundle package where customers can buy wine with gourmet cheese or other foods that go well with wine. Another effective way to increase the value is to offer a new, exciting, and exclusive product for a limited time only. Bundling products can increase revenue which in turn increases the value of your liquor store.
Also, consider offering special discounts for members of your loyalty program. This encourages customers to sign up for the loyalty program, which incentivizes them to make repeat purchases in the future.
Offer a Loyalty Program
Loyalty programs are a great way to retain customers. Loyalty programs reward customers for their loyalty, make them feel appreciated, and also incentivize them to come back and buy from your business again.
The keys to a successful loyalty program are:
- Make customers sufficiently aware of your loyalty program. Consider mentioning your loyalty program in your advertising efforts.
- Offer sign-ups through an app. The easiest way for a customer to sign up for a loyalty program is on an app. They can simply download the app to their phone.
- The loyalty program should be a good enough incentive for customers to take time to sign up. You have to give them a good incentive. Make sure that the discounts and promotions they will receive outweigh the inconvenience of signing up.
For more information see The Value of Customer Loyalty.
Create a User-Friendly Website
Create a user-friendly website for your business that makes it easy for customers to shop your products. Use the website to build an email list that you can use for informing customers of events, classes, or free sample options. The website can contain articles on various wines and announcements of in-store events. Creating a user-friendly and informative website can help attract customers and increase the value of your liquor store.
Offer a Variety of Products
Expand your product offering beyond alcoholic beverages. Consider offering gourmet cheeses, olives, and other foods that go well with alcoholic beverages. As you increase the variety of your products, more customers will gain interest in your liquor store.
Your product mix will also impact the value of your liquor store. Stores that sell primarily wine typically have higher margins than those whose main income is through liquor. Higher margins typically command a higher valuation multiple.
One of the first challenges you must overcome in order to increase the value of your liquor store is to get customers in the door. As customers are driving down the road, you want to create a way to convince them to stop at your liquor store. This can be accomplished by having a large and colorful sign that attracts people’s attention. Bright and colorful signage is better at attracting attention than plain or black and white signage.
Host Events & Classes
Last, you can allow customers the chance to try your products through classes and free-tastings. Bring in a professional bartender every so often to guide mixed-drink classes. Customers can learn from an expert which wines go best with which food. Invite customers to attend and learn how to make complicated cocktails that might be too difficult to make on their own. After taking the class, customers can pick the alcohol they need to make a new drink at home.
Another way to add unique value to your liquor store is to offer free wine-tasting events in the store. Who doesn’t love free samples? Free tastings expose customers to new wines, which could lead to more store visits, which helps increase the value of your liquor store.
Understanding what drives the value of your liquor store can help you to set goals to maximize the value. There are many value drivers for a liquor store firm. These are some of the most common Peak Business Valuation, business appraiser Texas, sees.
Many of these value drivers strive to increase the number of customers and customer purchases. The more customers you have, the more sales, and hence the more valuable your liquor store becomes.
Peak Business Valuation, business appraiser Texas, helps by providing business valuations to value a liquor store. For additional information on discovering the value of your company and how to increase it, schedule a free consultation call with Peak Business Valuation, business appraiser Texas!
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