![How to plan and track the budget of your spirits store [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-1_4a0fb7a3-99a8-45e2-9982-11621c317106.png?v=1715856357&width=1100)
If you don’t plan and track your spirits store budget properly, you're setting yourself up for failure.
When we developed our strategy pack for spirits 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 spirits store's finances around and set you on the path to success!
Get the budget tracker tailored for spirits stores
Most spirits store owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for spirits stores
Here is an example of a (very) detailed budget for a spirits 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 |
| Sales Associates | 3 | $2,000 | $6,000 | $72,000 |
| Cashier | 1 | $1,800 | $1,800 | $21,600 |
3. Inventory Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Spirits Inventory | Whiskeys, vodkas, gins, etc. | $15,000 | $180,000 |
| Wine Inventory | Red, white, and sparkling wines | $5,000 | $60,000 |
| Beer Inventory | Craft, domestic, and imported beers | $3,000 | $36,000 |
| Mixers & Accessories | Soda, tonic, bitters, etc. | $1,000 | $12,000 |
| Cleaning Supplies | Detergents, sanitizers, etc. | $150 | $1,800 |
| Paper Goods | Receipt paper, bags, etc. | $100 | $1,200 |
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 and aprons | $100 | $1,200 |
| Licenses & Permits | Liquor licenses, business permits, etc. | $150 | $1,800 |
| POS System | Point of Sale software and hardware | $200 | $2,400 |
| Contingency Fund | Emergency repairs and unexpected costs | $400 | $4,800 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Staff Training | Training programs and materials | $150 | $1,800 |
Some spirits stores make 5x more profit than you!
We have studied the strategies of the best spirits stores in the world. Replicate them now!
What are the biggest expenses for a spirits store?
Be mindful of these financial pitfalls. Here are five major costs every spirits store owner needs to consider, along with some tips on how to manage them effectively.
- Inventory costsStocking a wide range of spirits can significantly impact your budget. Prices can vary based on brand, quality, and market demand. To keep these costs under control, focus on inventory management, negotiate better deals with suppliers, and avoid overstocking. It's easy to overspend by purchasing too many premium brands that may not sell quickly.
- Staffing your storeYour employees are essential for providing excellent customer service and maintaining store operations. However, wages, benefits, and training can be costly. 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 retail locations come with high rent, but they can attract more customers. Utilities like electricity, heating, and water 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.
- MarketingPromoting your spirits 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 elaborate campaigns without a clear return on investment.
- Store fixtures and maintenance costsThis includes everything from shelving and display cases to point-of-sale systems. These are essential for a well-organized and attractive store, but they can be costly. Optimize by investing in durable, functional fixtures and maintaining them regularly to avoid expensive repairs or replacements. You can overspend by opting for high-end fixtures that don't necessarily enhance the customer experience.
How to spend less with your spirits store?
Here are practical tips to help you, as a spirits store owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Inventory Costs | Partner with local distilleries and breweries for exclusive deals and bulk purchasing discounts. |
| 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 spirits 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 point-of-sale systems and utilize inventory management software. |
| 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 spirits stores in the world!
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Expenses that are just useless for a spirits store
Yes, some expenses for your spirits store are just unnecessary. They don't contribute to increasing revenue or enhancing the customer experience.
| Spirits Store Expense | Reason It's Useless |
|---|---|
| Luxurious Store Decor | Overly extravagant decor doesn't necessarily attract more customers and can be a drain on the budget. |
| High-End Liquor Brands | Unless you cater to a niche market, most customers are satisfied with mid-range options. |
| Extensive Product Range | Carrying too many products increases inventory costs and can lead to unsold stock. |
| Top-Tier Display Fixtures | Premium display fixtures 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 spirits 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 Spirits | Stocking rare spirits 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 filtered tap water, making expensive bottled water 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 Display Centerpieces | Elaborate centerpieces 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 Label Designs | Frequently redesigning labels 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 spirits store!
Managing a budget for a spirits 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 spirits stores just like yours. Get them now!
Make your spirits store more profitable
We have studied the strategies of the best spirits stores in the world. All their tactics are explained in our pack!
