- April 23, 2019
- Posted by: simba001
- Categories: Uncategorized, Wines and Spirits Business
Wines and Spirits Shops in Kenya are considered one of the most all time-proof businesses due to their consistent product demand. After all, there’s a running joke that Kenya is a drinking nation!
Market research surrounding Wines and Spirits Shops in Kenya is notoriously conflicting. On one hand, they’re viewed as risky business, considering their startup and operating costs are high.
On the other end of the spectrum, Wines and Spirits Shops in Kenya are considered one of the most all time-proof businesses due to their consistent product demand. After all, there’s a running joke that Kenya is a drinking nation!
Taking all information into consideration, if you’re interested in starting a Wines and Spirits Shops in Kenya follow these recommendations to avoid common pitfalls and capitalize on the benefits.
Keep Your Stock Balanced
Inventory is the most challenging and expensive operating cost for Wines and Spirits Shops in Kenya. Having too much product can lead to lost profits but having too little inventory can lose customers.
If you don’t have what a customer wants once, you’re unlikely to get a second chance as they’ll shop elsewhere to find their favorite products. To find a perfect balance, be thoughtful about the quantity of certain products. You can use a reliable Wines and Spirits POS System to help manage stock levels.
It’s helpful to understand which products have a high-profit margin, and which don’t. Beer, for example, has a lower profit margin than wine or spirits.
Inventory is the most challenging and expensive operating cost for Wines and Spirits Shops in Kenya. Having too much product can lead to lost profits but having too little inventory can lose customers.
Stay informed on your industry’s market trends to predict popular products. By understanding current market demand, you can begin buying more of what people want and starting promotions on less-popular options.
By understanding what is and isn’t working in your market, you can avoid under- and overstocking your business.
Know What You’re Selling & Who’s Buying
Understanding your current market and their ideal product supply requires a deep knowledge of who your customers are. After all, college students and high class estates will have vastly different product preferences and priorities when shopping.
If you’re unfamiliar with your area, its advisable to do a simple market research. Amend your selections, promotions, and displays to accommodate their preferences. As you get more traffic in the door, you’ll have a better understanding of whose needs you’re catering to.
As important as it is to understand your customer, it’s equally—if not more—important to know your product. Some customers will know exactly what they want before they walk in the door but others will expect your expertise and guidance while shopping.
Licensing Wines and Spirits Shops in Kenya
After all your hard work, the last thing you want shutting down your business is a license issue. This is often a thorny issue for Wines and Spirits Shops in Kenya though, and it’s important you take the licensing process seriously, especially early on or if and when the rules change.
“Legal and Licensing Requirements for Wines and Spirits Shops in Kenya”
First, it’s important that you know how much a liquor license will cost you. The correct license can cost around Ksh 50,000 depending on where you’re located. You can find the necessary information from the Liquor Licensing Board in your county .
Develop an Online Presence
Similar to any other business right now, it’s important that your Wines and Spirits Shops in Kenya has an online presence. With 81% of shoppers researching online before making a purchase, your business needs to show up in search results.
Ensure your business has a working website and that it’s optimized for search, especially for local search results. A large number of customers shop based on location, so if your business shows up as a nearby option, you’ll see a valuable increase in foot traffic.
Additionally, encourage shoppers to leave positive reviews for your business online. This will increase your credibility when you show up in search results. By having a social media presence, you can easily connect with your customers and encourage them to leave reviews or refer others to your location. Posting value-added content on social media can be another major business driver. For instance, if you’re trying to sell a certain brandy, posting a mouthwatering drink recipe featuring the product can help push it off the shelves.
Aim to Be a One Stop Shop Wines and Spirits Shops in Kenya
Consumers are accustomed to buying everything on their list in one place. As a Wines and Spirits Shop in Kenya, your customers will expect you to carry (almost) everything they need for their event. Stocking disposable cups and ice will save your customers a stop while increasing your revenue.
