Pages Menu
Categories Menu

Posted on Jul 14, 2015 in Business Marketing

Why a liquor license is paramount for running a profitable business

No matter the type of business, whether it is a bar or a restaurant, owners really need permission in order to sell alcohol. But why is it so important for a business to merchandise alcohol? The truth is that most of the incomes that businesses realize, either restaurant or grocery store, are represented by the sale of alcohol. The truth is that people simply enjoy going out for a beer with friends and catering to their needs means an additional opportunity for business owners to make a few bucks. In the beginning, you may not know how much is a liquor license and for this reason and many others it is better to work with a brokerage firm to get your authorization. So what are the perks of getting your license?


The numbers behind alcohol sales

The most surprising thing related to the sale of alcohol is the fact that even during the recession period many enterprises were still able to make huge gains. While people are reluctant to spending money on other things in order to save a little cash, statistics clearly show that during no matter what financial situation the alcohol industry still survives. There has never been quite a profitable business such as that of selling beer, wine and liquor. Those that have just started out quickly realize that in the months following the opening of a business profits can increase even by 8 percent. The only problem is represented by the fact that establishments are actually restricted in the commercializing of alcohol and in order to sell beer or other beverages they need a liquor license.

How the alcohol is priced

The business owner first takes into consideration the prices that the competitors set on the beverages that they sell. For instance, restaurants and bars set the price of a beverage according to the difficulty with which a specific drink is prepared. A cocktail is not that easy to make and in addition to alcohol, other ingredients are added into the mix. In short, the price of a drink represents the expectations of the business and the price will be higher if the business intends to make huge profit from the sale of alcohol.

Are there any restrictions?

The answer is affirmative. Although the business owner may receive authorization for the merchandise of alcohol, the truth is that there are numbers of laws and taxes that not only restrict the revenues that the business is to make, but also the quantity that is merchandised. The reason for which the merchandise of alcohol is restricted in so many ways can be explained by ethical reasons. For instance, the government might fear that the owner of a bar may sell alcoholic beverages to minors. In fact, all states regulate the age limit that allows underage persons to consume alcohol. In addition to this, regulations also state that alcohol cannot be sold just anywhere and at any time.

To conclude, while in the beginning many businesses started out with other purposes, very rapidly the merchandise of alcohol has become the main source of profit for other small businesses other than bars and restaurants. This is the reason for which many strive to acquire the necessary authorization and just think that alcohol revenues can represent even 50% of the general incomes of a business.