1. Master Pricing and Profitability
Setting prices is one of the most important tasks on your to-do list as a liquor store owner. If prices are too high, you’ll lose sales and send customers to your competitors. If they’re too low, you’ll spend more than you make.
Striking this delicate balance can be tough, which is why many liquor retailers make the mistake of relying on their intuition to set prices that seem reasonable.
Fortunately, using your liquor store analytics takes the guesswork out of setting prices and achieving profitability.
You can track your inventory costs, adjust your prices, and see an automatic calculation of your profit margin for each bottle. This individual breakdown ensures that you turn a profit on every single product in your liquor store.
Bonus resource: Hoping to increase your liquor store’s profits? Our suggested pricing calculator is the perfect place to start! Scan or enter a bottle’s UPC, get our recommended price, and adjust to match your profit goals and customers’ expectations.
2. Improve Your Inventory Management Approach
Effective liquor store inventory management goes beyond knowing what’s on your shelves.
Understanding your customers’ always-changing shopping habits, staying up to date on sales trends, and monitoring your inventory turnover rates can help you stay flexible and make informed inventory ordering decisions.
Let’s say your POS system’s reports reveal a dip in traditional liquor sales and a spike in pre-made cocktail sales. If you continue ordering these products in the same amounts, you might overstock some of your liquor products, leading to cash flow and storage issues. You’ll also understock these popular pre-made cocktails, resulting in lost sales and disappointed customers.
In short, using your liquor store analytics to inform your product and inventory replenishment strategies ensures that the products on your shelves match your customers’ wants and needs.
3. Identify Your Busiest Days and Times
Is your liquor store open when your customers need it most? Your sales reports can tell you.
Your reports should show how your sales trends change by the hour, day, and week. Once you’ve identified your busiest periods, you can make sure your store is open, thoroughly stocked, and well-staffed to accommodate your customers’ schedules.
Imagine your store’s standard open hours are 12:00 to 7:00 p.m. every day, but your sales reports reveal that 5:00 p.m. until close on Fridays and Saturdays are your peak sales times.
In this case, you should consider extending your open hours and scheduling more team members over the weekend to plan for the rush and unlock new sales opportunities.
4. Prepare for Seasonal Shifts
In the cold months, your shoppers will reach for spiced rums, warm whiskeys, and red wines. In the summer, they’ll crave cold beers, refreshing vodkas, and tart tequilas.
Your liquor store analytics should help you anticipate these seasonal shifts in your customers’ wants and needs, giving you insights into which products sell best during different times of the year.
When the weather starts to change, review your historical sales data to identify any seasonal trends. You can then use this information to forecast inventory demand, making data-driven decisions about which bottles to stock.
Related read: Managing Seasonal Inventory for Your Liquor Store