A conversation with a Liquor Store owner ended like this.

“If things don’t change in the next six months, I’ll have to close up after 20 years”

This is a situation being experienced by many businesses.  The context is as follows:

·         It’s a long established business

·         Big retail chains have opened up all around

·         He buys beer from the retailers because they can sell cheaper than he buys wholesale

·         The owner is working late at night because he can’t afford to pay people

·         The owner looks dishevelled

·         Parking out front is poor, though there is ample off street parking behind the store

·         The store looks tired

·         The owner has installed a poorly performing deli in the corner.

What can he do?  What would you suggest?

Assuming he cannot sell the business, or easily move; and that he wants to stay and fight, I would do the following:

1.       Consider a segment for focus (High end? Convenience? Product? Advice? Ethnic?)

2.       Consider access - open the back entrance

3.       Presentation - dress up employees and clean the store

4.       Invest in ticketing and tasting notes (e.g. this wine would go great with Madras Curry)

5.       Less is More (see my previous post)

a.       Consider less stock so the store can be uncluttered.

b.      Remove signage - If the signs are old and dated, just remove them

c.       Consider what else could be removed because small retailers love jamming things in to every square foot

6.       Consider ambiance such as background music and screen shots of vineyards on plasma screens

7.       Give customers other reasons to visit by introducing wine tasting club/theme nights

8.       An email mailing list with pre-releases and specials (he’s never asked for mine)

9.       Introduce some complementary products which make sense such as

a.       foods to accompany the wine e.g. Persian Fetta and Olives)

b.      introduce the great snacks to go with Beer

c.       sell wine books, poker sets and recipes

10.   Start a Social media Strategy (See Mashable’s introductory strategies here and advanced strategies here), but I would start with:

a.       A Squarespace promotion (no one else is doing it in the area)

b.      A Facebook Fan Page – as opposed to a Friends Page

c.       A blog to talk about new products (try Posterous or Blogger)

d.      Get connected on LinkedIn and find affluent potential consumers, and give advice

e.      A twitter account for regulars

f.        An email newsletter – not talking about your business, but how customers can use the product

11.   Learn from the experts – in wine retailing you cannot go past Gary Vaynerchuck

12.   Choose action over anxiety – but not the same actions, different actions.

But the most important thing is this:

Do not stand behind the counter and wait for things to change.  They will change, but not for the better.

This is hard work outside the comfort zone of most business owners. 

If you don’t take control, someone else will.