Applying for a liquor license should be easy, right? We wish.
Liquor laws, including licensing costs and rules, vary by state, county, and even city. To make things even more complicated, there are often differences between licenses for selling liquor and selling beer and wine.
Want to understand how much a beer license costs? We’ve got you covered. In this post, we’ll cover:
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How much does a beer license cost? As is true for all things related to liquor licensing, the answer is complicated. But, to give you an idea of the cost difference between a beer license and a liquor license, here are a few examples.
Like the Arizona example above, a beer license isn’t always cheaper than a liquor license but is often easier to obtain. This allows beer experts to open a niche craft beer store with less red tape.
Check your state ABC board for exact licensing rules and costs.
There are two main types of liquor licenses: on-premises licenses for bars and breweries where customers drink on-site, and off-premises for liquor stores or wine shops where customers buy sealed containers to drink elsewhere.
However, there are also subclasses of both license types, and in many states, there are beer and wine licenses (with further distinctions for different types of businesses).
So, why get a beer and wine license over a liquor license? Generally speaking, a beer license will be:
While the process for getting a beer license will largely be the same as getting a liquor license, the costs and restrictions are generally less. There are also fewer restrictions on the number of beer licenses allowed, whereas liquor licenses often have quotas or zoning restrictions.
If you live in an alcohol control state, this can be especially true as beer and wine sales tend to be less strictly regulated.
Here are some of the businesses that commonly have a beer license or a beer and wine license instead of a full liquor license:
If you know that your liquor retail store or bar won’t be selling hard liquor, it’s always worth checking for the type of license you need to see if you can save money on a less expensive license type.
Also, it’s important to know what type of license you need to stay compliant with local laws. If you plan to sell alcohol, make sure you have a point of sale (POS) system that can manage ID checks and apply the correct sales tax.
If you’re selling beer in a grocery store, convenience store, or beer specialty shop, you need to find ways to stand out from liquor stores and stay competitive. Here are a few tips.
If people are looking for big, national beer brands, they generally don’t need to look far and wide to find them. Unfortunately, if your selection is mostly beer staples, people won’t go out of their way to buy from you.
Instead, specialize in stocking a selection of craft beers, including local favorites. By building connections with local brewers, you can supply cans that other retailers and liquor stores might not have access to.
You can also use signage to highlight breweries from your state to draw people’s attention.
If your point of sale system supports it, you can also mix and match cans to create your own six packs and curated selections.
As prices rise for many goods (including beer), small businesses simply can’t compete with bigger chains on cost alone. However, this isn’t all bad news.
Many people looking for a special treat are still willing to spend the money as long as they feel confident in their purchase. This is where excellent customer service comes in. Staff who can chat with customers and make expert recommendations can help drive sales as (if not more) effectively as discounts.
If you and your staff are beer enthusiasts, create a section of the store with staff picks, including some signage with one or two sentences about why a particular beer is special.
There are lots of breweries and beers out there. How do you choose which ones to stock? If you make stocking decisions purely on instinct, you might miss out on opportunities to understand your customers and might end up stuck with dead stock.
Instead, use the inventory management features on your POS system to make better stocking decisions. Inventory management software can help you:
These features will ensure you’re not just keeping your store stocked, but stocked with the beers that your customers actually love.
Attracting new customers to your store is great, but keeping old ones coming back is even better. That’s why so many small retailers implement customer loyalty programs.
At its most basic, a customer loyalty program uses a customer’s information to track their sales history to earn points, which they can redeem for discounts or freebies.
More importantly, by looking at the sales history of your most loyal customers, you can start to understand:
These metrics can help you make smarter decisions about store layout, promotion ideas, and more. Last, use your customers' contact information to send out a weekly or bi-weekly newsletter highlighting any new arrivals or special brews on sale.
Related Read: 5 Promotions to Try For Your Craft Beer Store
If you want to share your passion for beer with your customers, why not share some beer? Literally.
Hosting a beer-tasting event is an excellent way to highlight a particular brewery or just get people to sample your selection. You could even pair with local food companies and restaurants with craft beer and food tastings.
Just make sure you stay compliant with local laws by checking IDs for all attendees. Remember, just because you have an off-premises license, you can’t just start cracking cans and call it an event. You’ll need to apply for a special, short-term event license to sell and consume beer at your business.
Understanding your local liquor licensing laws and avoiding common mistakes can be daunting. Getting a beer license is potentially a slightly cheaper and less stressful option.
However, getting the right license is only the beginning. To stay competitive and keep costs down, you’ll need ways to optimize your inventory, stay compliant with liquor laws, and keep customers coming back.
Bottle POS was crafted to combat the challenges of liquor stores, beer stores, and wine shops. Bottle POS has everything a beer-loving store owner needs to be successful, including:
Schedule a custom demo today to see how Bottle POS can simplify beer sales at your store.
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