Liquor stores tend to focus on the most profitable products. Selling a lot of a product with a low-profit margin may make it difficult to survive. The key for consistent cash flow is to order highly profitable products in medium quantities.
Like other industries, it is common for a liquor store to have a lot of their operational funding tied up in inventory. Liquor stores do a majority of their sales during the holiday season. The seasonality of the business makes it difficult to purchase the high-profit items due to their high expense. The off-season is when distributors are most likely to offer discounts for bulk purchases, so having capital during this slow season is key.
A liquor store is supposed to turn over its entire inventory eight times by the end of the year. Many liquor stores decide to pay bills ahead of time to avoid the seasonality of profits. Maintaining a high-profit inventory can also take money away from marketing or renovations.
First Premier Funding has many years of experience funding Liquor Stores. We can provide you the funding to improve your business and better manage your inventory. Contact us today at (888) 358-8484 or apply now to see how First Premier Funding can help your business grow.