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  • #967456
    LKC
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    Hey.

    I’m not sure if this is the correct place for this thread but it seems like the most suited.

    Since working in a bottleshop when I finished school in 08 and for most of 2009 I have wanted to run and own a bottleshop. I have a great appreciation for different spirits and beers and do enjoy wine though I am not a expert at all in it.

    I am not wanting to start one from scratch as I believe I am not yet experienced enough to do so, though would consider opening up a second shop from scratch if my first was going well. This means I am looking to buy an already existing shop.

    I am interested in knowing if anybody had any advice on where I would start in looking or bottleshops that are for sale and any tips or advice to give a newbie to the small business arena.

    I do have some potential problems with my age that I am only 19 and hence do not have much business experience, and I feel banks would be less likely to give me a loan, though I do have several family members willing to loan/give me significant amounts of money and would be willing to be a guarantor to the bank.

    I live in Melbourne and would hence be wanting to buy in Melbourne.

    #1026267
    Jake@EmroyPrint
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    Hey LKC,

    Congratulations on wanting to take the big step! I understand the feeling of trepidation as I am a young business owner as well.

    I started my own business when I was 16, so I’ve had a bit of practice before.

    If you haven’t had any experience running a business I strongly suggest you study as much as you can about it, online or through an established system – there are many facets of running a business that you may not know, but will need to.

    I also suggest you start learning as much as you can about the alcohol – It’s paramount in any retail environment that you are passionate & knowledgeable about your product – You will be able to make so many more sales this way.

    DW About the banks – If you have a solid business plan & you can prove yourself, they will lend money to you.

    #1026268
    mike@engagemarketing
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    Hi LKC,
    sounds like it’s something that you’d really enjoy. I started my first business when I was 17 as well and never regretted it (but learnt a hell of a lot!).

    Bank’s tend to love people willing to invest in businesses like a bottle shop. There’s proven demand, a proven market and as an existing business, you already have a customer base.

    Having said that with so many options to choose from, you need to give them a reason to use you EVERY time. Start a club, embrace your customers love for wine or boutique beers, make it easy for them to hear about new products, give them access to members only specials or limited-release products.

    Just spend a week visiting bottle shops, taking in what they do badly and what they do well and incorporate them into your business plan and eventually your store.

    #1026269
    LKC
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    thanks for the supportive answers. i have a rough business idea (no formal plan or witten document) that i thought up last year and funnily enough have recently seen somebody doing who currently has a monopoly on the idea in melbourne. So im sure setting it up in a different suburb would work excellently.

    my only real problem is finding bottleshops that are for sale.

    Are there any business brokers or commercial real estate agents that could be reccomended?

    #1026270
    mike@engagemarketing
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    Try some of these:

    http://business.domain.com.au/
    http://www.seekcommercial.com.au/

    Maybe it’s even worth dressing up in a suit and visiting some bottle shops and asking the owner whether they have any interest in selling. Maybe just putting the thought in their mind could get you an opening.

    #1026271
    MatthewKeath
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    Good luck with your search… I really admire your guts in getting out and getting the job done while still so join.

    Good luck mate,

    Cheers

    Matt

    #1026273
    James Millar
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    I’d be inclined to look at a franchise brand like thirsty camel (previously inn keeper – we had a client involved with them) as they will be able to help with systems, branding and competitive pricing on product.

    Just an observation for you – there seems to have been a decline in inner melbourne metro bottleshops as lease / freehold space becomes more scarce and expensive. Freehold space may be out of your price range so make sure you get a long lease.

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
    #1026274
    LKC
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    Its funny that you mention high rent rates as since i have started i have been avaoiding the CBD as it seems that the rent is very high and would cut into profits. that said it now explains why buying booze in the city its twice as expensive as the suburbs.

    i have enquired about a few businesses today so it will be interesting to see what the extra infomation i am sent contains.

    #1026275
    Michael_R
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    http://winelibrary.com/

    Great idea this one – check the box in the right hand corner that says Wine TV and watch what he does!!

    I guess my thoughts that you ‘mindset’ is right which can be 99% of the challenge.

    Just an idea from me – record what is happening at the moment. Get a video camera, get a voice recording device – this could be a great story for when your shop opens.

    Doing a video of when you are learning the wine tasting could be pretty funny – create your story and tell the world!!

    if you need some more ideas PM me

    And listen to the othe Michael he knows what he is doing for sure!!

    till later

    M

    #1026276
    kezza
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    HI
    I am currently considering opening a bottle shop in the outskirts of Perth, WA.

    I seem to be having difficulty getting information on the profitability of bottle shops. Does anyone have any information on the markup on alcohol? I was told you need to be turning over at least 20 000 a week to be viable, can anyone give a rough break down on the various costs and the profit in this.

    Thank you

    K

    #1026277
    DS_BVS
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    Hi

    I think you will find that many of these bottle shops turnover between $2M to $3M at a GPM ranging from about 18% to 25%. These are estimates because there is such a range in size, turnover and location. A net profit % between 5% and 7% of turnover could be expected.

    A couple of key things to watch out for:
    – Mark-up & GPM are not the same thing. Try to work in GPM’s
    – Stock control & mix is critical and your POS system should help here. If you are going it alone make sure you spend plenty of time on the merchandising side of the business.

    Hope this helps

    #1026278
    kezza
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    HI

    Thank you for your assistance.

    We are currently looking at franchise options as I think we will need to buying power provided by this option and of course the support and expertise. I have been speaking with someone from Thirsty Camel, r there some other franchises you would recommend we also speak with.

    Could you please outline the deifintion of GPM?

    Thank you

    #1026279
    DS_BVS
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    Hi

    Mark-up & gross profit margin are often confused.

    GPM = (Total Sales-Cost of Goods Sold)/Total Sales x 100

    Mark Up = (Total Sales-Cost of Goods Sold)/Cost of Goods Sold x 100

    The consistent application of gross profit margin is one of the keys to maintaining benchmarks and ratios that are within acceptable targets.

    A gross profit margin that is too low will impact on all of the operating costs as a % of turnover and limit the capacity of a business to grow. If you check it regularly it helps to ensure your pricing and purchases have not skewed away from where you have targeted.

    Hope this helps.

    #1026280
    chris_king435
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    If i can give you one tip, it’s don’t try and compete with Dan Murphies. You can’t. So don’t try it. Beat them on convenience, service, or something else. But you won’t be able to beat them on price.

    Heres how I’ve always thought.

    when selling product X, you can put a $1 markup on the product, or a $10 markup.

    Sure, you may get a few more customers with the $1 markup product, but you need to sell 10x the amount of the $10 product to make the same profit. To make a $100, you need to sell 100 X’s with $1 markup, or 10 X’s with $10 markup. The second option seems much easier to me.

    The figures will always end up different, but you should get the jist of it.

    Cheers,

    Chris

    #1026281
    kezza
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    Thanks for all your help.

    Just to give me more of an idea. Say we buy a bottle of scotch from the shops for approximately $32. What sort of price would the bottle shop of purchased this product for. THe same for a carton of beer. Say the carton off beer sold for $38 – what sort of price would it off been purchased for.

    Thanks

    Kerryn

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