Determining Profit Margin

PhillipK

Hello,
I`m developing a business plan for starting a liquor store.  I`ve had a VERY difficult time getting whole price lists from the distributors without having a license to sell.  That said, I`ve managed to get at least one list, so I am hoping to base estimates on those numbers.
My question is:  What is average mark up percentage on retail liquor? 
Need this to determine inventory, cash flow, and volume.  Any help appreciated.

HomeGurdian

Hi PhillipK, Here is a suggustion. I would go to other liquor stores and get there pricing. I would also look and how they layed there store out. This will help you understand how someone else is doing it. After getting data points of lets say 10 items (prices) you can get your markup. From there you can build your performa. If you go to another area where you won`t be doing business. Most business owners will help. Help is the most powerful work I know. I would just ask long as it is not your direct compedator. Hope this helps

PhillipK

Good points.  I was hoping to catch someone on this board willing to share that info with me too. 
 

HomeGurdian

Hi PhillipK, I will be by the computer all day. Post again.

toyman

PhillipK,
Check out www.Bizstats.com</A>.  You can put in your projected revenue in your general field of business and it will give you national averages of net profit and various expense percentages.  A good barometer for all of us!
-Ryan
All New Materials
Marblehead, OH

PhillipK

great info! thanks for the tip!

PhillipK

I`ve asked around and what I`m finding is an average mark up of 20 - 30% over wholesale cost.  Does that sound about right?  Seems low to me, for some reason.