The Benefits of Investing in a Bottle Shop Business for Sale
The Benefits of Investing in a Bottle Shop Business for Sale
Australians have an insatiable thirst for social drinking, which is bound to stay. From beer and wine to spirits and ready-to-drink mixes, the Australian crowd is always eager for more, it seems. Recent data from the Roy Morgan’s Alcohol Consumption Report, regarded as among Australia’s most comprehensive consumer surveys, showed an increased number of Australians who indulged in alcohol in 2021. This is good news not only for the alcohol industry, but also for those looking to get into this business.
Bottle shops are highly profitable ventures in Australia. In fact, the average profit margins for liquor stores range from between 20% to 30% annually, which isn’t bad at all. But this isn’t the only reason why this is an attractive opportunity. In fact, there are many more advantages to investing in a bottle shop business for sale.
1. Demand will never dry out
This one is quite obvious, as the demand for alcohol will remain steady all year through. Be it a casual gathering or a celebratory occasion like a wedding or a birthday, alcohol is a time-tested lubricant for social interactions. And the demand can see a spike during times like Christmas and New Year, and public holidays.
2. It is Recession Proof
Be it a lockdown or a recession, this is one business that will always be in high spirits. Pun intended. It has been observed that bottle shops are always in high demand even when the economy plummets. This is not surprising, as alcohol provides a respite and an easy escape from daily stress.
3. Long Inventory Life
Most of the inventory here has a really long shelf life, when compared with other consumables like grocery. Apart from some liquors and wine that need to be stored at a specific temperature, most of the other bottles can stay good for months and even years. This also means that you wouldn’t have to worry about wastage if they remain on the shelf for a long time, and can stock up as and when needed.
4. Low Promotion Costs
Where there is a bottle shop, there will always be a crowd! If you have the right selection of inventory and are in a good location, you will not find it a challenge to draw customers, even if you do not advertise. Instead, you only stand to benefit from the heavy marketing budgets that alcohol companies deploy to promote their products, if you have those in your inventory.
At Absolute Business Brokers, we have a number of very good bottle shop businesses for sale in prime locations across Victoria. If you are ready to become a part of this spirited industry, then do give us a call on 03 9566 7300.