Should I keep stocking up for the holidays while my liquor store is for sale?
Factors to weigh: your usual holiday and summer pattern, whether sales would dip without the build, and how much stock would remain at closing. Avoid ordering far beyond it, agree early with the buyer how stock is counted and paid for at closing, and record your seasonal plan in writing.
A liquor store lives on its seasons. Holiday gifting, summer patios and long weekends all pull stock off the shelves, and empty shelves at those moments cost sales. If you pull back on ordering because a sale is pending, customers notice and your numbers weaken just when a buyer is reading them. The goal is to run the store as you always have and keep the closing clean.
Keep the normal pattern
Look at what you ordered in the same stretch last year and the year before. Use that as your guide, adjusted for anything that has changed in your sales. Keep the popular lines, the gift sets and the dated beer fresh. A buyer who visits the store and sees full, well-kept shelves gets a more accurate picture of what the store does in a busy season.
Avoid the overhang
The risk on the other side is ordering heavily in the hope of a big peak, then closing with a pile of unsold product. A large overhang makes the closing count harder and can lead to a dispute over what is counted. Items close to their date and slow movers are the usual sticking points. If you are unsure, order in steps and check sales against your plan.
Agree how stock is counted
Settle the method with the buyer before the count, not on the day. Who counts, what is included, how damaged or dated product is treated and how stock is paid for all belong in the purchase agreement discussion. Ask your lawyer to put the method in writing, and ask your accountant how the count ties to your financial statements.
Related reading
11 pages on the same subject, grouped by topic.
Buying
- Expert answerWhat is running a liquor store like day to day?
- Expert answerBuying a liquor store with the building or on a lease: what changes?
- Expert answerHow do I find a liquor store for sale?
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Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
- 02Business Development Bank of CanadaGovernmentWhat are financial statements?
- 03Business Development Bank of CanadaGovernmentWhat is inventory
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