Marketing Strategies for Liquor Package Stores

by Craig Berman
Marketing should remind everyone of how much liquor you stock.

Marketing should remind everyone of how much liquor you stock.

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In an era where many small liquor stores are competing against high "sin taxes" from the government and against increasing encroachment into their markets by larger retailers, marketing has become an even more critical part of operations. To make your package store stand out, pick an approach that targets the customers in your area and remind them of the service and selection that you provide.

Know Your Customers

Not everyone who comes into your liquor store is there for the same thing, or shops the same way. Some already know what they want, thanks to advertising from the liquor companies or their personal tastes. Some only shop when hosting on special occasions. Some are looking for bargains, or to try new things and develop their palate. When you're coming up with a marketing strategy, it will take a diverse array of approaches to reach everyone.

Direct Mail

Most liquor stores get the majority of their customers locally. Direct mail can be a cost-effective marketing tool because you can reach only neighborhoods within a few miles of your establishment. If you have a customer list, start with that and use periodic mailings to send marketing materials and announcements of your latest deals. Consider buying a mailing list from a distributor as well. Although it may cost a few hundred dollars, you can ask that names only be associated with specific zip codes in your area to increase the effectiveness of the campaign.

Onsite Marketing

On-site marketing can be effective for driving customers towards impulse purchases. Most of the time your suppliers will be happy to provide marketing materials such as in-store displays to highlight their products. End displays, checkout displays and freestanding displays provide high visibility to attract customer interest. Highlight any relevant promotions or contests, as well as price reductions. If marketing displays are by the counter, price the items in a way that encourages impulse purchases.

Market Your People

If you live in a state where major retailers are in the liquor business, competing on price is going to be difficult. On the other hand, those stores are unlikely to be able to match the number of products you sell, or the expertise of your staff. Feature your strengths clearly in your marketing, and let your people do more than stock shelves and man the register. Have shelves where they can post their recommendations. Run tasting events where they can show off their skills and allow customers to sample beverages. Have staff always available to assist a customer looking for a quality wheat bourbon or specialty tequila. Liquor is expensive, and customers who don’t buy it very often will be a little nervous about buying the wrong thing. Steer them in the right direction and they’ll be back — with their referrals.

Sell Other Products

The competitive landscape in some states makes success more difficult, and high taxes can also make it pricier than expected to purchase liquor. Depending on state regulations, some package stores can boost revenue by also selling items not subject to sin taxes. Complementary items like soda and juice, which some customers will mix their liquor with anyway, can be high-profit items without the high tax. So can food products. In addition to snacks, consider stocking specialty foods that customers may be inspired to pair with their beverages, such as imported meats and cheeses. By adding more inventory, you can market yourself as a one-stop shop rather than a place people go to solely for their liquor.

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