![How to plan and track the budget of your liquor store [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-1_f008ea8e-f7fa-4c0a-9358-70ea840bc668.png?v=1715856349&width=1100)
If you don’t plan and track your liquor store budget properly, you're setting yourself up for failure.
When we developed our strategy pack for liquor store owners, we saw a lot of store owners struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial revenue.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your liquor store's finances around and set you on the path to success!
Get the budget tracker tailored for liquor stores
Most liquor store owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for liquor stores
Here is an example of a (very) detailed budget for a liquor store, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for retail space | $4,000 | $48,000 |
| Electricity | Power consumption for lighting and refrigeration | $600 | $7,200 |
| Water | Water usage | $100 | $1,200 |
| Internet & Phone | Internet service and business phone | $100 | $1,200 |
| Waste Removal | Garbage and recycling services | $80 | $960 |
| Pest Control | Monthly pest control services | $50 | $600 |
| Insurance | Property and liability insurance | $400 | $4,800 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Store Manager | 1 | $3,500 | $3,500 | $42,000 |
| Assistant Manager | 1 | $2,500 | $2,500 | $30,000 |
| Cashiers | 3 | $2,000 | $6,000 | $72,000 |
| Stock Clerks | 2 | $2,000 | $4,000 | $48,000 |
3. Inventory Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Alcohol Inventory | Wine, spirits, beer, etc. | $20,000 | $240,000 |
| Non-Alcoholic Inventory | Sodas, mixers, etc. | $2,000 | $24,000 |
| Packaging Supplies | Bags, boxes, etc. | $300 | $3,600 |
| Cleaning Supplies | Detergents, sanitizers, etc. | $150 | $1,800 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $300 | $3,600 |
| Social Media Management | Managing social media accounts | $400 | $4,800 |
| Print Advertising | Flyers, posters, newspaper ads | $150 | $1,800 |
| Website Maintenance | Hosting, domain, updates | $100 | $1,200 |
| Email Marketing | Email campaigns and newsletters | $100 | $1,200 |
| Promotional Events | Special events and promotions | $200 | $2,400 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of refrigeration units | $300 | $3,600 |
| Uniforms | Staff uniforms | $100 | $1,200 |
| Licenses & Permits | Liquor licenses, business permits, etc. | $200 | $2,400 |
| POS System | Point of Sale software and hardware | $150 | $1,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Staff Training | Training programs and materials | $150 | $1,800 |
Some liquor stores make 5x more profit than you!
We have studied the strategies of the best liquor stores in the world. Replicate them now!
What are the biggest expenses for a liquor store?
Be mindful of these financial pitfalls. Here are five major costs every liquor store owner needs to consider, along with some tips on how to manage them effectively.
- Inventory costsAlcoholic beverages can be a significant expense. Prices can vary based on brand, quality, and supplier. To keep these costs under control, focus on stocking a balanced mix of popular and premium products, negotiate better prices with suppliers, and monitor inventory levels to avoid overstocking. It's easy to overspend by buying too much or opting for high-end products that don’t sell quickly.
- Staffing your liquor storeYour employees are essential for providing good customer service and maintaining store operations. However, wages, benefits, and training can add up. Optimize labor costs by scheduling efficiently, cross-training staff, and monitoring productivity. Be cautious not to underpay or overwork your staff, as this can lead to high turnover and poor customer service.
- Rent and utilities of your storePrime locations can attract more customers but come with higher rent. Utilities like electricity, heating, and cooling are necessary but can add up quickly. To manage these costs, negotiate favorable lease terms and invest in energy-efficient lighting and appliances. Overspending often occurs when you choose a location that's too large or too upscale for your needs.
- MarketingGetting the word out about your liquor store is crucial, but advertising can be expensive, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we recommend. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
- Store fixtures and maintenance costsThis includes everything from shelving and display units to refrigeration equipment. These are essential for showcasing your products and keeping them in good condition. Optimize by investing in durable, energy-efficient fixtures and maintaining them regularly to avoid costly repairs. You can overspend by going for the latest high-tech gadgets that you don’t really need.
How to spend less with your liquor store?
Here are practical tips to help you, as a liquor store owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Inventory Costs | Partner with local distilleries and breweries for bulk purchases and exclusive deals. |
| Labor Costs | Implement a scheduling software to optimize staff hours and reduce overtime. |
| Utilities | Install LED lighting and energy-efficient refrigeration units. |
| Marketing | Run social media contests for your liquor store and collaborate with local influencers for free exposure. |
| Cleaning Supplies | Train staff on efficient use of cleaning supplies to reduce waste. |
| Equipment Maintenance | Set up a maintenance log for regular equipment checks and servicing. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive location. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Packaging | Use cost-effective, eco-friendly packaging and offer discounts for customers bringing their own bags. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates with other systems. |
| Staff Training | Conduct regular in-house training sessions and use free online resources. |
| Waste Management | Implement a waste tracking system to minimize waste and recycle bottles and packaging. |
| Technology | Invest in multi-functional appliances and utilize inventory management software for stock tracking. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan delivery routes to maximize efficiency and reduce fuel costs. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems. |
| Inventory Management | Use inventory management software to track stock levels and reduce spoilage. |
| Pest Control | Schedule monthly pest control services and maintain cleanliness standards to prevent infestations. |
| Music and Entertainment | Use a streaming service for background music and host local tasting events during off-peak times. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
Copy the tactics of the best liquor stores in the world!
There are liquor stores that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a liquor store
Yes, some expenses for your liquor store are just unnecessary. They don't contribute to increasing revenue or enhancing the customer experience.
| Liquor Store Expense | Reason It's Useless |
|---|---|
| Overly Expensive Shelving | High-end shelving units don't necessarily attract more customers and can be a drain on the budget. |
| Premium Liquor Brands | Unless you cater to a high-end clientele, most customers are satisfied with mid-range options. |
| Excessive Product Variety | Carrying too many different products increases inventory costs and can lead to more unsold stock. |
| High-End Display Cases | Top-of-the-line display cases are not always necessary and can be cost-prohibitive. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your liquor store. |
| Multiple Uniform Styles | Having various uniform styles increases costs without adding significant value to the customer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for music or magazines often go unnoticed by customers. |
| Exclusive Product Lines | Stocking rare or exclusive products can inflate costs and complicate supply chains. |
| Costly Furniture | High-end furniture is not always appreciated by customers and can be a significant expense. |
| Custom Printed Bags | Personalized bags are a minor detail that most customers overlook, and they can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Water Brands | Most customers are content with standard bottled water, making expensive brands unnecessary. |
| Extra Delivery Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Renovations | Constantly updating decor and layout can be costly and disrupt operations. |
| Expensive Store Decorations | Elaborate decorations are often ignored by customers and add to the cost. |
| High-End Glassware | Luxury glassware is prone to damage and expensive to replace, often going unnoticed by customers. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Signage Designs | Frequently redesigning signage is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Tasting Equipment | Specialized tasting equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your liquor store!
Managing a budget for a liquor store when funds are tight can feel like a nightmare. It's like being in a jail where any unexpected expense can drown you.
This constant pressure makes it nearly impossible to invest in growth projects, leaving you always chasing after expenses. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together pennies and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more money to spend.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of liquor stores just like yours. Get them now!
Make your liquor store more profitable
We have studied the strategies of the best liquor stores in the world. All their tactics are explained in our pack!
