MYTH: Liquor stores are recession proof. The Top 3 ways you can prepare your store for a recession
It’s a common misconception that liquor stores are recession-proof. However, anyone who’s a vet in this industry knows that this is far from the truth. During tough economic times, liquor stores face a decline in sales, as customers become more price-sensitive and buy fewer high-end products. For example, a customer who would have typically bought a 6-pack of expensive craft beer and a case of Coors might instead purchase two cases of Bud Light because it’s on sale. Fortunately, there are steps that liquor store owners can take to prepare for a recession, including implementing technology, such as point of sale (POS) software, to help combat theft and diversifying product offerings.
1. Implement a surcharging program on credit cards:
Implementing a surcharging program on credit cards can protect your liquor store during a recession. The program adds a small fee to every transaction made with a credit card, which can add up over time. The fee can help offset the costs associated with processing credit card transactions, such as interchange fees, and help you maintain your profit margins during a recession. However, it is essential to ensure that the program complies with credit card processing agreements and consumer protection laws. You can use software such as Cloud Retailer, which can help you implement the program in a consumer-friendly way.
2. Diversify your product offerings:
Diversifying your product offerings can help you weather a recession. For instance, you can start offering more affordable products or create value packs to entice customers who are more price-sensitive. Additionally, you can start stocking cheaper but still popular brands to cater to customers who are looking for value for their money. Selling “blowout beer,” which is clearance beer bought from suppliers, can also be an effective strategy. However, selling blowout beer is an art form. Check out our blog post on that subject by clicking here.
3. Implement cost-cutting measures:
Implementing cost-cutting measures can help you manage your expenses during a recession. For example, you can negotiate better rates with your suppliers, reduce your staffing levels or hours of operation, and cut back on non-essential expenses. Additionally, POS software with built-in inventory management can help you keep track of your products and reduce the risk of theft. You can also use security cameras to monitor your store and deter theft. Check out “What can liquor store owners do about shoplifting?”.
In conclusion, liquor stores are not recession-proof. During tough economic times, liquor store owners need to take proactive steps to prepare their business. Implementing a surcharging program on credit cards, diversifying your product offerings, and implementing cost-cutting measures are essential ways to safeguard your liquor store during a recession. Additionally, using POS software and security cameras can help combat employee and customer theft, making it an important consideration for liquor store owners. If you want to know more about how to use technology to help recession-proof your liquor store, subscribe to our newsletter, today! By taking these steps, you can increase your chances of surviving a recession and continue to thrive even during tough economic times
